LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
 
May 30, 2015

TO:
Honorable Dan Patrick, Lieutenant Governor, Senate
Honorable Joe Straus, Speaker of the House, House of Representatives
 
FROM:
Ursula Parks, Director, Legislative Budget Board
 
IN RE:
SB1191 by Seliger (Relating to the amount and allocation of the annual constitutional appropriation to certain agencies and institutions of higher education. ), Conference Committee Report



Estimated Two-year Net Impact to General Revenue Related Funds for SB1191, Conference Committee Report: a negative impact of ($131,250,000) through the biennium ending August 31, 2017, assuming the funding contingency is met; if it is not met, the bill would have no fiscal impact.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2016 $0
2017 ($131,250,000)
2018 ($131,250,000)
2019 ($131,250,000)
2020 ($131,250,000)




Fiscal Year Probable Savings/(Cost) from
General Revenue Fund
1
2016 $0
2017 ($131,250,000)
2018 ($131,250,000)
2019 ($131,250,000)
2020 ($131,250,000)

Fiscal Analysis

The bill would amend the Education Code relating to the amount and allocation of the annual constitutional appropriation to certain agencies and institutions of higher education. The bill would reallocate Higher Education Fund appropriations between eligible recipient institutions in fiscal year 2016 and would increase the annual constitutional appropriation for the Higher Education Fund from $262,500,000 each fiscal year to $393,750,000 in each fiscal year beginning in fiscal year 2017.

The bill would make the increase in the annual Higher Education Fund appropriation beginning in fiscal year 2017 contingent on the Eighty-fourth Legislature, Regular Session, 2015, amending Section 62.024 of the Education Code to increase the annual Higher Education Fund appropriation. If the Eighty-fourth Legislature, Regular Session, 2015, does not amend statute to increase the annual Higher Education Fund appropriation, the bill would reallocate the Higher Education Fund appropriations between eligible recipient institutions and would maintain the annual constitutional appropriation for the Higher Education Fund at $262,500,000 in General Revenue each fiscal year.

Methodology

The current annual appropriation level for the Higher Education Fund is $262,500,000. The bill would increase the annual allocation to $393,750,000 beginning in fiscal year 2017, which would result in an annual cost of $131,250,000 in General Revenue. This analysis assumes the Eighty-fourth Legislature, Regular Session, 2015, would amend statute to increase the appropriation for the Higher Education Fund to $393,750,000 beginning in fiscal year 2017.

If the Eighty-fourth Legislature, Regular Session, 2015, does not amend statute to increase the appropriation for the Higher Education Fund beginning in fiscal year 2017, the bill would have no fiscal impact. 

Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
783 University of Houston System Administration, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration, 758 Texas State University System, 768 Texas Tech University System Administration, 769 University of North Texas System Administration, 781 Higher Education Coordinating Board
LBB Staff:
UP, EMu, DEH, ED, JBi