HBA-MPM H.B. 3348 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3348
By: Turner, Bob
Higher Education
4/7/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, general revenue funding for the 35 general academic teaching
institutions in Texas is based on recommended formula funding for each
institution, less its estimated educational and general (E&G) revenue,
which is derived mostly from tuition and fees, for each fiscal year of the
biennium.  Underestimated E&G revenues may trigger excessively large
general revenue appropriations, however, the state has no effective
mechanism to monitor actual E&G revenues or a process to adjust their
general revenue appropriations accordingly. 

H.B. 3348 requires the office of the comptroller of public accounts
(comptroller) and the Texas Higher Education Coordinating Board to
prescribe a mechanism for each institution to reconcile the differences
between estimated E&G revenues used in the budget process and actual E&G
revenues collected and to report that information to the comptroller's
office and the Legislative Budget Board within 60 days after the end of the
fiscal year.  This bill further prohibits an institution from spending
general appropriations equal to that amount in the next fiscal year without
the Legislative Budget Board's approval, if an institution's E&G income
exceeds its estimate. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 61.065, Education Code, by adding Subsections
(c) and (d), as follows: 

(c)  Requires the comptroller of public accounts (comptroller) and the
Texas Higher Education Coordinating Board (board) to jointly prescribe and
periodically update a uniform system of financial accounting of all
educational and general funds received by an institution of higher
education.  Provides that these funds include tuition, laboratory fees,
student teaching fees, organized activities, proceeds from the sale of
educational and general equipment, and indirect cost recovery fees received
by the institution.  Provides that this system may require: 

_any portion of educational and general funds received to be deposited in
the treasury; 
_all educational and general funds to be accounted for in a manner allowing
the state auditor to accurately and efficiently audit an institution's
educational and general funds; and  
_each institution to reconcile any estimated educational and general funds
calculated during the previous biennial budget process to the actual amount
of educational and general funds that the institution received. 

(d)  Requires each institution to report its reconciliation under
Subsection (c) to the comptroller and the Legislative Budget Board no later
than 60 days after the last day of each fiscal year.  Prohibits the amount
of the institution's general revenue appropriations equal to the difference
of the exceeded estimate of the educational and general funds received in
that fiscal year, if an excess exists,  from being expended by the
institution in the following fiscal year without prior approval of the
Legislative Budget Board.  

SECTION 2.  Authorizes the comptroller and the board to adopt a uniform
system of accounting described by Section 61.065(c), Education Code, as
added by this Act, no later that September 1, 1999. 

SECTION 3.Emergency clause.
  Effective date: upon passage.