LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session April 5, 1995 TO: Honorable Bill Ratliff, Chair IN RE: Senate BillNo. 1298 Committee on Education By: Cain, Turner, Senate Jim, Austin, Texas Sibley FROM: John Keel, Director In response to your request for a Fiscal Note on Senate Bill No. 1298 (Relating to the transfer of the Baylor College of Dentistry to The Texas A&M University System) this office has determined the following: The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The bill would establish Baylor College of Dentistry in Dallas as a public institution and transfer its governance to the Texas A&M University System. Contracts and written obligations, including bonds, entered into by the board of trustees of Baylor College of Dentistry would be assumed by the TAMU System. Provision would be made for students and existing employees, including state employment benefits to all Baylor employees who are in service at the time of the transfer. The transfer would be effective in fiscal year 1997. Although there would be initial cost to the State as a result of assuming the staff benefits for existing Baylor employees, there would be savings from the transfer as a result of economies of scale associated with membership in the system and other efficiencies of operation, especially with regards to academic activities such as planning, support, and records and business office activities. To the extent that these savings accrue, appropriations for operating Baylor College of Dentistry could be reduced. Baylor College of Dentistry currently receives $13.3 million per year from general revenue and approximately $4 million per year from its foundation. Baylor's current tuition and fee structure is the same as that of Texas public dental schools. There is no current bonded indebtedness. The probable fiscal implication of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Fiscal Probable Year Cost/(Savings) from General Revenue Fund 001 1996 $0 1997 1,372,500 1998 (1,499,500) 1999 (2,042,000) 2000 (2,299,500) Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. No fiscal implication to units of local government is anticipated. Source: Texas A&M University System, Higher Education Coordinating Board, Baylor College of Dentistry, Comptroller of Public Accounts LBB Staff: JK, MK, WRR