LEGISLATIVE BUDGET BOARD
Austin, Texas
 
HIGHER EDUCATION IMPACT STATEMENT
 
83RD LEGISLATIVE REGULAR SESSION
 
March 5, 2013

TO:
Honorable Kel Seliger, Chair, Senate Committee On Higher Education
 
FROM:
Ursula Parks, Director, Legislative Budget Board
 
IN RE:
SB24 by Hinojosa (Relating to the creation of a new university in South Texas within The University of Texas System.), As Introduced

SB 24 would create a new university in South Texas as a component institution of The University of Texas System. The proposed legislation merges The University of Texas at Brownsville (UTB) and The University of Texas Pan American (UTPA) to create a new university in South Texas with academic campuses in Cameron and Hidalgo counties and would include the establishment of a new medical school in Harlingen and administrative offices in McAllen and a math and science academy for high school students.

 

Summary of Findings

 

Passage of SB 24 would not disrupt student access to higher education for Texas residents in the Rio Grande Valley, as the new university would maintain its presence in the various locations where UTB and UTPA currently offer courses and degree programs. The legislation guarantees enrollment in the new university for all current students of the two existing universities. There would be no immediate impact on formula funding, as the change from enrollment at either UTB or UTPA to enrollment at the new university would not generate additional funding at this time.

 

Merging the two existing higher education institutions would require agreement on a name and reconciliation of existing programs. Immediate costs would be incurred related to the transition to the new university, including the development and maintenance of a new data and reporting systems. The new institution would need to obtain Coordinating Board approval and seek regional accreditation.

         

There is the potential for cost savings, which could be realized by the new university through reducing duplicated fixed overhead costs, streamlining existing programs and administrative units. However, estimating any cost savings at this point is premature. UTB is currently in the process of removing itself from its long-standing partnership with Texas Southmost College (TSC).  TSC owns all the land at the current location, while UTB owns only a few of the buildings. Even if this proposed university merger did not occur as proposed, UTB would still be faced with significant costs in obtaining land, constructing new buildings, and hiring additional staff and faculty to replace those lost through the dissolution of the UTB –TSC partnership.

 

The new university would combine existing degree programs and administrative units. Each university offers degree programs through a variety of Schools or Colleges. They each have similar degree programs offered in Education, Business Administration, Liberal Arts, Engineering and Health Professions. Additionally, the merger could promote greater opportunities for faculty research and collaboration.

 

Establishing a new medical school requires the long-term commitment of local, regional, and state constituencies. The establishment of a new medical school located in South Texas would be costly; however, the need for a medical school in the area has been documented. The startup costs to build a facility, hire administrators and faculty, and obtain accreditation would be considerable.  Specific estimates of that cost are difficult to make, as there are no specific plans related to the development and startup timeline, type of facilities to be built, and number of students to be admitted. In addition to these startup costs, there would be significant annual costs as well, which could exceed $99 million per year, based on the recent establishment of the State’s newest medical school in El Paso.

 

Background

 

The two universities that would merge were originally one institution. However, each university has a distinct history and the two institutions are geographically separated. UTPA began as Edinburg College in 1927; in 1952 it became a public university (Pan American College, later Pan American University) authorized by the Texas Legislature; and in 1989 it became part of The University of Texas (UT) System as The University of Texas Pan American. The main campus is located at 1201 West University Drive in Edinburg, Texas.  UTPA also has a teaching site in nearby McAllen, Texas, where it offers a variety of graduate certificates and degrees.  At present, UTPA offers 56 baccalaureate degree programs, 47 master’s degree programs, and 3 doctoral degree programs. UTPA has seven associated colleges: Arts and Humanities, Business Administration, Education, Engineering and Computer Science, Health Sciences and Human Service, Science and Mathematics, and Social and Behavioral Sciences. UTPA’s fiscal year (FY) 2012 budget was $247,581,039,[1] and the institution reported 797 faculty and 1,155 staff in 2011.[2]

 

In fall 2012, UTPA had a headcount of 19,302 students: 16,570 undergraduates and 2,732 post-baccalaureate and graduate students; its full-time student equivalency (FTSE) was 14,892. The demographic breakdown of UTPA’s headcount enrollment for fall 2012 is shown in the Table 1.


Table 1. UT Pan American – Student Enrollment

Total Headcount

19,302

White Students

722

African American Students

128

Hispanic Students

17,221

Asian Students

194

International Students

535

Other Students

502

Male Students

8,501

Female Students

10,801

Students under 18 years of age

275

Students between 18 and 21 years of age

9844

Students between 22 and 24 years of age

4,035

Students between 25 and 29 years of age

2,413

Students between 30 and 34 years of age

1,194

Students 35 years of age and older

1,541

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                       Source: Coordinating Board, Higher Education Accountability System.

 

The University of Texas Brownsville (UTB) began as an extension campus of UTPA, and was authorized by the Texas Legislature as a new university in the UT System in 1991. At that time UTB established a partnership with Texas Southmost College District, which continued for 20 years, until 2011 when the decision was made to end the partnership in 2015. 

 

The main campus of UTB is currently co-located with Texas Southmost College at 80 Fort Brown in Brownsville, Texas.  UTB also offers courses and programs at the Texas State Technical College Harlingen Multi Institution Teaching Center, which is located on the TSTC campus in Harlingen.  At present, UTB offers 47 baccalaureate degree programs, 29 master’s degree programs, and 1 doctoral degree program.  UTB is organized into seven academic units:  University College, College of Education, College of Liberal Arts, College of Science, Mathematics, and Technology, School of Business, College of Biomedical Sciences and Health Professions, and College of Nursing. UTB’s FY 2012 budget was $165,225,902, and the institution reported having 598 faculty (UTB shares staff with its college partner, so no separate figure is available for the number of UTB staff).

 

In fall 2012, UTB had a headcount of 8,146 students: 6,980 undergraduates and 1,166 post-baccalaureate and graduate students; its full-time student equivalency (FTSE) was 5,611. The demographic breakdown of UTB’s headcount enrollment for fall 2012 is shown in Table 2.


 

Table 2. UT Brownsville – Student Enrollment

Total Headcount

8,146

White Students

453

African American Students

52

Hispanic Students

7,050

Asian Students

80

International Students

478

Other Students

33

Male Students

3,343

Female Students

4,803

Students under 18 years of age

231

Students between 18 and 21 years of age

3,318

Students between 22 and 24 years of age

1,456

Students between 25 and 29 years of age

1,153

Students between 30 and 34 years of age

712

Students 35 years of age and older

1,276

Source: Coordinating Board, Higher Education Accountability System.

 

South Texas Region

 

The Lower Rio Grande Valley is a four-county area that forms the southernmost tip of Texas and includes Cameron, Hidalgo, Starr, and Willacy Counties. These counties occupy almost 4,300 square miles and include the rapidly growing metropolitan areas of Rio Grande City, McAllen, Harlingen, and Brownsville. Hidalgo has been identified as one of the fastest-growing counties in the United States. Its population in 2010 was 774,769, a 35 percent increase from 2000. The four-county area population is projected to continue to grow, as shown in Table 3.

Table 3. Hidalgo, Starr, Willacy and Cameron Counties

Population and Projected Growth

 

2010

2015

2020

Rate of Growth 2010-2015

Rate of Growth  2010-2020

Hidalgo

774,769

833,007

895,259

7.5%

15.5%

Starr

60,968

66,703

72,980

9%

20%

Willacy

22,134

23,340

24,595

5%

11%

Cameron

406,220

435,001

465,569

7%

14.6%

Statewide

25,145,561

26,295,613

27,373,633

4.5%

8.8%

Source:  Texas State Demographer projected growth[3] 

         

Need for Medical School in Region

 

Many parts of the Lower Rio Grande Valley lack adequate health care services, and the fast-growing population stretches the available health care resources. The establishment of a new medical school in Harlingen, an evolution in the development of the existing Lower Rio Grande Valley Regional Academic Health Center, could alleviate some of the health care needs of the region. The four counties that comprise the Lower Rio Grande Valley are federally designated Mental Health Professional Shortage Areas (HPSA).  Additionally, in 2008, the county of Starr received federal designation as a whole county HPSA, which means there are more residents in the county than the available health professionals can serve.  A portion of Cameron is designated as a partial county HPSA.

 

In order to understand the distribution of physicians in a region, the number of physicians per 100,000 is the standard reference. The number of primary care physicians, which includes family physicians, internists, obstetric/gynecologists, and pediatricians, to the general population varies by region. The ratio is greater in the Metroplex, Central Texas, and Gulf Coast regions. While the South Texas region shows 65 physicians per 100,000 population, if Bexar County is removed from the region, the primary care physician per 100,000 population decreases to 43 per 100,000 population, making it the area of Texas with the lowest primary care physician to population ratio.

 

The establishment of a new medical school would provide students from the region with an opportunity to attend medical school nearby. Additionally, the development of graduate medical education in the region would be needed to continue to provide clinical opportunities for the new students and medical residents. The state’s commitment to the existing health-related institutions should not be reduced as a result of the development of the new medical school in South Texas.

 

Recognition by the Texas Higher Education Coordinating Board to Offer Degrees

 

If the merger of UTPA and UTB occurs, then the new institution would be required to establish a new degree program inventory, which would likely combine the existing program offerings. The new institution would also need to develop and implement new reporting mechanisms. Any new degree programs, consolidations and administrative changes would need Coordinating Board approval.

 

Southern Association of Colleges and Schools Commission on Colleges Accreditation Process

 

Statutory authority would be required for the new institution to begin awarding degrees. The new institution would need to apply for accreditation from the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC), the regional accrediting body for Texas institutions. The process of obtaining full accreditation can take up to seven years. During that period, the new UT component institution would provide evidence of appropriate resources for candidate status. The institution would then submit a self-study and have a site visit which would determine if full accreditation would be granted.

    

Final Considerations

 

The merger of two existing public universities, that are geographically separated could strengthen the merged institutions’ programmatic and research profile. The UT System Board of Regents approved spending $100 million over ten years to transform the Regional Academic Health Center into the proposed South Texas School of Medicine. Additionally, the UT Health Science Center San Antonio (UTHSC SA) has provided support for the eventual establishment of a South Texas medical school since 2002 with the development of the Lower Rio Grande Valley RAHC. Since that time more than 1,000 medical students have completed a portion of their clinical education at the RAHC. UTHSC SA requested $40.9 million for the 2014-2015 biennium to support the RAHC, which will transition to the South Texas Medical School.

 

There is documented need for additional medical services in the South Texas/Lower Rio Grande Valley and the transformation of the existing RAHC into a medical school could help alleviate the challenging medical shortages currently facing the area. Building and operating the medical school would require a significant investment of state resources, both initially during the construction phase and as an ongoing expense.  Furthermore, given the expense of state medical school training and the ratio of newly trained medical residents to residency positions available in Texas, it would be inefficient for the state to train additional doctors at this proposed facility without making provisions for the creation of more residency slots. 

           


[1] THECB Online Resume for UTPA

[2] UTPA website



Source Agencies:
781 Higher Education Coordinating Board
LBB Staff:
UP, KK, SK