LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 14, 2025 TO: Honorable Terry M. Wilson, Chair, House Committee on Higher Education FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB5150 by Louderback (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 HB5150, 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. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2026($2,500,000)2027($2,500,000)2028$02029$02030$0All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund12026($2,500,000)2027($2,500,000)2028$02029$02030$0 Fiscal AnalysisThe 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.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 14, 2025
TO: Honorable Terry M. Wilson, Chair, House Committee on Higher Education FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB5150 by Louderback (Relating to the transfer of the University of Houston--Victoria to The Texas A&M University System.), As Introduced
TO: Honorable Terry M. Wilson, Chair, House Committee on Higher Education
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB5150 by Louderback (Relating to the transfer of the University of Houston--Victoria to The Texas A&M University System.), As Introduced
Honorable Terry M. Wilson, Chair, House Committee on Higher Education
Honorable Terry M. Wilson, Chair, House Committee on Higher Education
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB5150 by Louderback (Relating to the transfer of the University of Houston--Victoria to The Texas A&M University System.), As Introduced
HB5150 by Louderback (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 HB5150, 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.
Estimated Two-year Net Impact to General Revenue Related Funds for HB5150, 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.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
2026 ($2,500,000)
2027 ($2,500,000)
2028 $0
2029 $0
2030 $0
All Funds, Five-Year Impact:
2026 ($2,500,000)
2027 ($2,500,000)
2028 $0
2029 $0
2030 $0
Fiscal Analysis
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 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.
Methodology
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.
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.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts, 327 Employees Retirement System, 454 Department of Insurance, 710 Texas A&M University System Administrative and General Offices, 781 Higher Education Coordinating Board, 783 University of Houston System Administration
304 Comptroller of Public Accounts, 327 Employees Retirement System, 454 Department of Insurance, 710 Texas A&M University System Administrative and General Offices, 781 Higher Education Coordinating Board, 783 University of Houston System Administration
LBB Staff: b > td > JMc, FV, LBO, CBR, CMA, NV
JMc, FV, LBO, CBR, CMA, NV