TO: | Honorable Dan Branch, Chair, House Committee on Higher Education |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | HB2746 by Kolkhorst (Relating to the establishment of the School of Ethics, Western Civilization, and American Traditions at The University of Texas at Austin.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2010 | ($2,464,583) |
2011 | ($2,483,800) |
2012 | ($2,523,595) |
2013 | ($2,523,982) |
2014 | ($2,544,982) |
Fiscal Year | Probable (Cost) from General Revenue Fund 1 |
---|---|
2010 | ($2,464,583) |
2011 | ($2,483,800) |
2012 | ($2,523,595) |
2013 | ($2,523,982) |
2014 | ($2,544,982) |
Fiscal Year | Change in Number of State Employees from FY 2009 |
---|---|
2010 | 8.0 |
2011 | 8.0 |
2012 | 8.0 |
2013 | 8.0 |
2014 | 8.0 |
The fiscal note will be broken out between construction costs and administrative costs.
Construction Costs
The University of Texas at Austin has indicated that there is currently not space available on the campus to house the new school. For purposes of this fiscal note it is assumed that tuition revenue bonds will be issued to cover construction costs of adding a new floor to a previously planned construction project. Debt service of $1,743,000 per year is estimated based on $20,000,000 project cost at 6% for 20 years.
Administrative Costs
The University of Texas at Austin has indicated existing faculty would teach the courses but that eight additional FTEs would be hired beginning in fiscal year 2010. These FTEs include a director, associate director, assistant director, senior administrative associate, administrative associate, academic advisor and network analyst. Total salary and benefit costs associated with these new FTEs is approximately $640,000 in fiscal year 2010, with slight increases in the subsequent years due to 3% salary increases. Other expenses, including equipment costs, are estimated to be $80,000 per year.
The institution indicated that the enrollment in the school would be from existing students and no new credit hours would be generated as students who chose to major in the program offered by the school would take the required courses in lieu of, not in addition to, courses they would have otherwise taken. Therefore estimates on formula funding and tuition revenue have not been included in this fiscal note.
Source Agencies: | 720 The University of Texas System Administration, 758 Texas State University System, 769 University of North Texas System Administration, 781 Higher Education Coordinating Board, 783 University of Houston System Administration
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LBB Staff: | JOB, KK, RT, GO
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