Funding for the 2010-11 biennium for the general academic institutions increases by $252 million in General Revenue and American Recovery and Reinvestment Act funds over the 2008-09 biennium, which is a 5.8 percent increase.
Funding changes can broadly be summarized as follows:
- $181m increase in formula funding
- $40 million for hold harmless
- $40 million net decrease due to the elimination of one-time items
- $2.5 million for Institutional Enhancement for certain institutions
- $20.3 New Special Items, including the System Centers in San Antonio and Killeen; the increase for UNT-Dallas is included in UNT System funding
- $1.8 million for increases to existing Small Business Development Centers
- $33 million for the Competitive Knowledge Fund
- $42.5 million for ARRA Special Items
- $28.9 million net decrease in TRB debt service
Additional information on these funding decisions is detailed below.
Funding increases to the general academic formulas totals over $181 million. Approximately $148 million of the total increase is to cover enrollment growth of 3.55 percent between the last base period and the current base period, including the spring 2009 semester. There is also an additional increase of about $34 million to improve all the general academic formulas.
Funds are appropriated to the General Academic Institutions in Article XII of the General Appropriations Act which allocates the federal American Recovery and Reinvestment Act funding. Of the formula funding that is provided to the academic institutions, $81 million is funded from the ARRA Funds and a like amount of General Revenue that is appropriated in Article III is reduced in Article XII, Section 30 Reduction in Appropriations.
An additional $66,533,200 is added to the Instruction formula for formula enrichment based on a shift in funding from the Excellence and Institutional Enhancement strategies. An amount equal to each institution's gain in the formula based on the added $66.5 million was deducted from its Excellence and Institutional Enhancement strategies. The cost to the bill and the cost to each institution is neutral this biennium based on this policy change.
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 100 percent for the final phase in of the cost-based matrix. The 2008-09 biennium phased the cost-based matrix in at 75 percent.
The split of funding between the Instruction formula and the Infrastructure formula, before enrollment growth and formula enrichment is added, is 83% to Instruction and 17% to Infrastructure. The formula rate for the instruction formula is $62.19 per weighted semester credit hour, up from $59.02 last biennium. The formula rate for the infrastructure formula is $6.21 per square foot, up two cents. The split between Utilities and Operations and Maintenance is 57.4% / 42.6%.
$40.0 million is provided for formula hold harmless for 12 institutions. (The $40 million in hold harmless is not included in the $181 million of formula increases cited above.) The hold harmless was calculated without the $66.5 that was moved from Excellence and Institutional Enhancement into the formula. The hold harmless policy provides that that no institution receives less than a four percent increase in formula funding general revenue as compared to the 2008-09 biennium. However, the Texas Woman's University hold harmless funding is capped at $10 million. In the Texas A&M University System, Prairie View A&M University received $8,002,564 and West Texas A&M University received, $832,042 in hold harmless funding. Each institution that receives hold harmless funding has a rider that states that the funding is for the 2010-11 biennium only and it is the legislative intent that the funding not be continued into the 2012-13 biennium.
The funding includes a change to the Small Institution Supplement. The total cost of the Small Institution Supplement is $38.2 million, an increase of $26.2 million from the 2008-09 biennium. In the past, the Small Institution Supplement of $1.5 million each biennium was provided to all institutions with headcount enrollments of fewer than 5,000; this supplement was included in the line item for Infrastructure Support and not separately identified in the bill pattern. Beginning with the 2010-11 biennium, the Small Institution Supplement is phased out beginning at 5,000 headcount up to 10,000 headcount. For the Texas A&M University System, Texas A&M International University would have fully lost the $1.5 million in Small Institution Supplement under the old methodology but received $1.2 million in the 2010-11 biennium as a result of the change to the new methodology. Other institutions in A&M System that benefitted as a result of the methodology change are Prairie View A&M University ($516,300), Tarleton State University ($110,100), Texas A&M University - Corpus Christi ($256,200), Texas A&M University - Kingsville ($853,800), West Texas A&M University ($735,000), Texas A&M University - Commerce ($314,100). Texas A&M University @ Galveston and Texas A&M University - Texarkana continue to receive the full $1.5 million. The system centers / new institutions (Texas A&M University - San Antonio, Texas A&M University - Central Texas and University of North Texas - Dallas) all receive the Small Institution Supplement in FY2011 only ($750,000/institution).
A&M System General Academic Institutions
Formula General Revenue Funds
2010-11 Compared to 2008-09
| ||2008-09 Formula GR Base ||2010-11 Formula GR less Adjustment* ||Hold Harmless ||Total Formula (w/ Adjustment) ||Variance ||% Variance
| Total A&M
Notes: *2010-11 nets out the shift in funding from Institutional Enhancement and Excellence to the formulas. The variance above reflects the true increase in formula operating funds.
System Centers / New Institutions of Higher Education:
Several appropriations actions affected the three system centers. As mentioned above, each system center received the Small Institution Supplement in FY2011 for an increase of $750,000 per institution and debt service for their currently authorized tuition revenue bonds (additional discussion below). The Legislature provides a total addition transition funding of $18.7 million for the three system center operations ($6.3m for Texas A&M San Antonio and $6.1 million for Texas A&M Central Texas). A new rider is added in the bill pattern of the host institution that directs all appropriations associated with each system center to go directly to the system center. Currently the appropriations are embedded within the bill pattern of the host institutions (A&M Kingsville for A&M San Antonio; and Tarleton State for A&M Central Texas). This rider sets in motion the separation of all appropriations information between the host institutions and the new institutions in order to establish a separate bill pattern for the new institutions in the next appropriations cycle.
Non-formula items include tuition revenue bond debt service, all special items, Institutional Enhancement, Texas Competitive Knowledge Fund, Research Development Fund, Workers' Compensation Insurance/ Unemployment Compensation Insurance, and Academic Development Initiative.
Tuition Revenue Bond Debt Service: Funding requirements for tuition revenue bonds for the general academic institutions decreased by $29 million. This includes a significant $12.3 million decrease in required debt service for Texas A&M International alone.
Based on legislation (SB629 by West/Aycock ) that passed and was signed by the Governor during the 81st Legislature, the statutory enrollment thresholds for the system centers to issue previously authorized TRBs are removed and these new institutions are eligible now to issue their authorized tuition revenue bonds. For the Texas A&M System, $5.6 million in debt service is available for tuition revenue bond debt service for Texas A&M University - San Antonio and Texas A&M University - Central Texas together.
Excellence/Institutional Enhancement: In addition to the shift of funding from the Excellence and Institutional Enhancement strategies, the Legislature made several other changes to these strategies.
- The Excellence line item strategy is eliminated and any funding remaining in that line item (after the shift of part of those and the Institutional Enhancement funds to the formula) is rolled into the Institutional Enhancement line item.
- $2.5 million in additional Institutional Enhancement funding is added for institutions that the Legislature determined had less than other institutions in similar type of funding. This resulted in an increase of $500,000 each at Texas A&M University at Galveston, University of Houston - Clear Lake, University of Houston - Victoria, Midwestern State University and Sul Ross State University - Rio Grande College.
- Finally, at Tarleton State University, $50,000 in each year is moved from Institutional Enhancement to a new line item strategy, Tarleton Outreach to support the institution's existing operations in Southwest Tarrant County.
Texas Competitive Knowledge Fund: The Texas Competitive Knowledge Fund is increased by $33.0 million and allocated among the four currently eligible institutions. UT Austin's funding increases by $15.7 million, Texas A&M University's by $15.6 million, University of Houston's by $870,000, and Texas Tech University's by $840,000. These funds were allocated using the average of their most recent three years of total research expenditures as reported to the Higher Education Coordinating Board Accountability System. In addition, contingency riders are added to UT Arlington, UT Dallas and UT El Paso, stating that contingent upon attaining a three-year average of $50,000,000/annum in total research expenditures, $5,000,000 in General Revenue appropriations to the institution are considered funding for the Texas Competitive Knowledge Fund.
Research Development Fund: The Research Development Fund is funded at the same level as in 2008-09, but the funding is reallocated based on the most recent three years of restricted research expenditures. A&M System academics increased their total funding from the RDF by $131,000 for the biennium based on the redistribution.
Special Items: New special items are funded in two places in the appropriations bill -- $9.8 million in new special items are funded directly in each general academic's bill pattern and $42.5 million in special items for general academics are funded in Article XII with the American Recovery and Reinvestment Act (ARRA) funding. There is decrease of $40.3 million in one-time funding from the amount in 2008-09, such as hurricane emergency appropriations and deferred maintenance. This includes a decrease at Texas A&M University of $3 million for a Summer School Pilot Program and a decrease of $5.6 million at Prairie View A&M University for unexpended balances in the Academic Development Initiative.
Increases in special items in Article III include:
- $1.9 million for small business development centers, including $30,000 for Texas A&M International; $34,050 for West Texas A&M; and $20,000 for Tarleton State University. The Comptroller's Office certified this additional funding as cost neutral;
- $4 million for Texas A&M Corpus Christi for an Engineering Program;
- $1 million for Texas A&M Corpus Christi for a Small Business Incubator. The Comptroller's Office certified this additional funding as cost neutral;
- $555,710 for the Texas State Data Center at the UT - San Antonio, and
- $2.4 million for the Rural Development Initiative South West Border Network Small Business Development Center at UT - San Antonio.
In addition several institutions receive one-time special item funding from the ARRA funds in Article XII, including:
- University of Texas-Austin: Law School Clinical Program - $420,000
- University of Texas-Dallas Middle School Brain Years $6,000,000
- University of Texas-Dallas: Academic Bridge - $462,500
- University of Texas-Dallas: Center for Values in Medicine, Science and Technology - $5,000,000
- University of Texas-San Antonio: Life Science Institute - $4,000,000
- University of Texas-San Antonio: P-16 Council - $500,000
- Texas A&M University-Commerce: BS Construction Engineering - $1,000,000
- Texas A&M Texarkana: Downward Expansion - $6,000,000
- University of Houston: Energy Research - $3,000,000
- University of Houston-Downtown: Community Development - $250,000
- Midwestern University: Autism Support Program - $220,000
- University of North Texas: Institutional Enhancement - $2,000,000
- University of North Texas: State Historical Association - $150,000
- Texas Tech University: Emerging Technologies Research - $4,000,000
- Angelo State University: Nursing & Allied Health - $2,000,000
- Lamar University: Institutional Enhancement - $2,500,000
- Sam Houston University: Institutional Enhancement - $4,000,000
- Texas State University-San Marcos: River Systems Monitoring - $1,000,000
A&M System General Academic Institutions Operating Funding from General Revenue and ARRA Funds (no TRB Debt Service) Senate Bill 1 Appropriations for 2010-11 Compared to 2008-09 Expended/Budgeted Level
| || 2008-09 || 2010-11 || Difference || % Change
|Texas A&M University
|Texas A&M @ Galveston
|Prairie View A&M University
|Texas A&M - Corpus Christi
|Texas A&M - Kingsville
|Texas A&M International
|West Texas A&M
|Texas A&M - Commerce
|Texas A&M - Texarkana
| Total, A&M System Academics
| Total, All General Academics
Does not include TRB debt service.
Does not include FY09 estimated unexpended balances for Prairie View A&M's Academic Development Initiative and certain other one-time reductions from the 2008-09 funding level.
Funding for Tarleton State includes funding for Texas A&M-Central Texas. Funding for A&M Kingsville includes Texas A&M-San Antonio.