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: SB576 by West, Royce (Relating to the University of North Texas System and the component institutions of that system.), As Engrossed ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB576, As Engrossed: positive 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. * ************************************************************************** The bill creates a new four-year undergraduate and graduate coeducational institution of higher education known as the University of North Texas at Dallas (UNT-Dallas) to be located in the City of Dallas on property designated by the board of regents of the University of North Texas System. General Revenue-Related Funds, Five-Year Net Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $0 * * 2003 0 * * 2004 (5,100,000) * * 2005 (5,100,000) * * 2006 (5,100,000) * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Savings/(Cost) from * * General Revenue Fund * * 0001 * * 2002 $0 * * 2003 0 * * 2004 (5,100,000) * * 2005 (5,100,000) * * 2006 (5,100,000) * ***************************************************** Technology Impact Creation of a new university will require a significant investment in information technology, both for administrative purposes and for academic programs. Fiscal Analysis The cost to the general revenue fund is estimated at $5.1 million in fiscal year 2004 Methodology Estimates of the cost of creation of a new university in Dallas were based on the costs of creating Texas A&M International University in Laredo. We assume at least $2.5 million per year would be provided to UNT-Dallas, starting in fiscal year 2004. The University of North Texas System has stated that it would not acquire land or construct buildings prior to fiscal year 2004. Hence, there will be no debt service in the current biennium. Debt service starting in fiscal year 2004 is estimated at $2.6 million per year. 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, 752 University of North Texas LBB Staff: JK, CT, DB, HM