TO: | Honorable Joe Straus, Speaker of the House, House of Representatives |
FROM: | Ursula Parks, Director, Legislative Budget Board |
IN RE: | HB870 by Bell (Relating to Prairie View A&M University's eligibility to participate in the research development fund.), As Passed 2nd House |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2014 | $0 |
2015 | $0 |
2016 | ($500,000) |
2017 | ($500,000) |
2018 | $0 |
Fiscal Year | Probable (Cost) from General Revenue Fund 1 |
---|---|
2014 | $0 |
2015 | $0 |
2016 | ($500,000) |
2017 | ($500,000) |
2018 | $0 |
Appropriations for the RDF are apportioned among eligible institutions through a formula based on each institution's three-year average of restricted research expenditures. Funding for the RDF is determined by the Legislature and while adding a new institution to the RDF formula allocation would not necessarily result in an additional cost to the state, each eligible institution's share of the RDF appropriation would change to the degree the inclusion of PVAMU affects each eligible institution's share of the total restricted research expenditures data used to allocate the RDF appropriations. The current General Appropriations Act provides approximately $65.3 million for the RDF. Based on provisions of the bill, it is assumed that PVAMU would be eligible during the fiscal year 2014-15 biennium and it would be estimated that Prairie View A&M University would receive approximately $1.0 million biennially in RDF appropriations.
However, based on eligibility provisions of the bill for the biennium ending August 31, 2017, it is assumed that the legislature would appropriate general revenue in the amount Prairie View A&M University would receive according to the allocation methodology of the RDF above the current level of funding provided for the RDF in fiscal years 2014-15, which is assumed to be level with the 2012-13 level of funding of $65.3 million. Based on an analysis of information provided by Texas A&M University System, it is estimated that PVAMU would receive approximately $1.0 million biennially in RDF appropriations if made eligible based on their recent restricted research expenditures. At this level of funding, there would be a cost to general revenue of $500,000 in each fiscal year 2016 and 2017. Since this eligibility provision applies only for the fiscal year 2016-17 biennium, it is assumed that PVAMU would be included in RDF appropriations in fiscal year 2018 with a reallocation of funds from other institutions.
Source Agencies: | 781 Higher Education Coordinating Board, 710 Texas A&M University System Administrative and General Offices, 304 Comptroller of Public Accounts
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LBB Staff: | UP, KK, SK, EH
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