LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 20, 2001 TO: Honorable Rodney Ellis, Chair, Senate Committee on Finance FROM: John Keel, Director, Legislative Budget Board IN RE: SB1013 by West, Royce (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 ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1013, As Introduced: negative impact of $(4,067,796) through * * the biennium ending August 31, 2003. * ************************************************************************** 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, SD, CT, DB, HM