LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 17, 1997
TO: Honorable Bill Ratliff, Chair IN RE: Senate Bill No. 840
Committee on Finance By: Ratliff
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB840 ( Relating
to The University of Texas at Tyler.) this office has detemined
the following:
Biennial Net Impact to General Revenue Funds by SB840-As Introduced
Implementing the provisions of the bill would result in 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 funding formula.
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 and sophomore 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.
The 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.
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 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:
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 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: 720 University of Texas System Administration
781 Higher Education Coordinating Board
LBB Staff: JK ,RR ,DB