LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 2, 2001
TO: Honorable Robert Junell, Chair, House Committee on
Appropriations
FROM: John Keel, Director, Legislative Budget Board
IN RE: HJR78 by Wilson (Proposing a constitutional amendment to
provide an equitable distribution of the income from the
permanent university fund for the support and
maintenance of Prairie View A&M University.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HJR78, As Introduced: negative impact of $(80,000) 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. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(80,000) *
* 2003 0 *
* 2004 0 *
* 2005 0 *
* 2006 0 *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Probable *
* Year Savings/(Cost) Revenue Revenue Revenue *
* from General Gain/(Loss) to Gain/(Loss) to Gain/(Loss) to *
* Revenue Fund Univesity Texas A&M Prairie View *
* 0001 ofTexas University A&M University *
* Excellence Excellence Excellence *
* Allocation Allocation Allocation *
* 2002 $(80,000) $(71,574,000) $6,465,000 $65,109,000 *
* 2003 0 (73,945,000) 7,865,000 66,080,000 *
* 2004 0 (79,825,000) 8,524,000 71,300,000 *
* 2005 0 (86,286,000) 9,442,000 76,884,000 *
* 2006 0 (93,070,000) 10,340,000 82,730,000 *
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The table above reflects the change in the allocation from the Available
University Fund. The distribution from the Permanent University Fund to
the Available University Fund is unchanged.
Fiscal Analysis
If passed, the resolution would propose a constitutional amendment to
change the distribution of the income from the Permanent University Fund
(PUF) as it relates to the support and maintenance of Prairie View A&M
University.
Currently, the annual distribution of total return from the PUF goes to
the Available University Fund (AUF) and is distributed two-thirds to the
use of the University of Texas System (UTS) and one-third to the use of
the Texas A&M System. Prairie View A&M University receives funding from
the share directed to the Texas A&M System.
The proposed amendment would institute a new allocation formula for the
distribution from the AUF as follows: Prairie View A&M would no longer
be funded from the Texas A&M System. Following debt service payments by
the University of Texas System, 50 percent of the remainder would be
allocated to the University of Texas System, and 50 percent would be
allocated to Prairie View A&M.
Methodology
The new distribution of AUF was prepared by the Comptroller's office.
The estimate is based on projected PUF total returns over the next five
years, on projected payments for The University of Texas System and Texas
A&M System PUF-authorized bonds, and on projected distributions to the
two university systems and Prairie View A&M University over the next five
years. The new distribution formula was applied to the five-year
projections to arrive at the change in allocations.
The Secretary of State estimates the cost to prepare, translate, and
publish explanatory statement and send Spanish translation notice by
mail and conduct an election for the proposed Constitutional amendment
to be $80,000.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 720 The University of Texas System, 715 Prairie
View A&M University, 307 Secretary of State, 781
Texas Higher Education Coordinating Board, 304
Comptroller of Public Accounts
LBB Staff: JK, SD, DB, HM