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 ************************************************************************** * No significant implication to the State is anticipated. * ************************************************************************** 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