LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION March 19, 2025 TO: Honorable Brandon Creighton, Chair, Senate Committee on Education K-16 FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB37 by Creighton (Relating to the governance of public institutions of higher education, including review of curriculum and certain degree and certificate programs, the powers and duties of a faculty council or senate, training for members of the governing board, and the establishment of the Office of Excellence in Higher Education.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB37, As Introduced: a negative impact of ($4,235,960) 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($2,667,980)2027($1,567,980)2028($1,567,980)2029($1,567,980)2030($1,567,980)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 20252026($2,667,980)9.02027($1,567,980)9.02028($1,567,980)9.02029($1,567,980)9.02030($1,567,980)9.0 Fiscal AnalysisThe bill would require the governing board of each institution of higher education to appoint a general education review committee at each institution of higher education under the governing board's control and management that would be required to annually review the core curriculum at the institution and make recommendations to the governing board regarding maintaining or eliminating courses in the institution's core curriculum. The bill would establish that only the governing board of an institution of higher education may establish a faculty council or senate at the institution and would establish provisions related to the powers and duties of such. The bill would also establish provisions relating to the review of curriculum and certain minor degree and certificate programs, training for members of a governing board, and the required submission of certain information to the legislature and the Higher Education Coordinating Board before an institution may spend money appropriated to the institution.The bill would establish the Office of Excellence in Higher Education which would be administratively attached to the Higher Education Coordinating Board and serve as an intermediary between the legislature, the public, and institutions of higher education. The office would be responsible for receiving and, as necessary, investigating reports of noncompliance by institutions of higher education with state law or institution policy and would be required to submit an annual report regarding the number of noncompliance reports received by the office, the number of investigations conducted by the office, and a summary of investigations.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
March 19, 2025
TO: Honorable Brandon Creighton, Chair, Senate Committee on Education K-16 FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB37 by Creighton (Relating to the governance of public institutions of higher education, including review of curriculum and certain degree and certificate programs, the powers and duties of a faculty council or senate, training for members of the governing board, and the establishment of the Office of Excellence in Higher Education.), As Introduced
TO: Honorable Brandon Creighton, Chair, Senate Committee on Education K-16
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB37 by Creighton (Relating to the governance of public institutions of higher education, including review of curriculum and certain degree and certificate programs, the powers and duties of a faculty council or senate, training for members of the governing board, and the establishment of the Office of Excellence in Higher Education.), As Introduced
Honorable Brandon Creighton, Chair, Senate Committee on Education K-16
Honorable Brandon Creighton, Chair, Senate Committee on Education K-16
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB37 by Creighton (Relating to the governance of public institutions of higher education, including review of curriculum and certain degree and certificate programs, the powers and duties of a faculty council or senate, training for members of the governing board, and the establishment of the Office of Excellence in Higher Education.), As Introduced
SB37 by Creighton (Relating to the governance of public institutions of higher education, including review of curriculum and certain degree and certificate programs, the powers and duties of a faculty council or senate, training for members of the governing board, and the establishment of the Office of Excellence in Higher Education.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB37, As Introduced: a negative impact of ($4,235,960) 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 SB37, As Introduced: a negative impact of ($4,235,960) 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 ($2,667,980)
2027 ($1,567,980)
2028 ($1,567,980)
2029 ($1,567,980)
2030 ($1,567,980)
All Funds, Five-Year Impact:
2026 ($2,667,980) 9.0
2027 ($1,567,980) 9.0
2028 ($1,567,980) 9.0
2029 ($1,567,980) 9.0
2030 ($1,567,980) 9.0
Fiscal Analysis
The bill would require the governing board of each institution of higher education to appoint a general education review committee at each institution of higher education under the governing board's control and management that would be required to annually review the core curriculum at the institution and make recommendations to the governing board regarding maintaining or eliminating courses in the institution's core curriculum. The bill would establish that only the governing board of an institution of higher education may establish a faculty council or senate at the institution and would establish provisions related to the powers and duties of such. The bill would also establish provisions relating to the review of curriculum and certain minor degree and certificate programs, training for members of a governing board, and the required submission of certain information to the legislature and the Higher Education Coordinating Board before an institution may spend money appropriated to the institution.The bill would establish the Office of Excellence in Higher Education which would be administratively attached to the Higher Education Coordinating Board and serve as an intermediary between the legislature, the public, and institutions of higher education. The office would be responsible for receiving and, as necessary, investigating reports of noncompliance by institutions of higher education with state law or institution policy and would be required to submit an annual report regarding the number of noncompliance reports received by the office, the number of investigations conducted by the office, and a summary of investigations.
Methodology
It is assumed that costs associated with the creation of the general education review committees, duties of the faculty council or senate, review of creating degree programs, and training of board members could be absorbed within existing resources. Based on information provided by the Higher Education Coordinating Board, nine FTEs would be necessary for the creation of the Office of Excellence in Higher Education, including one Commissioner of the Office of Excellence, one Legal Secretary, one Legal Assistant, two Attorneys, one Systems Analyst, and three Investigators. The total salary and retirement costs for these FTEs would total approximately $1,201,915 per fiscal year beginning in fiscal year 2026. Other operating expenses, primarily for supplies, travel and training for the FTEs would be approximately $95,519 per year. There would be a one-time construction cost of $100,000 in fiscal year 2026 to house staff.
Based on information provided by the Higher Education Coordinating Board, nine FTEs would be necessary for the creation of the Office of Excellence in Higher Education, including one Commissioner of the Office of Excellence, one Legal Secretary, one Legal Assistant, two Attorneys, one Systems Analyst, and three Investigators. The total salary and retirement costs for these FTEs would total approximately $1,201,915 per fiscal year beginning in fiscal year 2026. Other operating expenses, primarily for supplies, travel and training for the FTEs would be approximately $95,519 per year. There would be a one-time construction cost of $100,000 in fiscal year 2026 to house staff.
Technology
The Higher Education Coordinating Board estimates a one-time cost of $1,000,000 in fiscal year 2026 to build out a secure data and tracking system and $270,546 in on-going technology costs.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 300 Trusteed Programs Within the Office of the Governor, 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 710 Texas A&M University System Administrative and General Offices, 717 Texas Southern University, 719 Texas State Technical College System Administration, 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, 783 University of Houston System Administration, 966 Howard College, 978 San Jacinto College
300 Trusteed Programs Within the Office of the Governor, 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 710 Texas A&M University System Administrative and General Offices, 717 Texas Southern University, 719 Texas State Technical College System Administration, 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, 783 University of Houston System Administration, 966 Howard College, 978 San Jacinto College
LBB Staff: b > td > JMc, FV, LBO, GO, NV
JMc, FV, LBO, GO, NV