Health Related Institutions »

General Revenue Funds for Health-Related Institutions increased by $228.8 million, including the following:

Health Related Institutions
General Revenue Funds
House Bill 1 Appropriations for 2008-09
Compared to 2006-07 Expended/Budgeted Level

Health Related Institutions 2008-09 Change % Change
UT Southwestern $  297,612,887 $   39,295,604  15.2 %
UTMB 457,749,136 19,512,080 4.5 %
UTHSC – Houston 294,200,560 32,715,589 12.5 %
UTHSC - San Antonio 282,662,529 24,775,370 9.6 %
MD Anderson 305,461,019 16,924,505 5.9 %
UT HC Tyler 69,813,338 3,939,115 6.0 %
A&M HSC 185,590,682 60,595,713 48.5 %
UNT HSC 112,774,108 15,869,377 16.4 %
Texas Tech HSC 287,368,453 72,037,393 33.5 %
Total, All Health Related Institutions $ 2,293,232,712 $ 285,664,746 14.2 %

Formula
Formula funding and formula related items for the health related institutions increased by a total of $87.2 million, including:

  • $48.2 million for the Instruction and Operations formula, including $6.2 million in all funds for the Texas A&M University System Health Science Center Irma Rangel School of Pharmacy,
  • $  6.6 million for the Infrastructure formula,
  • $  1.9 million for the Research formula,
  • $30.2 million for the Graduate Medical Education formula 
    • This level of funding provides $5,634 per resident per year,
  • $  0.3 million for Infrastructure Formula Enhancement at UT Health Center Tyler, and
  • Combining UT M.D. Anderson Cancer Center’s Mission Specific funding, Patient Care Activities, and Science Park Operations funding into a new Operations Formula pilot program.

Non-Formula
The Texas A&M University System Health Science Center Irma Rangel School of Pharmacy is funded with $6.3 million  for the pharmacy students that were not included in the base period that was used for the formula calculations.  These funds will support the new students that enroll during the 2008-09 biennium. Additionally $5 million was provided to the A&M System to pay for costs to operate the pharmacy school in 2006-2007.  The appropriations also included $43 million to Texas Tech Health Sciences Center for the new medical school in El Paso.

Special Items:  New special items funded directly in each institution’s bill pattern include:

  • UT Southwestern:  $1 million for a Sickle Cell Disease Treatment Center
  • UT Health Science Center San Antonio:  $5 million for the Regional Academic Health Center,
  • Texas Tech Health Sciences Center:  $5.4 million for institutional enhancement.
  • UT M.D. Anderson Cancer Center:  $4 million for a Breast Cancer Research Program,
  • Texas A&M University System Health Science Center: $10 million for medical school enrollment growth in College Station and Temple.

An increase of $61.8 million in General Revenue Funds is included in the Special Provisions; $10 million of these items were vetoed by the Governor.   These items include:

  • UT Southwestern Medical Center: Obesity, Diabetes & Metabolism ($18 million)
  • UT Medical Branch - Galveston Stark Diabetes Center ($2 million) VETOED
  • UT Health Science Center – Houston:
    • World's Greatest Scientist ($5 million)
    • Public Health Expansion ($5 million) VETOED
  • UT Health Science Center - San Antonio: San Antonio Life Science Institute ($3 million) VETOED
  • Texas Tech Health Sciences Center:
    • Cancer Research ($4.8 million)
    • Physician Assistant Program ($1.0 million)
  • Texas A&M University Health Science Center
    • Medical School Expansion ($19 million)
    • Medical School Expansion - Temple ($4 million)

Other Funds
General Revenue–Dedicated funding for the Health Related Institutions decreases $35.3 million largely due to the exclusion of indirect cost recovery funds ($36.8 million).  Other Funds for the Health-Related Institutions increase by $1,032.7 million because of an increase in patient income mostly attributable to The University of Texas M.D. Anderson Cancer Center.

TRB Debt Service
Debt service for health related institutions’ tuition revenue bonds show a net increase of $64.2.  This includes funds for new tuition revenue bonds authorized by House Bill 153, Seventy-ninth Legislature, Third Called Session, 2006.

HIGHER EDUCATION COORDINATING BOARD
General Revenue Funds increase by $282.8 million over fiscal year 2006–07 levels.  This increase is primarily due to a $140.5 million increase in the Student Financial Aid Strategy, including:

  • $93 million for TEXAS grants,
  • $37 million for B-on-Time,
  • $5 million for Texas Educational Opportunity Grants, and
  • $5 million for Texas College Work Study.

The Tuition Equalization Grant Program ($211.7 million) is consolidated into the Student Aid strategy. The All Funds total for the Student Financial Aid strategy is $747 million. 

The other significant increase is due to the $100 million in performance incentive funding for the general academics that is appropriated in Art. III Special Provisions, Section 55.  The provision appropriates these funds to the Coordinating Board to be allocated by the Coordinating Board pursuant to a plan to be developed in conjunction with the Governor’s Office. 

Other increases at the Coordinating Board include:

  • $11.8 million increase for the College Readiness Initiative,
  • $8.3 million for Advanced Research Program,
  • $4 million for Baylor College of Medicine,
  • $7.6 million for Baylor College of Medicine Graduate Medical Education,
  • $9 million for the Professional Nursing Shortage Reduction Program,
  • $2.3 million for the Joint Admission Medical Program, and
  • $1.9 million for Alzheimer’s Disease Centers.

The Coordinating Board was also appropriated $500,000 for a Quantitative Study in Section 54 of the Art. III Special Provisions, but this appropriation was vetoed by the Governor. 

HIGHER EDUCATION FUND
The 79th Legislature passed HB3001 (Education Code §62.021) which increased the allocation to the Higher Education Fund by $87.5 million each year.  The 80th Legislature implemented this legislation and increased General Revenue Funds for the Higher Education Fund by $175 million for the biennium to $525 million.  The following table compares the FY2007 annual allocation with the FY2008 and beyond annual allocation:

 Annual Allocation for FY2007 Annual Allocation for FY2008 and beyond* Change: 2008 from 2007
UT Pan American 8,588,232 12,882,348 4,294,116
UT Brownsville 2,791,194 4,186,790 1,395,596
A&M  - CC 5,519,329 8,278,993 2,759,664
A&M  - K 3,368,155 5,052,232 1,684,077
A&M International 2,086,807 3,130,211 1,043,404
West Texas A&M 3,184,593 4,776,890 1,592,297
A&M - Commerce 3,563,785 5,345,678 1,781,893
A&M - Texarkana 1,097,568 1,646,352 548,784
UH 23,517,427 35,276,140 11,758,713
UH-Clear Lake 4,000,892 6,001,337 2,000,445
UH-Downtown 6,418,767 9,628,151 3,209,384
UH-Victoria 1,521,922 2,282,883 760,961
Midwestern State 2,289,565 3,434,348 1,144,783
UNT 17,424,822 26,137,233 8,712,411
Stephen F. Austin 4,683,847 7,025,771 2,341,924
Texas Southern 7,437,642 11,156,463 3,718,821
Texas Tech 17,886,318 26,829,477 8,943,159
Texas Woman's 5,616,139 8,424,209 2,808,070
Angelo State 2,390,535 3,585,802 1,195,267
Lamar University 7,473,672 11,210,508 3,736,836
Sam Houston State 6,610,870 9,916,306 3,305,436
Southwest Texas 13,199,517 19,799,276 6,599,759
Sul Ross 1,362,515 2,043,772 681,257
Sul Ross RGC 253,220 379,831 126,611
LUIT      
Lamar - Orange 743,365 1,115,048 371,683
Lamar - Port Arthur 793,412 1,190,119 396,707
TSTC 3,850,000 5,775,000 1,925,000
UNT HSC 5,426,261 8,139,391 2,713,130
TTU HSC 11,899,627 17,849,441 5,949,814
Statewide Total, HEF 175,000,000 262,500,000 87,500,000

AVAILABLE UNIVERSITY FUND
Distribution to the Available University Fund increased by $172.3 million in Other Funds due to a number of low-performing years dropping out of the rolling three-year investment period used to distribute funds from the Permanent University Fund.