Bill

HB 257

83(R) - 2013
Education

Vote Recommendation

No
  • Neutral
  • Neutral
  • Neutral
  • Negative
  • Neutral

Author(s)

Naomi Gonzalez

Bill Caption

Relating to the creation of the Texas Tech University Health Sciences Center at El Paso as a component institution of the Texas Tech University System.

Fiscal Notes

No significant fiscal implication to the State is anticipated. At such time as the institution becomes operational, state costs associated with formula funding, as detailed below, will be realized. No fiscal implication to units of local government is anticipated. The Texas Tech University Health Sciences Center reports that the new costs associated with the areas of administration, accreditation, and technology are estimated to be $20.5 million over the next five years and would be absorbed by Texas Tech University Health Sciences Center. The only additional formula costs assumed are related to the Research Enhancement formula, which provides each health related institution a base funding amount of $1,412,500 each year plus 1.1 percent of its reported research expenditures. Assuming the new institution begins directly receiving formula funding in 2016, the five-year formula costs are estimated to be $4.2 million.

Bill Analysis

Summary: Under current law, Texas Tech Health Center in El Paso is a part of the Texas Tech University System where it operates under the Texas Tech Health Center in Lubbock. HB 257 changes this operational structure by allowing the Center in El Paso to function as an autonomous medical school under the Texas Tech University System. Currently, the Center in El Paso receives funding as a budget line item under the Texas Tech University System. HB 257 will enable constitutional formula funding from the Permanent University Fund (PUF) which is allocated based on how many students enroll in the medical school. Furthermore, the need may arise for research funding which is optional and based on the legislature's future support.

Analysis: HB 257 expands the scope of government by making an administrative change that will lead to the need for more funding constitutionally required from PUF; therefore, increasing taxes in the long run. We do not see a compelling state interest to expend the funds necessary to operate an independent medical school in El Paso, when the Texas Tech University System in Lubbock currently operates a Center in El Paso. We oppose HB 257.