LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 20, 2001
TO: Honorable Irma Rangel, Chair, House Committee on Higher
Education
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 Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2365, As Introduced: negative impact of $(4,067,796) through *
* the biennium ending August 31, 2003. *
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Appropriations:
*****************************************************
* Fiscal Year Appropriation out of General *
* Revenue Fund *
* 0001 *
* 2001 $(1,355,932) *
* 2002 (1,355,932) *
* 2003 (1,355,932) *
*****************************************************
General Revenue-Related Funds, Six-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2001 $(1,355,932) *
* 2002 (1,355,932) *
* 2003 (1,355,932) *
* 2004 (1,355,932) *
* 2005 (1,355,932) *
* 2006 (1,355,932) *
****************************************************
All Funds, Six-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* General Revenue Fund *
* 0001 *
* 2001 $(1,355,932) *
* 2002 (1,355,932) *
* 2003 (1,355,932) *
* 2004 (1,355,932) *
* 2005 (1,355,932) *
* 2006 (1,355,932) *
*****************************************************
Fiscal Analysis
This bill requires an annual appropriation to Prairie View A&M University
(PVAMU) from general revenue, or other available sources of revenue,
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).
The current matching funds requirement is equal to 50% of the federal
funds awarded under the above law.
An additional 10 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. 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 additional funding required
for the 2002-2003 biennium would be $2,711,864. The calculation of this
estimate is as follows:
2002
2003
Required Federal Match (Sec. (a)) $2,730,443.50 $2,730,443.50
Additional 10% (Sec. (b)) 546,088.50
546,088.50
Total Cost $3,276,532.00
$3,276,532.00
Current Special Item Funding $1,920,600.00 $1,920,600.00
Additional Funding Required $1,355,932.00 $1,355,932.00
It is also assumed that the bill would receive a vote of two-thirds of
all the members elected to each house, and become effective immediately
which would require an appropriation for 2001.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 715 Prairie View A&M University, 710 The Texas
A&M University System, 781 Texas Higher Education
Coordinating Board
LBB Staff: JK, CT, DB, HM