LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 13, 2001
TO: Honorable Irma Rangel, Chair, House Committee on Higher
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1417 by Jones, Jesse (Relating to the University of
North Texas System and the component institutions of that
system.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1417, As Introduced: negative impact of $(2,500,000) through *
* the biennium ending August 31, 2003. *
* *
* 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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The bill creates a new four-year undergraduate and graduate coeducational
institution of higher education known as the University of North Texas
at Dallas (UNT-Dallas) to be located in the City of Dallas on property
designated by the board of regents of the University of North Texas
System.
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $0 *
* 2003 (2,500,000) *
* 2004 (5,100,000) *
* 2005 (5,100,000) *
* 2006 (5,100,000) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* General Revenue Fund *
* 0001 *
* 2002 $0 *
* 2003 (2,500,000) *
* 2004 (5,100,000) *
* 2005 (5,100,000) *
* 2006 (5,100,000) *
*****************************************************
Technology Impact
Creation of a new university will require a significant investment in
information technology, both for administrative purposes and for
academic programs.
Fiscal Analysis
The cost to the general revenue fund is estimated at $2.5 million in
fiscal year 2003.
Methodology
Estimates of the cost of creation of a new university in Dallas were
based on the costs of creating Texas A&M International University in
Laredo.
Approximately $3.5 million per year in program development funds were
provided for the Texas A&M International. We assume at least $2.5
million per year would be provided to UNT-Dallas, starting in fiscal year
2003.
The University of North Texas System has stated that it would not acquire
land or construct buildings prior to fiscal year 2004. Hence, there
will be no debt service in the current biennium. Debt service starting
in fiscal year 2004 is estimated at $2.6 million per year.
No additional formula funding is required, since a university system
center in Dallas already exists.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 763 UNT Health Science Center , 781 Texas Higher
Education Coordinating Board, 752 University of
North Texas
LBB Staff: JK, CT, DB, HM