LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 10, 2001
TO: Honorable Rodney Ellis, Chair, Senate Committee on Finance
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2365 by Williams (Relating to funding to enable
Prairie View A&M University to qualify for agricultural
research, extension, and education matching funds,
including federal agricultural research and extension
formula funds.), As Engrossed
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2365, As Engrossed: impact of $0 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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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $0 *
* 2003 0 *
* 2004 (1,355,932) *
* 2005 (1,355,932) *
* 2006 (1,355,932) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* General Revenue Fund *
* 0001 *
* 2002 $0 *
* 2003 0 *
* 2004 (1,355,932) *
* 2005 (1,355,932) *
* 2006 (1,355,932) *
*****************************************************
Technology Impact
N/A
Fiscal Analysis
The bill requires the Texas Higher Education Coordinating Board (THECB)
to include amounts required to meet the current maximum possible federal
matching funds requirement under Section 1449(c), National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. Section
3222d) to Prairie View A&M University (PVAMU) in their formula
recommendations.
The current matching funds requirement is equal to 50% of the federal
funds awarded under the above law.
An additional ten percent is added to be used as matching against first,
any additional funds that may become available as a result of the
redistribution of federal awards made to institutions that fail to meet
matching requirements of the named federal act, and second, any other
federal program or any non-state funding source sources for agricultural
research, extension, education funds.
Any funds not used for matching in a fiscal year would lapse at the end
of that year.
Methodology
Currently, PVAMU receives $1,920,600 a year in special item funding for
this purpose. It is assumed that general revenue will be used for the
remaining matching appropriations beginning in fiscal year 2004. No
amounts are included for the 2002-03 biennium, because the THECB has
already reported their formula recommendations for the 2003-03 biennium.
It is also assumed that federal funding will remain relatively
constant, and PVAMU's relative standing among all eligible institutions
will remain basically unchanged.
Based on information provided by PVAMU, the annual cost is as follows:
Required Federal Match (Sec. (a)) $2,730,443.50
Additional 10% (Sec. (b)) 546,088.50
Total Cost $3,276,532.00
Current Special Item Funding $1,920,600.00
Additional Funding Required $1,355,932.00
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 715 Prairie View A&M University
LBB Staff: JK, SD, CT, DB, HM