Supplement: TX SB1055 | 2023-2024 | 88th Legislature | Fiscal Note (Introduced)
For additional supplements on Texas SB1055 please see the Bill Drafting List
Bill Title: Relating to the creation of a new university in Nacogdoches, Texas, within The University of Texas System and the allocation of the annual constitutional appropriation to certain agencies and institutions of higher education; abolishing Stephen F. Austin State University.
Status: 2023-05-10 - See remarks for effective date [SB1055 Detail]
Download: Texas-2023-SB1055-Fiscal_Note_Introduced_.html
Bill Title: Relating to the creation of a new university in Nacogdoches, Texas, within The University of Texas System and the allocation of the annual constitutional appropriation to certain agencies and institutions of higher education; abolishing Stephen F. Austin State University.
Status: 2023-05-10 - See remarks for effective date [SB1055 Detail]
Download: Texas-2023-SB1055-Fiscal_Note_Introduced_.html
| 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 to General Revenue Related Funds |
|---|---|
| 2024 | $11,277,793 |
| 2025 | $11,277,793 |
| 2026 | $0 |
| 2027 | $0 |
| 2028 | $0 |
All Funds, Five-Year Impact:
| Fiscal Year | Probable Savings from General Revenue Fund 1 |
|---|---|
| 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: | 720 The University of Texas System Administration, 755 Stephen F. Austin State University, 781 Higher Education Coordinating Board |
| LBB Staff: | JMc, MOc, JSM, GO, NV, CFl |
