LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session February 22, 2001 TO: Honorable Irma Rangel, Chair, House Committee on Higher Education FROM: John Keel, Director, Legislative Budget Board IN RE: HB753 by Hochberg (Relating to the degree-granting authority of The University of Texas M. D. Anderson Cancer Center.), As Introduced ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** The bill allows The University of Texas M.D. Anderson Cancer Center to jointly offer courses and master's and doctoral level degree programs with The University of Texas Health Science Center at Houston Graduate School of Biomedical Sciences. The ability to offer joint programs formalizes an existing relationship between the two institutions. Because The University of Texas M.D. Anderson Cancer Center is not recognized by the federal government as an upper-level degree granting institution, it is required to withhold FICA taxes from graduate student stipends paid. Students working with M.D. Anderson faculty receive less net pay than their counterparts working with Health Science Center at Houston faculty for this reason. M.D. Anderson has been adding back the difference for its students to match Health Science Center at Houston stipends. The costs of the SACS accreditation process may offset savings at M.D. Anderson for discontinuing the process of withholding FICA taxes from graduate student stipends if the bill were enacted. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 781 Texas Higher Education Coordinating Board LBB Staff: JK, CT, KC