LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION March 28, 2011 TO: Honorable Judith Zaffirini, Chair, Senate Committee on Higher Education FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB557 by Duncan (Relating to the distribution of money appropriated from the national research university fund.), As Introduced No fiscal implication to the State is anticipated. The bill would amend Chapter 62 of the Education Code by specifying a new upper limit on annual distributions from the National Research University Fund (Fund 0214) and define a new allocation formula methodology for those distributions. Currently, the Texas Constitution authorizes the Legislature to appropriate up to 7 percent of the average net market value of the investment assets of the fund, provided the 10-year purchasing power of the fund corpus is preserved. The bill would stipulate that the total amount appropriated from the fund for any state fiscal year could not exceed an amount equal to 3.5 percent of the average net market value of the investment assets of the fund for the 12 consecutive state fiscal quarters ending with the last quarter of the preceding state fiscal year, as determined by the Comptroller's Office. Appropriations from Fund 0214 to eligible institutions, under current law, are based on a formula adopted by the Legislature. The bill would stipulate that of the total amount appropriated from the fund for a state fiscal year, each eligible institution would be entitled to a distribution in an amount equal to the sum of: 1) one-seventh of the total amount appropriated; and 2) an equal share of any amount remaining after the initial distributions, but not more than one-fourth of the remaining amount. The Comptroller would retain in the fund any portion of an appropriated amount remaining after all annual distributions are made and the appropriation of the retained amount would lapse at the end of the fiscal year. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:304 Comptroller of Public Accounts LBB Staff: JOB, KK, RT, JAW
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
March 28, 2011
TO: Honorable Judith Zaffirini, Chair, Senate Committee on Higher Education FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB557 by Duncan (Relating to the distribution of money appropriated from the national research university fund.), As Introduced
TO: Honorable Judith Zaffirini, Chair, Senate Committee on Higher Education
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: SB557 by Duncan (Relating to the distribution of money appropriated from the national research university fund.), As Introduced
Honorable Judith Zaffirini, Chair, Senate Committee on Higher Education
Honorable Judith Zaffirini, Chair, Senate Committee on Higher Education
John S O'Brien, Director, Legislative Budget Board
John S O'Brien, Director, Legislative Budget Board
SB557 by Duncan (Relating to the distribution of money appropriated from the national research university fund.), As Introduced
SB557 by Duncan (Relating to the distribution of money appropriated from the national research university fund.), As Introduced
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
The bill would amend Chapter 62 of the Education Code by specifying a new upper limit on annual distributions from the National Research University Fund (Fund 0214) and define a new allocation formula methodology for those distributions. Currently, the Texas Constitution authorizes the Legislature to appropriate up to 7 percent of the average net market value of the investment assets of the fund, provided the 10-year purchasing power of the fund corpus is preserved. The bill would stipulate that the total amount appropriated from the fund for any state fiscal year could not exceed an amount equal to 3.5 percent of the average net market value of the investment assets of the fund for the 12 consecutive state fiscal quarters ending with the last quarter of the preceding state fiscal year, as determined by the Comptroller's Office. Appropriations from Fund 0214 to eligible institutions, under current law, are based on a formula adopted by the Legislature. The bill would stipulate that of the total amount appropriated from the fund for a state fiscal year, each eligible institution would be entitled to a distribution in an amount equal to the sum of: 1) one-seventh of the total amount appropriated; and 2) an equal share of any amount remaining after the initial distributions, but not more than one-fourth of the remaining amount. The Comptroller would retain in the fund any portion of an appropriated amount remaining after all annual distributions are made and the appropriation of the retained amount would lapse at the end of the fiscal year.
The bill would amend Chapter 62 of the Education Code by specifying a new upper limit on annual distributions from the National Research University Fund (Fund 0214) and define a new allocation formula methodology for those distributions.
Currently, the Texas Constitution authorizes the Legislature to appropriate up to 7 percent of the average net market value of the investment assets of the fund, provided the 10-year purchasing power of the fund corpus is preserved. The bill would stipulate that the total amount appropriated from the fund for any state fiscal year could not exceed an amount equal to 3.5 percent of the average net market value of the investment assets of the fund for the 12 consecutive state fiscal quarters ending with the last quarter of the preceding state fiscal year, as determined by the Comptroller's Office.
Appropriations from Fund 0214 to eligible institutions, under current law, are based on a formula adopted by the Legislature. The bill would stipulate that of the total amount appropriated from the fund for a state fiscal year, each eligible institution would be entitled to a distribution in an amount equal to the sum of: 1) one-seventh of the total amount appropriated; and 2) an equal share of any amount remaining after the initial distributions, but not more than one-fourth of the remaining amount. The Comptroller would retain in the fund any portion of an appropriated amount remaining after all annual distributions are made and the appropriation of the retained amount would lapse at the end of the fiscal year.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, KK, RT, JAW
JOB, KK, RT, JAW