LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 26, 1997
TO: Honorable Bob Bullock IN RE: Senate Bill No. 572, As Passed 2nd House
Lieutenant Governor Fraser
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB572 ( Relating
to the transfer of the University of Central Texas to the Texas
A&M University System.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB572-As Passed 2nd House
Implementing the provisions of the bill would result in a net
negative impact of $(2,178,000) 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
The bill would authorize the transfer of The University of Central
Texas to the Texas A&M University System or other university
system, if both parties agree to the transfer and the Texas
Higher Education Coordinating Board approves it.
Methodolgy
It is assumed that the University of Central Texas would become
a component of the Texas A&M University System or other university
system on September 1, 1998.
The University of Central Texas
has enrolled approximately 500 students over the last three
years. It is assumed that 500 students who would have attended
a private institution, would attend the new public university.
It is also assumed that the enrollment would increase. However,
it is assumed that the additional students would have attended
other public universities and the increased enrollment would
not significantly increase costs to the State. The general
revenue cost per full time student at a public university is
$4,356.
The university currently leases about 30,000 square
feet from Central Texas College. It is assumed that the university
would continue to lease space from Central Texas College and
the costs of the lease would approximate the costs of providing
maintenance, and utilities at other public university.
Additional
costs may also be incurred for planning, faculty recruitment
and program development. Special item funding could be provided
for these costs.
Salary information reported by Sul Ross
- Rio Grande, a public upper-level institution with similar
enrollment, was used to estimate the additional full-time equivalent
employees. The average salary reported by Sul Ross- Rio Grande
in its Legislative Appropriation Request is $32,429. Therefore,
it is assumed that the additional full-time equivalent employees
is equal to the estimated salaries expense divided by the average
salary.
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 Change in Number
Savings/(Cost) of State
from General Employees from
Revenue Fund FY 1997
0001
1998 $0 0.0
1998 (2,178,000) 39.0
2000 (2,178,000) 39.0
2001 (2,178,000) 39.0
2002 (2,178,000) 39.0
Net Impact on General Revenue Related Funds:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $0
1999 (2,178,000)
2000 (2,178,000)
2001 (2,178,000)
2002 (2,178,000)
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: 710 Texas A&M University System
323 Teacher Retirement System and Optional Retirement Program
781 Higher Education Coordinating Board
LBB Staff: JK ,LP ,RR ,DB