LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 26, 1997
TO: Honorable Teel Bivins, Chair IN RE: Senate Bill No. 274
Committee on Education By: Lucio
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB274 ( Relating
to lower division curricula at The University of Texas at Brownsville.)
this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB274-As Introduced
Implementing the provisions of the bill would result in a net
impact of $0 to General Revenue Related Funds through the biennium
ending August 31, 1999.
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
This bill would authorize The University of Texas at Brownsville
to offer freshmen and sophomore undergraduate courses.
Methodolgy
It is assumed that UT Brownsville will coordinate course offerings
with Texas Southmost College to avoid unnecessary duplication.
Therefore, students attending lower-division courses at UT
Brownsville would have attended courses at another public general
academic institution and not Texas Southmost College.
An
increase in the number of students attending UT-Brownsville
could create a need for additional buildings, capital equipment,
and library materials. However, these costs are eligible for
support through Higher Education Funds, an no general revenue
costs are included.
Additional costs may also be incurred
for planning, faculty recruitment and program development.
Special item funding could be provide for these costs.
In
addition, the State would realize cost savings in fiscal years
FY 2000 to FY 2008 as UT Brownsville made the transition from
formula funding at the higher upper-level rate to the four-year
rate. It is estimated that formula amounts would decrease from
FY 98 to FY 2000 by 9% or $82,200; to FY 2001 by 18% or $164,400;
and to FY 2002 by 28% or $255,700.
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
1998
2000 82,200
2001 164,400
2002 255,700
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 $0
1999 0
2000 82,200
2001 164,400
2002 255,700
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: 720 University of Texas System Administration
781 Higher Education Coordinating Board
LBB Staff: JK ,LP ,DB