SRC-AMY S.B. 1718 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1718
78R1544 KEL-DBy: Williams
Subcommittee on Higher Education
3/27/2003
As Filed


DIGEST AND PURPOSE 

The comptroller, through the e-Texas Recommendations, recommends an
improvement in the system of appropriating the state's money to an
institution of higher education to ensure that institutions function
within their educational and general funds.  As proposed, S.B. 1718
requires formulas for basic funding of institutions of higher education to
include positive and negative adjustments, as necessary, of estimated
educational and general funds to account for the institutions'
reconciliation of those funds for the preceding biennium.  This bill also
requires the Texas Higher Education Coordinating Board to adopt a uniform
system of financial accounting that takes into account all educational and
general funds received by an institution of higher education and that
requires each institution to reconcile the estimated amount of those
funds, used to determine state appropriations for the institution for the
most recently completed state fiscal biennium, to the actual amount of
educational and general funds that the institution received during that
biennium.   

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 61.059(c), Education Code, to include the
requirement that formulas for basic funding include a positive or negative
adjustment, as appropriate, of the estimated amount of educational and
general funds to be received by an institution for the biennium for which
the formulas are established, to account for the institution's
reconciliation of those funds for the preceding biennium as computed and
reported under Section 61.065 (Reporting; Accounting).  Makes a
nonsubstantive change. 

SECTION 2.  Amends Section 61.065, Education Code, by adding Subsections
(c) and (d), as follows: 

(b) Requires the Texas Higher Education Coordinating Board (THECB) to
adopt a uniform system of financial accounting of all educational and
general funds received by an institution of higher education, including
tuition, certain fees, and proceeds from the sale or educational and
general equipment received by an institution.  Requires the uniform system
to require each institution to reconcile the estimated amount of
educational and general funds used to determine state appropriations for
the institution for the most recently completed state fiscal biennium to
the actual amount of educational and general funds that the institution
received during that biennium. 

(d) Requires each institution to report its reconciliation under
Subchapter (c) to THECB, the comptroller, and the Legislative Budget Board
at the time required by THECB.  

SECTION 3.  Effective date: upon passage or September 1, 2003.