LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
March 26, 1999
TO: Honorable Robert Junell, Chair, House Committee on
Appropriations
FROM: John Keel, Director, Legislative Budget Board
IN RE: HJR58 by Junell (proposing a constitutional amendment
revising the provisions for funding capital improvements
and acquisitions by institutions of higher education),
As Introduced
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* Estimated Two-Year Net Impact to General Revenue Related Fundsfor *
* HJR58, As Introduced: negative impact of $(151,499,056) through *
* the biennium ending August 31, 2001. *
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The proposed constitutional amendment would appropriate $250 million per
year to the Higher Education Fund (HEF) or an additional $75 million per
year. Constitutionally-related appropriations are currently $175
million per year to the HEF.
Appropriations:
*****************************************************
* Fiscal Year Proposed New Appropriation out of *
* General Revenue Fund for the HEF *
* 0001 *
* 2000 $75,000,000 *
* 2001 75,000,000 *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(75,864,056) *
* 2001 (75,635,000) *
* 2002 (75,635,000) *
* 2003 (75,635,000) *
* 2004 (75,635,000) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Probable Savings/(Cost) from *
* Year General Revenue Fund for the General Revenue Fund for *
* HEF Publication of the Resolution *
* 0001 0001 *
* 2000 $(75,635,000) $(229,056) *
* 2001 (75,635,000) 0 *
* 2002 (75,635,000) 0 *
* 2003 (75,635,000) 0 *
* 2004 (75,635,000) 0 *
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Fiscal Analysis
The proposed constitutional amendment would appropriate $250 million each
year to institutions of higher education that do not benefit from the
permanent university fund or that are not junior college, and would
eliminate the $175 million constitutional appropriation to the Higher
Education Fund (HEF).
Methodology
Current statute requires $50 million to be deposited annually to the HEF,
in addition to the constitutional appropriation, until the fund reaches
$2 billion. The net cost of the proposed constitutional provision would
be reduced to $25 million per year if the statutory requirement for the
additional $50 million annual appropriation to the HEF were repealed.
The Legislature currently appropriates $224.4 million to the HEF
annually.
The cost for publication of the amendment is $229,056.
For purposes of this estimate, it is assumed that capital gains would
remain in the Permanent University Fund.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
LBB Staff: JK, BB, LD, PF