LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 5, 2001
TO: Honorable Irma Rangel, Chair, House Committee on Higher
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1210 by Garcia (Relating to the establishment of a
school of law at the University of North Texas.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1210, As Introduced: negative impact of $(3,981,354) through *
* the biennium ending August 31, 2003. *
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This bill required the board of regents of the University of North Texas
(UNT) to establish and maintain a school of law in Dallas. If the
University of North Texas maintains a campus in the city of Dallas, the
school of law would be located at the campus.
Appropriations:
*****************************************************
* Fiscal Year Appropriation out of General *
* Revenue Fund *
* 0001 *
* 2002 $2,365,677 *
* 2003 1,615,677 *
*****************************************************
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(2,365,677) *
* 2003 (1,615,677) *
* 2004 (7,615,677) *
* 2005 (6,615,677) *
* 2006 (7,115,677) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* General Revenue Fund *
* 0001 *
* 2002 $(2,365,677) *
* 2003 (1,615,677) *
* 2004 (7,615,677) *
* 2005 (6,615,677) *
* 2006 (7,115,677) *
*****************************************************
Technology Impact
N/A
Fiscal Analysis
The fiscal impact on general revenue in 2002-2003 biennium is $750,000 as
a special item and $3,231,354 in debt service for the construction of a
building, according to the Texas Higher Education Coordinating Board
(THECB).
Methodology
Based on analysis prepared by the THECB, UNT will require the
construction of a combined class room/law school building in Dallas on
land that is either donated or already owned by UNT and that construction
will be financed by tuition revenue bonds.
This note assumes the law school would be planned for an enrollment of
approximately 750 students, comparable in size to the law schools at
Texas Southern University and Texas Tech University and about half the
size of the law school at The University of Texas at Austin.
This note assumes that the university would initially receive $750,000
from the Legislature for the 2002-2003 biennium with unexpended budget
authority for the biennium to begin the curriculum design and
accreditation process. The start-up funds would allow the university to
hire a law educator to assist with curriculum and accreditation efforts
and to recruit a dean and library director. In successive biennia,
additional funds would needed to begin hiring faculty and staff and to
pay for initial library materials. Special item funding would probably
be needed until at least fiscal year 2009 after which formula funding
might reflect steady-state enrollments. A law school of this size, once
fully operational, would be expected to have an educational and general
budget of approximately $5 million per year plus $500,000 for the law
library. On that basis, this note forecasts project special item funding
of $6,000,000 for fiscal year 2004 ($3 million for salaries and
operations and $3 million in start-up funding for the library),
$5,000,000 in fiscal year 2005 ($4 million for salaries and operations
and $1,000,000 for the library) and $5,500,000 in fiscal year 2006 (for
salaries and operations).
Assuming 750 students and an amount of space per student the same as the
average for Texas State University, Texas Tech University, University of
Texas at Austin, and University of Houston (182 gross square feet per
student) the school would require a building with 136,500 square feet.
Assuming costs comparable to other classroom construction in the Dallas
area, this note estimates the cost of the building and fixtures at
$18,673,000. Debt service on this amount would be $1,615,677 per year
beginning in fiscal year 2002, based on an assumed bond rate of six
percent per year for 20 years.
The first class of 200 students is assumed to enroll in fall 2005.
Formula funding would begin in the 2008-2009 biennium. Total enrollment
is estimated to grow to 750 by 2011.
In general, this note assumes that the school would follow the
construction and operation timeline of the Texas Tech University
Pharmacy School, a recently created professional school. This project
would be similar to this School in being built apart from an established
university campus and therefore away from the established support
structures of an already existing institution.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 781 Texas Higher Education Coordinating Board
LBB Staff: JK, CT, DB, HM