General Academic Institutions »

The 80th Legislature increases general revenue funding for the general academics by $456 million over the 2006-07 biennium, which represents an 11.7 percent increase.  The table immediately below itemizes the funding for the A&M System academic institutions.  Following the table, the changes in formula funding and non-formula funding for all the general academics are described. 

A&M System General Academic Institutions
General Revenue Funds
House Bill 1 Appropriations for 2008-09
Compared to 2006-07 Expended/Budgeted Level

General Academics  2008-09 * Change % Change
Texas A&M University $ 488,216,320 $ 50,893,325 11.6 %
Texas A&M Univ. at Galveston 32,258,912 9,215,124 40.0 %
Prairie View A&M University 108,144,364 971,084 0.9 %
Tarleton State University 81,287,147 18,094,272 28.6 %
Texas A&M University – Corpus Christi 95,846,689 9,020,474 10.4 %
Texas A&M University - Kingsville 79,861,101 8,785,219 12.4 %
Texas A&M International University 78,894,302 12,373,294 18.6 %
West Texas A&M University 60,273,214 4,169,334 7.4 %
Texas A&M – Commerce 66,623,023 5,782,531 9.5 %
Texas A&M – Texarkana 32,884,077 13,023,170 65.6 %
A&M System Academics   $ 1,124,289,149 $132,327,827 13.3 %

 

Formula Funding:
Funding increases to the general academic formulas totals approximately $92 million.  Over $50 million of the total increase is to cover enrollment growth between the last base period and the current base period, including the spring 2007 semester.   The Legislature added $26.2 million specifically to cover enrollment growth in the base bill.  However, when the formulas were updated to include the spring semester $66 million in additional funding was added to the bill; it is estimated that over $25 million of those additional funds are necessary to cover the enrollment growth associated with updating to the spring 2007 semester.

The legislature continues to use the relative cost-based matrix weights.  These cost-based weights use the average of the most recent three years of expenditure data available and phase the new rates in 75 percent.  In 2006-07 the weights used for certain levels of Nursing and Allied Health program areas were inflated to hold all institutions harmless to a 3 percent loss from the matrix changes.  For the 2008-09 biennium, the rates used are the straight cost-based calculation with no hold harmless built into the weights. 

All academics, except UT Austin, are held harmless to 100 percent of their 2006-07 general revenue formula funding level.  Hold harmless funding is provided to 10 institutions and totals $33.3 million, which is an increase in hold harmless funding over 2006-07 of $23.7 million.   A&M System institutions that receive hold harmless are Prairie View A&M University ($3.1 million) and A&M – Texarkana ($0.1 million). 

A new funding methodology is used for Texas A&M University at Galveston to account for the special purpose nature of their marine sciences programs.  This action results in an increase in formula funding of approximately $900,000 for A&M Galveston.  This new methodology moves approximately $6.8 million in special items that were related to the special purpose mission of the institution into the formulas.  These items are:  1) Marine and Maritime Instructional Enhancement, 2) Dredging of Dock Area, 3) Ship Operation and Maintenance, and 4) Marine Terminal Operations.  Additionally, the methodology funds the Coordinating Board estimated projected square feet associated with the new training ship. 

A&M System General Academic Institutions
Formula and Formula Hold Harmless
General Revenue Funds
2008-09 Compared to 2006-07

General Academics  2008-09 Change % Change
Texas A&M University 413,753,397 34,302,164 9.0 %
Texas A&M Univ. at Galveston 16,560,082 8,407,770 103.1 %
Prairie View A&M University 49,268,377 1 0.0 %
Tarleton State University 46,779,075 2,739,854 6.2 %
Texas A&M University – Corpus Christi 45,839,774 2,246,620 5.2 %
Texas A&M University - Kingsville 40,417,089 346,276 0.9 %
Texas A&M International University 23,376,656 3,116,073 15.4 %
West Texas A&M University 36,912,008 887,230 2.5 %
Texas A&M – Commerce 51,485,510 1,798,273 3.6 %
Texas A&M – Texarkana 8,481,504 0 0.0 %
A&M System Academics $ 732,873,472   $ 53,844,261 7.9%
All Academics $ 3,024,167,892   $ 116,771,341 4.0 %

Non-Formula:
Non-formula items include tuition revenue bond debt service, all special items, Institutional Enhancement, Research Development Fund, Competitive Knowledge Fund, Workers’ Compensation Insurance/ Unemployment Compensation Insurance, Excellence, and Office of Civil Rights Priority Plan.

Tuition Revenue Bond Debt Service
The 80th Legislature funds an increase of $241.4 million in TRB debt service for the general academic institutions including the new tuition revenue bonds authorized by House Bill 153, Seventy-ninth Legislature, 3rd Called Session.  Of these amounts, a total of $5.6 million is for debt service in FY2009 for tuition revenue bonds for the System Centers in Central Texas and San Antonio.  The debt service for the system centers is contingent upon the centers meeting statutory enrollment thresholds of 1000 FTE students for one semester.

Incentive Funding
Legislature adopted a new Higher Education Performance Incentive Initiative.  At the beginning of the session, Governor Perry proposed a number of broad changes in higher education funding, including a very detailed incentive funding plan.  The legislature combined three existing programs and a new $100 million incentive program into this incentive initiative.  The initiative program includes:

  1. Higher Education Performance Incentive Initiative:  $100 million.  The legislature provides $100 million in new General Revenue Funds to the Higher Education Coordinating Board (CB) for incentive funding.  The CB in conjunction with the Governor's Office is directed to develop an incentive program for improving teaching and educational excellence at the general academics.
  2. Texas Competitive Knowledge Fund: $93.2 million.  The legislature developed a new Texas Competitive Knowledge Fund (CKF) to support faculty for the purpose of instructional excellence and research.  Institutions with total research expenditures of $50 million are eligible for this new fund.  $27 million in new funding is added and $66 million in existing funds is redirected to the CKF.
    • $40m for Texas A&M University’s Faculty Reinvestment is redirected to the new fund, resulting in a net increase of $0.5 million.
    • $16.2 for UT Austin is redirected, resulting in a net increase of $23.2 million.
    • Texas Tech and University of Houston, who are also eligible, each have $5 million redirected to the fund.  UH has a net increase of $3.2 million and Tech has a net increase of $100,000.
  3. Research Development Fund:  $38 million increase.  This increase almost doubles the Research Development Fund (RDF).  All institutions except UT Austin, Texas A&M University and Prairie View A&M University are eligible for the RDF, and
  4. Professional Nursing Shortage Reduction Program:  $9 million increase.

System Centers
New funding for the system centers includes $6.7 million for operations for the A&M System Center - San Antonio and $8,231,012 for operations for the A&M System Center - Central Texas.  This brings the total operations funding for each system center to $10 million for the biennium.  The University of North Texas also received $2,000,000 for operations of the UNT System Center at Dallas.

Special Items 
New special items are funded in two places in the appropriations bill -- $18.9 million in special items are funded directly in each general academic’s bill pattern and $48.3 million in special items for general academics and system offices are funded in Section 54 of the Article III Special Provisions.  In general, special items that were added during the House and Senate markup are those that are in the bill patterns of the institutions.   These items include:

  • UT Austin:      
    • $3,000,000 for the McDonald Observatory
    • $362,500 for the Garner Museum
  • UT Permian Basin
    • $9,000,000 for Instructional Enhancement
    • $500,000 for the Performing Arts Center
  • Texas A&M International:   $2,000,000 for Faculty Enhancement
  • University of Houston System:   $521,762 for Aerospace Scholars program.
  • University of North Texas System:    $200,000 for the Federation of North Texas Area Universities consortium
  • Texas Tech University:   $100,000 for the Vietnam Center
  • Texas Woman's University:  $715,200 for online nursing education
  • Sam Houston State University: $500,000 for Forensic Science Commission
  • Texas State University -San Marcos:  $2,000,000 for nursing program start-up

Special items added by the conference committee are funded in Article III Special Provisions.  Of the $48.3 million in special items that are in the Article III Special Provisions, $20.3 million were vetoed by the Governor and are noted below.  These items include: 

  • UT Austin:  Marine Science Institute ($2 million)
  • UT Dallas:  Science Engineering and Math ($2 million)
  • UT San Antonio San Antonio Life Science Institute ($3 million) VETOED
  • UT – Tyler:  Institutional Enhancement ($1.5million)
  • Texas A&M University:   Summer School ($3 million)
  • Prairie View A&M University:
    • Agriculture Match ($4 million)
    • Community Development ($100,000)
  • Texas A&M University Kingsville:  Wildlife Research ($62,080)
  • Texas A&M International University:  Student Success ($5,000,000) VETOED
  • West Texas A&M University:  Engineering Program ($5,000,000) VETOED
  • University of Houston – Victoria:   Master's Degree in Nursing ($1,100,000)
  • University of Houston:  Wind Energy ($5,000,000)
  • Texas Tech University:  Institutional Enhancement ($5,200,000)
  • Angelo State University:
    • Institutional Enhancement ($1,000,000)
    • Museum of Fine Arts ($300,000) VETOED
  • Texas State University - San Marcos:  School Safety Center ($3,000,000)
  • Texas State University System:  System Operations ($1,733,504) VETOED
  • Texas Tech University System:  System Operations ($3,169,907) VETOED
  • University of Houston System:  System Operations ($473,787) VETOED
  • University of North Texas System:  System Operations ($1,632,060) VETOED

In addition, the Legislature added $1.7 million in funding to the Small Business Development Centers, including funding for two new sub-centers:  $200,000 at Tarleton State University and $300,000 for Texas A&M International University.

Academic Development Initiative
The 80th Legislature provided the additional funds necessary to complete the state’s 6-year, $75 million per institution, commitment in the Office of Civil Rights priority plan.  This resulted in $5.5 million for Texas Southern and $0.5 million for Prairie View A&M University.  Additionally, the Legislature provided $15 million to Prairie View A&M for the Academic Development Initiative in House Bill 1 and $10 million for the Academic Development Initiative in HB15.  For Texas Southern the total $25 million for the Academic Development Initiative funding was all provided in House Bill 15 and is contingent upon the adoption of a recovery plan.   These funds are intended to provide for the continued development and implementation of the academic programs begun under the OCR Priority Plan.