83(R) - 2013
Relating to the establishment of a pharmacy school at The University of Texas at Tyler.
No significant fiscal implication to the State is anticipated. Due to the bill's prohibition on formula funding, the primary means of state support for institutions, state costs are anticipated to be limited. However, state support via special item or Tuition Revenue Bond support could yield state costs.
The bill would not prohibit the use of the Available University Fund for capital expenses or General Revenue funding for special item and tuition revenue bond debt service. General Revenue special item funding has been provided for new schools, programs, and degrees in the range of $500,000 to $3,000,000 per year. General Revenue funding for tuition revenue bond debt service for a new building could range from $2,000,000 to $8,000,000 per year depending on the cost of the building. General Academic Institutions who are appropriated formula funding for pharmacy students receive approximately $12,000 to $16,000 for each full-time student equivalent in General Revenue and General Revenue Dedicated (statutory tuition).
No fiscal implication to units of local government is anticipated.
Summary: SB 566 would allow The University of Texas at Tyler to establish a pharmacy school. This legislation would not allow formula funding for instruction, operations, or infrastructure. Instead, funding would have to come from tuition, gifts, grants, and other institutional or system funds.
Analysis: SB 566 would create a new pharmacy school. While this legislation prohibits the use of formula funding for the school, the Legislature can not bind the hands of future Legislatures and there is nothing to prevent a future legislature from removing the prohibition. This legislation would create a new school at a state university that would certainly require state funding in the future. Due to the future costs that will be required to support this new school, we oppose SB 566.