TO:	Honorable Brandon Creighton, Chair, Senate Committee on Education K-16

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB2361 by Kolkhorst (Relating to the transfer of the University of Houston--Victoria to The Texas A&M University System.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for SB2361, As Introduced: a negative impact of ($5,000,000) through the biennium ending August 31, 2027.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026	($2,500,000)
2027	($2,500,000)
2028	$0
2029	$0
2030	$0

Fiscal Year	Probable Savings/(Cost) from General Revenue Fund 1
2026	($2,500,000)
2027	($2,500,000)
2028	$0
2029	$0
2030	$0

The bill would transfer the governance, control, management, and property of the University of Houston--Victoria from the board of regents of the University of Houston System to the board of regents of The Texas A&M University System. The bill would establish that tuition and fees, contracts and written obligations of every kind, the status of any student of the university enrolled at the university or the employment status or accrued benefits of any person employed by the university, and all funds that, on the effective date of the transfer, have been appropriated to the use of the University of Houston--Victoria are transferred for the use and benefit of Texas A&M University--Victoria.

Not later than June 1, 2025, the University of Houston System and The Texas A&M University System would be required to enter into a memorandum of understanding (MOU) relating to the transfer of the administration of the University of Houston--Victoria to The Texas A&M University System. The memorandum of understanding would be required to include a timetable and specific steps and methods for the transfer on September 1, 2025 of all powers, duties, obligations, rights, contracts, leases, records, real or personal property and unspent and unobligated appropriations and other funds relating to the transfer of the University of Houston--Victoria to The Texas A&M University System.

The Texas A&M University System reports that the costs to the System for the transfer of the institution to be estimated at $5.0 million in additional funding for the 2026-27 biennium. These costs are related to major data systems currently run by University of Houston System, including Human Capital Management, Student Information System, Financial Management System, and Learning Management System, which will all need to be converted.

The Texas A&M University System indicates that other costs could be identified in the future. The University of Houston System has indicated that they expect to incur locally funded costs for the separation of the campus, but the extent of these costs will only become apparent as the process progresses and the transition plan solidifies.

Any changes in fees and bonds after the transfer could have state revenue implications, but any future revenue impact cannot be determined.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


April 2, 2025