LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION March 15, 2023 TO: Honorable Brandon Creighton, Chair, Senate Committee on Education FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1055 by Nichols (Relating to the creation of a new university in Nacogdoches, Texas, within The University of Texas System; abolishing Stephen F. Austin State University.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB1055, As Introduced : a positive impact of $22,555,586 through the biennium ending August 31, 2025. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2024$11,277,7932025$11,277,7932026$02027$02028$0All Funds, Five-Year Impact: Fiscal Year Probable Savings fromGeneral Revenue Fund12024$11,277,7932025$11,277,7932026$02027$02028$0 Fiscal AnalysisThe bill would abolish Stephen F. Austin University, which is currently an independent institution, and create a new university under The University of Texas System. Under current law Stephen F. Austin is eligible to receive distributions from the Higher Education Fund, which is funded with General Revenue. The new university would be entitled to participate in the Permanent University Fund.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
March 15, 2023
TO: Honorable Brandon Creighton, Chair, Senate Committee on Education FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1055 by Nichols (Relating to the creation of a new university in Nacogdoches, Texas, within The University of Texas System; abolishing Stephen F. Austin State University.), As Introduced
TO: Honorable Brandon Creighton, Chair, Senate Committee on Education
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB1055 by Nichols (Relating to the creation of a new university in Nacogdoches, Texas, within The University of Texas System; abolishing Stephen F. Austin State University.), As Introduced
Honorable Brandon Creighton, Chair, Senate Committee on Education
Honorable Brandon Creighton, Chair, Senate Committee on Education
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB1055 by Nichols (Relating to the creation of a new university in Nacogdoches, Texas, within The University of Texas System; abolishing Stephen F. Austin State University.), As Introduced
SB1055 by Nichols (Relating to the creation of a new university in Nacogdoches, Texas, within The University of Texas System; abolishing Stephen F. Austin State University.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1055, As Introduced : a positive impact of $22,555,586 through the biennium ending August 31, 2025.
Estimated Two-year Net Impact to General Revenue Related Funds for SB1055, As Introduced : a positive impact of $22,555,586 through the biennium ending August 31, 2025.
General Revenue-Related Funds, Five- Year Impact:
2024 $11,277,793
2025 $11,277,793
2026 $0
2027 $0
2028 $0
All Funds, Five-Year Impact:
2024 $11,277,793
2025 $11,277,793
2026 $0
2027 $0
2028 $0
Fiscal Analysis
The bill would abolish Stephen F. Austin University, which is currently an independent institution, and create a new university under The University of Texas System. Under current law Stephen F. Austin is eligible to receive distributions from the Higher Education Fund, which is funded with General Revenue. The new university would be entitled to participate in the Permanent University Fund.
Methodology
Stephen F. Austin is eligible to receive $11.3 million per year in distributions from the Higher Education Fund. Under provisions of the bill, the new university would no longer be able to receive distributions from the Higher Education Fund. Included in the table above are savings associated with this change. Any estimated savings in fiscal year 2026 or afterwards due to this change cannot be determined, as the Higher Education Fund allocation methodology could be revised. Cost estimates associated with the university's eligibility to receive support from the Permanent University Fund are unknown, as The University of Texas System Board of Regents determines those distributions.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 720 The University of Texas System Administration, 755 Stephen F. Austin State University, 781 Higher Education Coordinating Board
720 The University of Texas System Administration, 755 Stephen F. Austin State University, 781 Higher Education Coordinating Board
LBB Staff: b > td > JMc, MOc, JSM, GO, NV, CFl
JMc, MOc, JSM, GO, NV, CFl