LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 13, 1999
TO: Honorable Irma Rangel, Chair, House Committee on Higher
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3348 by Turner, Bob (Relating to accounting for the
receipt and expenditure of educational and general funds
of an institution of higher education.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3348, As Introduced: positive impact of $18,000,000 through the *
* biennium ending August 31, 2001. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $9,000,000 *
* 2001 9,000,000 *
* 2002 9,000,000 *
* 2003 9,000,000 *
* 2004 9,000,000 *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Revenue Gain/(Loss) from *
* General Revenue Fund *
* 0001 *
* 2000 $9,000,000 *
* 2001 9,000,000 *
* 2002 9,000,000 *
* 2003 9,000,000 *
* 2004 9,000,000 *
*****************************************************
Fiscal Analysis
The bill would require the Comptroller of Public Accounts and the Texas
Higher Education Coordinating Board to adopt a uniform system of
accounting for all educational and general funds (E&G) for all higher
education institutions. The bill would also require each institution to
report a reconciliation of estimated and actual E&G funds. Those
institutions with actual funds greater than estimated amounts would be
prohibited from spending a portion of its general revenue appropriations
in the following fiscal year without prior approval of the Legislative
Budget Board. It is estimated that the Legislative Budget Board would
annually disapprove expenditure of $9 million in general revenue funds
based on review of past reconciliations of estimated and actual E&G
funds
Methodology
It is assumed that the Legislative Budget Board would approve expenditure
of all general revenue funds for all higher education institutions
except general academic institutions, because general revenue
appropriations are calculated using other E&G funds for general academic
institutions only.
It is also assumed that board authorized tuition increases and statutory
tuition increases would not be considered in the calculation of excess
other E&G funds, because these funds are held outside the funding
formulas and are not used in the calculation of general revenue funds.
Estimates of other E&G income are based upon enrollment in the base
period (for 2000 and 2001 the base period is 1999). The estimates do not
incorporate changes in enrollment between the base period and the
biennium funded. Therefore, it is assumed that excess other E&G funds
resulting from changes in enrollment would be approved.
It is assumed that general academic institutions would not be authorized
to expend general revenue funds in an amount equal to 1.3% of estimated
other E&G income. Estimated other E&G income for general academic
institutions excluding board authorized tuition and statutory tuition
income for 2000 is $489 million. Therefore, the state would realize an
estimated general revenue savings of $9 million a year.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 783 University of Houston System Administration,
758 Texas State University System, 781 Higher
Education Coordinating Board, 304 Comptroller of
Public Accounts, 710 A&M University System Texas
LBB Staff: JK, CT, DB, CG