LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 2, 1997
TO: Honorable Robert Junell, Chair IN RE: House Bill No. 538
Committee on Appropriations By: Maxey
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB538 ( Relating
to the distribution of general revenue appropriations to certain
institutions of higher education.) this office has detemined
the following:
Biennial Net Impact to General Revenue Funds by HB538-As Introduced
Implementing the provisions of the bill would result in a net
positive impact of $7,000,000 to General Revenue Related Funds
through the biennium ending August 31, 1999.
Fiscal Analysis
The bill would require the Comptroller to distribute general
revenue appropriations to all institutions of higher education,
except public junior colleges, in equal monthly installments
on the first business day of each month. In addition, the bill
would allow the Comptroller to distribute all or part of the
monthly installments to an institution early, if the Comptroller
determined that the institution had an unusual need for it.
The
bill would take effect September 1, 1997.
The bill would
implement the Texas Performance Review recommendation ED20 in
Disturbing the Peace: The Challenge of Change in Texas Government.
The bill would result in increased interest earnings to the
general revenue fund. The bill would also result in decreased
interest earnings on other educational and general income and
institutional funds to the extent that institutions increase
expenditures from these accounts earlier in the fiscal year.
Methodolgy
The Comptroller of Public Accounts estimates are based on an
examination of general revenue spending patterns of the affected
institutions. General revenue appropriations to these institutions
for fiscal year 1997 were identified. Interest income on these
appropriations for the whole year was calculated based on the
institutions current spending patterns and the monthly distribution
pattern proposed by the bill.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Revenue Probable Revenue
Gain/(Loss) from Gain/(Loss) from
General Revenue Other
Fund Educational and
General Income/
GR-Dedicated
0001 8022
1998 $3,500,000 ($3,500,000)
1998 3,500,000 (3,500,000)
2000 3,500,000 (3,500,000)
2001 3,500,000 (3,500,000)
2002 3,500,000 (3,500,000)
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $3,500,000
1999 3,500,000
2000 3,500,000
2001 3,500,000
2002 3,500,000
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: Agencies: 781 Higher Education Coordinating Board
720 University of Texas System Administration
304 Comptroller of Public Accounts
710 Texas A&M University System
LBB Staff: JK ,RR ,LD