LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 7, 1997
TO: Honorable Bill Ratliff, Chair IN RE: House Bill No. 1795,
As Engrossed
Committee on Finance By: Kamel
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB1795 ( relating
to The University of Texas at Tyler) this office has detemined
the following:
Biennial Net Impact to General Revenue Funds by HB1795-As Engrossed
Implementing the provisions of the bill would have no fiscal
impact to General Revenue Related Funds through the biennium
ending August 31, 1999. Beginning in FY 2000, cost savings
would be realized as The University of Texas at Tyler makes
the transition from upper-level formula funding to the lower
four-year formula funding.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
The bill would authorize The University of Texas at Tyler to
offer freshmen and sophomore undergraduate programs.
Methodolgy
It is assumed that freshmen and sophomore enrollment at the
University of Texas at Tyler (UT Tyler) would be limited. It
is also assumed that all freshmen students would have attended
another public general academic institution. The estimated
increase in full-time student equivalents is 200 in 1998, increasing
to 800 by 2002.
This estimate assumes a slower development
of the lower division programs than experienced by other upper-level
institutions converted to a four-year institution, including
The University of Texas at Permian Basin, Texas A&M Corpus Christi
and Texas A&M International.
Since the students would have
attended another public general academic institution, the State
would not incur additional costs for the freshmen and sophomore
students at UT Tyler.
The increase in the number of students
attending UT Tyler could create a need for additional buildings,
capital equipment, and library materials. However, these costs
are eligible for support through Permanent University Fund bond
proceeds, and no general revenue costs are included.
Additional
costs could also be incurred for planning, faculty recruitment
and program development. Special item funding could be provided
for these costs. No amounts for these items are included.
In
addition, the State would realize costs savings in fiscal years
FY 2000 to FY 2008 as The University of Texas at Tyler made
the transition from formula funding at the higher upper-level
rate to the four-year rate. It is estimated that faculty
salary and departmental operating costs would decrease from
FY 1998 to FY 2000 by 9% or $150,640; to FY 2001 by 18% or
$301,280; and to FY 2002 by 28% or $468,657.
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
Savings/(Cost)
from General
Revenue Fund
0001
1998 $0
1998 0
2000 150,640
2001 301,280
2002 468,657
Net Impact on General Revenue Related Funds:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $0
1999 0
2000 150,640
2001 301,280
2002 468,657
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:
LBB Staff: JK ,RR ,DB