Health Related Institutions »

The 79th Legislature increased funding for the health related institutions by $168.9 million over the 2004-05 biennium which represents an 9.2 percent increase in General Revenue. The changes in formula funding and non-formula funding are described below. The table below itemizes the funding for each of the health related institutions.

Health Related Institutions
General Revenue Funds, in millions
Senate Bill 1 Appropriations for 2006-07
Compared to 2004-05 Expended/Budgeted Level
Health Related Institutions 2006-07 Change % Change
UT Southwestern $ 259,008,428 $ 57,069,248 28.3 %
UTMB 438,291,032 10,138,571 2.4 %
UTHSC – Houston 261,574,351 17,757,271 7.3 %
UTHSC - San Antonio 258,036,653 11,549,539 4.7 %
MD Anderson 288,772,298 20,488,595 7.6 %
UT HC Tyler 65,889,470 1,295,164 2.0 %
A&M HSC 124,214,168 10,928,409 9.6 %
UNT HSC 96,964,971 12,355,206 14.6 %
Texas Tech HSC 215,499,059 27,305,594 14.5 %
Total, All Health Related Institutions $2,008,250,430 $ 168,887,597 9.2 %
Formulas
  • The 5 percent reduction that was mandated in the LAR was fully restored.
  • The Legislature provided $18.3 million in new general revenue funding to cover a 6.9 percent growth in full-time-student equivalents at the health related institutions.
  • In addition, $40 million in new GR funds was added to enhance the formulas. This funding was distributing across the three formulas as follows:
    • $30 million to Instruction
    • $5 million to Research
    • $5 million to Infrastructure
  • A new formula for graduate medical education (GME) was adopted and added $19.8 million in General Revenue. Funds are distributed to the health science centers based on each health science center’s proportionate share of residents. A provision in Article IX, General Provisions of the General Appropriations Act (SB1), directs the Comptroller of Public Accounts to reallocate the GME funds based on information provided by the Legislative Budget Board.
  • New small class supplements were provided to the A&M Health Science Center for the Institute of Biotechnology graduate biomedical class small class, the University of Texas Medical Branch at Galveston for an Austin-based medical school class, and the University of Texas Health Science Center-Houston for a Brownsville-based public health class.
Non-formula
  • Non-formula items include tuition revenue bond debt service, all special items, Institutional Enhancement, WCI/UCI, and patient care activities.
  • Tuition revenue bond debt service on existing authorized bonds was fully funded. This amounted to an increase of $43.6 million over the 2004-05 biennium for the health related institutions.
  • For the health-related institutions, the full 5 percent reduction that was mandated in the LARs was restored.
  • New special items include:
    • UT Southwestern new special items:
      • $15 million – Metroplex Comprehensive Medical Imaging Center
      • $2 million – Center for Treatment and Research on Sickle Cell Disease
    • UTMB: $5 million to support their hospital operations
    • UTHSC – Houston: $5 million for special item funding
    • MD Anderson: $10 million to support their hospital operations
    • UT-Tyler HSC: $1million to support their hospital operations
    • UTHSC-San Antonio: $3 million for Laredo extension (Art. IX)
    • Tx. Tech HSC:
      • $3 million for the Midland Residency,
      • In Art. II: $13.5 million for Midland residency building
    • UNT HSC: $3.1 million
Indirect Cost Recovery

In the 78th Legislature, HB1887 was passed which prohibited Indirect Cost Recovery funding to be used as a method of financing the formulas. Unlike the general academic institutions, indirect cost recovery funds have never been used as an offset to the general revenue in the health-related formulas, but rather 100 percent was included as a line item of appropriation. However, like the general academics in the 79th Legislature, the indirect cost recovery funds are completely eliminated from the funds appropriated in the health related institutions’ bill patterns.