LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 16, 1997
TO: Honorable Bill Ratliff, Chair IN RE: Senate Bill No. 572
Committee on Finance By: 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 Introduced
Implementing the provisions of the bill would result in a net
negative impact of $(4,356,000) 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, 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 on September
1, 1997.
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 ($2,178,000) 39.0
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:
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 ($2,178,000)
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 ,RR ,DB