MINUTES SENATE INTERIM COMMITTEE ON FUNDING ISSUES IN EDUCATION Wednesday, April 8, 1998 8:30 a.m. Capitol Extension, Room E1.036 ***** Pursuant to a notice posted in accordance with Senate Rule 11.11, a public hearing of the Senate Interim Committee on Funding Issues in Education was held on Wednesday, April 8, 1998 in the Capitol Extension, Room E1.036, at Austin, Texas. ***** MEMBERS PRESENT: MEMBERS ABSENT: Senator Teel Bivins Senator Bill Ratliff Senator Robert Duncan Senator David Sibley Senator Judith Zaffirini ***** [Co-Chairmen Bivins and Ratliff decided that Senator Ratliff would Chair this hearing. Hereinafter "Chair" refers to Senator Ratliff, or to whomever he has handed the gavel.] The Chair called the meeting to order at 8:30 a.m. There being a quorum present, the following business was transacted. The following members arrived after the roll was called: Senator Gregory Luna Senator Royce West The Chair called on the following witnesses to testify before the committee on the committee charges and agenda topics indicated: Charge #3 - Management, Investment and Distribution of the Permanent School Fund, Available School Fund, Permanent University Fund, Available University Fund and Higher Education Fund Management and Investment of the Permanent University Fund William H. Cunningham, representing The University of Texas System, provided oral and written testimony. Thomas Ricks, representing The University of Texas Investment Management Company, provided oral testimony. Available University Fund and Permanent University Fund Bond Proceeds William H. Cunningham, representing The University of Texas System, provided oral and written testimony Tom Scott, representing The University of Texas System, provided oral testimony. Barry B. Thompson, representing Texas A&M University System, provided oral testimony. Richard Lindsay, representing Texas A&M University System, provided oral testimony. Higher Education Fund Formula and Allocation Process Don W. Brown, representing the Texas Higher Education Coordinating Board, provided oral and written testimony. Roger W. Elliott, representing the Texas Higher Education Coordinating Board, provided oral testimony. Capital Allocation Comparison Deborah Beck, representing the Legislative Budget Board provided oral testimony. Dean Murray, representing the Permanent School Fund, provided oral testimony. Distribution of the Available School Fund Ursula Parks, representing the Legislative Budget Board, provided oral testimony. Charge #5 - Allocation of Funds for Special Items, Medical Schools and Texas A&M Service Agencies Special Item Review Nancy Frank, representing the Senate Finance Committee, provided oral testimony. Formulas for Health Science Centers Tom Scott, representing The University of Texas System, provided oral testimony on behalf of the Health Science Center Funding Working Group. Overview of Formula Funding for Texas A&M Service and Research Agencies Eric Wright, representing the Senate Finance Committee, provided oral testimony. Stanton C. Calvert, representing the Texas A&M University System, provided oral testimony. Infrastructure Formula Roger W. Elliott, representing the Texas Higher Education Coordinating Board, provided oral testimony. Research Formula Stanton C. Calvert, representing the Texas A&M University System, provided oral testimony. James G. Butler, representing Texas A&M University System, provided oral testimony. Charge #1 - Status of Student Financial Aid and Tuition Exemption/Waiver Programs Recommended Changes to Student Financial Aid Policies, Including Consolidation of Programs, Report on Tuition Exemption/Waiver Statutes, and Cost of Scholarships to Students Completing the Recommended High School Program Don W. Brown, representing the Texas Higher Education Coordinating Board, provided oral testimony and a written report. Sharon Cobb, representing the Texas Higher Education Coordinating Board, provided oral testimony. Charge #6 - Costs of Textbooks and Use of Computers and Other Technological Resources as Alternatives to Textbooks Costs of Textbooks and Electronic Textbook Pilot Program Ann Smisko, representing the Texas Education Agency, provided oral testimony. Robert Leos, representing the Texas Education Agency, provided oral testimony. Other Business Recommendations of Formula Advisory Committee Regarding University Funding Formulas Don W. Brown, representing the Texas Higher Education Coordinating Board provided oral testimony. Closing remarks were given by the Chair and committee members. There being no further business, at 1:45 p.m. Senator Bivins moved that the Committee stand recessed subject to the call of the Chair. Without objection, it was so ordered. ______________________ Senator Bill Ratliff, Chair ______________________ Patricia Hicks, Clerk