LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 27, 2001
TO: Honorable James E. "Pete" Laney, Speaker of the House,
House of Representatives
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1545 by Uher (Relating to the operation, regulation,
administration, and financing of public institutions of
higher education.), As Passed 2nd House
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1545, As Passed 2nd House: negative impact of $(600,000) *
* 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. *
**************************************************************************
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(300,000) *
* 2003 (300,000) *
* 2004 (300,000) *
* 2005 (300,000) *
* 2006 (300,000) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* General Revenue Fund *
* 0001 *
* 2002 $(300,000) *
* 2003 (300,000) *
* 2004 (300,000) *
* 2005 (300,000) *
* 2006 (300,000) *
*****************************************************
Fiscal Analysis
If passed, this bill would exempt higher education institutions
(institutions) from several State regulations or requirements.
Institutions would be exempted from purchasing regulations except rules
regarding historically underutilized businesses, and could purchase goods
or services by the method that provides the best value.
Institutions would be exempted from regulations regarding leave and
holidays. Leave provisions for employees at institutions could be
amended to allow institutions to combine vacation leave, sick leave and
holidays. Institutions would be required to enter into a memorandum of
understanding with the Teacher Retirement System of Texas, the Employees
Retirement System of Texas, and the Texas Higher Education Coordinating
Board concerning awards of accrued leave or other related issues.
The bill would authorize institutions to grant merit salary increases,
including one-time merit payments.
The bill would authorize institutions to pay employees with multiple
appointments for working more than 40 hours a week in lieu of
compensatory time.
The bill would authorize institutions to employ a person who has retired
from state government.
The bill would allow institutions to notify employees by use of
electronic media.
The bill would authorize institutions to pay employees for the accrued
balance of the employee's vacation time even if the employee is
re-employed by the state within 30 days of separation.
The bill would authorize institutions to reduce employees salary for
parking and would eliminate the provision that these funds be used only
for employee parking facilities. In addition, the bill would allow
institutions to reduce employees' salary for club memberships,
recreational sport membership or similar programs.
This bill would simplify reporting requirements for institutions, and it
would eliminate the requirement that certain institutions secure the
opinion of the Attorney General on the conveyance of title of any real
property given to those institutions.
Institutions would be exempted from strategic planning requirements.
This bill would authorize institutions to charge a credit card user a
processing fee.
This bill would authorize Midwestern State University to acquire a museum
and requires funding for the museum to be included in formula funding.
Methodology
Article 1 of this bill would partially implement recommendation ED-4 from
the Comptroller's report, e-Texas: Smaller, Smarter, Faster Government.
This portion of the bill would simplify and deregulate the procurement
process at institutions of higher education. Although institutions could
save money under the bill's provisions, it is assumed any funds saved
through greater efficiencies would be retained by the institutions for
use elsewhere, resulting in no significant fiscal impact on the State.
The provisions of the bill addressing leave, merit salary increases, and
hiring retirees could have an effect on the budgets of institutions of
higher education, as well as on the State's retirement systems.
Additional information from the institutions is needed to determine the
potential cost for these provisions. Any salary increases paid from
general revenue would result in retirement benefits equal to six percent
of the salary increases.
Simplifying reporting requirements of universities could reduce
administrative costs. It is assumed that any funds saved through greater
efficiencies would be retained by the institutions for use elsewhere,
resulting in no significant fiscal impact on the State.
Allowing institutions of higher education to charge a convenience fee to
students using a credit card to pay for tuition, fees and other charges
would increase revenues to the institutions. However, these fees would
be auxiliary in nature and would not impact State appropriations.
Based on analysis by the Texas Higher Education Coordinating Board, the
cost for the operation and maintenance of a museum is $300,000 a year.
Formula funding does not provide funding for museum. Therefore it is
assumed that special item funding would be provided for the museum.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
LBB Staff: JK, CT, DB