Bill: HB 2753, 83(R) - 2013

Bill Caption

Relating to excellence funding for certain health-related institutions of higher education.

Fiscal Notes

Estimated Two-year Net Impact to General Revenue Related Funds for HB2753: a negative impact of ($6,200,000) through the biennium ending August 31, 2015. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. No fiscal implication to units of local government is anticipated. In order for the participating institutions to not experience a net loss after their transfer of no less than $2.5 million into the Excellence Fund, state appropriations into the Excellence Fund will be required each biennium. For purposes of this analysis, it is assumed that there would be a minimum appropriation of $6.2 million in General Revenue each biennium to implement the provisions of the bill. It is also assumed that the transfers from the participating institutions will range from $2.5 million to $35.0 million each biennium. No fiscal implication to units of local government is anticipated.

Bill Analysis

Summary: HB 2753 would establish an Excellence Fund for public health-related institutions with the purpose to provide additional funding for medical institutions that are seeking appropriations beyond what is allocated through student enrollment funding. To begin the Fund, each medical institution would have to transfer $2.5 million into the Fund. Then, each school would receive funds based on their ranking in a point system that takes into account various criteria measures. Once the initial source of funding is used, additional funding would need to be appropriated from General Revenue.

Analysis: HB 2753 would expand the scope of government by creating a fund that would require additional appropriations. While we approve incentivizing research excellence in health-related institutions, we oppose further burdening taxpayers. Therefore, we would approve the Excellence Fund concept for the 83^rd Legislative Session since it allows the medical schools to voluntarily participate by using their non-formula funding that is appropriated to the Fund. The institutions, however, would need to continue using their non-formula funding and not seek future formula funding that would burden taxpayers. Instead, the schools should look for ways to prioritize their budgets based on current funding as well as seek private funding to make up unmet expenses. Therefore, at this time, due to non-formula funding, we stand neutral on 2753.

 

Source URL (retrieved on 04/24/2024 05:04 PM): http://reports.texasaction.com/bill/83r/hb2753?print_view=true