LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 3, 2001
  
  
          TO:  Honorable Irma Rangel, Chair, House Committee on Higher
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB3607  by Garcia (Relating to the transfer of governance
               of certain public institutions of higher education to the
               University of North Texas System and the designation of
               the University of North Texas as a flagship
               university.), As Introduced
  
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*  No significant implication to the State is anticipated.               *
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The bill would transfer governance of The University of Texas at
Arlington, The University of Texas at Dallas, and The University of Texas
Southwestern Medical Center at Dallas to the University of North Texas
System.  It also designates the University of North Texas as a flagship
university.

The University of North Texas System would assume additional
administrative costs with the transfer of the three institutions.
However, it is assumed that those costs would be offset by savings at The
University of Texas System Administration.

According to The University of Texas System, removing the three
institutions from their system would lower the Triple A bond rating of
the system, and cost institutions more in debt service on their future
building projects.  This bond rating is based on several criteria,
including the geographical diversity in the student mix and revenue
sources throughout the system.
  
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, 769   University of
                   North Texas System, 304   Comptroller of Public
                   Accounts, 720   The University of Texas System
LBB Staff:         JK, CT, DB, HM