TASSCUBO October 13, 2009 The 81 st - and 82 nd - Texas Legislatures

TASSCUBO

October 13, 2009

The 81st - and 82nd - Texas Legislatures

The Texas Legislative Process In Motion

Major State Issues as the 81st Regular Session Began

• Property Tax Relief and Reform• Public Education• Business Margins Tax Changes• Transportation• Insurance• Criminal Justice• Condition of State Retirement Systems• Immigration and Border Issues

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The 81st Regular Session Overall

• 7,609 Bills Introduced• 1,459 Bills Passed

36 bills vetoed• Major Accomplishments:

Public education reforms Initiative for more national research universities State School reforms Windstorm insurance reforms Margins tax exemption for small business Eminent domain constitutional amendment Physician student loan repayment program

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Appropriations Highlights for 2010-2011

• Higher Education Funding Overall Up 11% $383.3 million in increased formula funding Financial aid up $210.9 million $171.9 million more for Higher Education Group

Health Insurance• Financial Aid Increased

$185.9 million more for TEXAS Grants– But no new merit requirement

$10 million more for Texas Educational Opportunity Grants for community college students

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What Happened Legislatively in the 81st Session

• Tuition Flexibility Remains Intact No bill passed

– SB 1443 by Zaffirini passed Senate but not House

HCR 288 – Adopted by the House of Representatives on final day– Only expresses intent of the House of Representatives

• Senate did not consider resolution– Endorses cap of 3.95% or $280 per year increase for

2010-11 through 2013-14

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• Top 10% Law Reformed Beginning in 2011, UT Austin can cap automatic admits at

75% of entering Texas class– Results in Top 8% of students in 2011

Extends or reserves automatic admission to any institution for Top 10% students who opt to attend community college first

Establishes Top 10% scholarship program for new students, but unfunded

Sunsets in 2015 Compilation of collection and reporting of race and ethnicity

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• More National Research Universities Stimulated (HB 51 by Branch and HJR 14 by Corte) Texas Research Incentive Program to provide $50 million in state

matching funds for research focused philanthropy National Research University Fund to sustain emerging research

universities that meet established criteria (subject to voter approval in November)

$80 million in performance incentive funding for academic institutions for graduates, especially for at-risk students and those in critical fields

Coordinating Board to develop program for funding excellence programs at other 26 institutions

Research University Development Fund to formalize Texas Competitive Knowledge Fund

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• Tools to Grow Texas Healthcare Workforce Expanded $16.3 million in additional funding for Graduate

Medical Education Nursing Shortage Reduction Program updated

(HB 4471 by Kolkhorst)– $30 million for increases in nursing faculty

Joint Admission Medical Program expanded (SB 1728 by West)– Full funding of $10.6 million for program, a 100%

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• Bonds for Cancer Prevention and Research Institute of Texas Authorized $450 million in bonds funded

• Emerging Technology Fund (ETF) Continued $94 million more for ETF and carryover of more than $100

million in current funding• Incentives for Academic Institutions Maintained

$80 million appropriated for general academic institutions’ incentives, with criteria in HB 51

• New Schools: Texas A&M Central Texas and San Antonio, UNT Dallas, UNT Law School, and UT Health Science Center-South Texas

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Other Issues

• Restrictions on Biomedical Research No restriction imposed, but interim study authorized

• Concealed Handguns on Campuses No change in current law

• Changes at Student Health Centers HB 103 adopted, but vetoed

• Health Benefits for Domestic Partners No change in current law

• Heath Insurance for Graduate Students and Fellows SB 42 died in last hour in Senate

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Key Business Affairs Legislation

• Eminent Domain Constitutional amendment prohibiting use of eminent domain for economic

development or enhancement of tax revenues (HJR 14 by Corte) Omnibus eminent domain bill proposing additional limitations did not pass

(SB 18 by Estes)• Compliance

Allows anonymous complaints to compliance offices and anonymous participation in compliance investigations (HB 4189 by Rose)

• Campus Construction Increased caps for required Coordinating Board approval of construction,

repair, and rehabilitation projects at universities (SB 1796 by Zaffirini)• Emergency Operations

Requires emergency operations plans for universities (SB 2323 by Carona)

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Key Business Affairs Legislation

• Public Disclosure Protects from public disclosure information

concerning the specific location of biological toxins and personal identifying information of faculty and employees working with those toxins (SB 1182 by Wentworth)

• Real Estate “Land” under the control of an institution of higher

education will be entitled to the same considerations for landmark designation as previously applied only to “buildings” (HB 3632 by Geren)

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Key Academic Affairs Legislation

• Creation of Online University Resumes (SB 174 by Shapiro) Directs Coordinating Board to create and maintain a website

detailing costs, financial aid, degrees awarded, class sizes, course evaluations, and admissions for all Texas public universities

• Reforms in Formula Funding for Credit Hours not Toward a Degree (HB 101 by Fred Brown) Prohibits any credit hours earned prior to graduating high school

being counted for purposes of the cap on hours to be funded• Financial Aid

Distribution of information regarding cost of attending universities and availability of financial aid (SB 1764 by Watson)

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• Tuition Exemptions Exemption for volunteer firefighters enrolled in fire science courses

(HB 2013 by Keffer) Exemption for peace officers enrolled in criminal justice or law

enforcement course work (HB 2347 by Thibaut) Exemption for students who have been under the conservatorship of

the Department of Family and Protective Services (SB 43 by Zaffirini) Exemption for students enrolled in inter-institutional academic

programs (SB 45 by Zaffirini) Exemption for military personnel and their dependents or spouse (SB

93 and SB 297 by Van de Putte)– SB 297 also provides non-Texas resident veterans with in-state tuition so long

as they reside in Texas while enrolled

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• Uniform Standards for Publishing on the Internet Cost of Attendance Information, Course Evaluations, and Other Information (HB 2504 by Kolkhorst)

• Coordinating Board Study of Cost Savings Measures and the Use of Electronic Textbooks at Universities (HB 4149 by Rose) Cost savings report due by January 31, 2011 Electronic textbook report due by December 1, 2010

• Notice to Students of Amount of Tuition Set Aside for Financial Aid (SB 1304 by Dan Patrick)

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• Mandated Meningitis Vaccinations of Students at Universities (HB 4189 by Rose)

• Notice Regarding the Availability of Higher Education Textbooks Through Multiple Retailers (HB 1096 by Vo)

• Environmental Service Fee at Public Institutions of Higher Education (HB 3353 by Naishtat)

• Requires an Online List of Work-Study Employment Opportunities Available to Students (SB 305 by Shapleigh)

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Key Health Affairs Legislation

• Expansion of Loan Repayment Program for Physicians Practicing in Underserved Areas (HB 2154 by Edwards)

• Requirement for Health Related Institutions to Provide in the Appropriations Request the Actual Amount of Uncompensated Care Provided (SB 1 Rider)

• Pilot Program at Employees Retirement System to Study Alternative Payment Methods for Healthcare (HB 4586 by Pitts)

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• Public Access to Course Information under HB 2504 Requires each public university, excluding medical and dental

units, to post an open, searchable website to include a course syllabus, professor’s vitae, appropriate departmental operating budget, and work-study opportunities

• Off-campus and Self-Supporting Courses and Programs Establishes reporting, classroom, and support requirements for

off-campus and self-supporting courses and programs• Strategic Planning for Emerging Research and/or

Research Institutions under HB 51 Requires the governing board of each research or emerging

research university to submit a strategic plan by April 1, 2010

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Texas Higher Education Coordinating Board Rulemaking

• University Funding for Excellence Under HB 51 Establishes guidelines for non-research and non-emerging research

universities regarding the application for excellence funding• Performance Incentive Fund Under HB 51

Establishes the criteria for distribution of funds, with 50% for eligible institutions for the increase in average number of degrees awarded annually and 50% to eligible institutions for the average number of degrees awarded annually. Both are tied to special weights according to critical/non-critical fields and at-risk/not-at-risk students

• Texas Research Incentive Program (TRIP) Under HB 51 Establishes rules for state matching funds for research-oriented

philanthropy and their distribution. Funds are distributed in order of their certification date, and all gifts with same date will be considered in a block for purposes of state match

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• Internet Access to Cost Information Under SB 1764 Requires institutions to display cost of attendance information on an

institution’s website in accordance with rules for written or electronic materials

• Notice to Students of Tuition Financial Aid Set Aside Under SB 1304 Requires notice to student of exact amount set aside either on tuition

bill statement or tuition receipt or prominently displayed via e-mail statement

• Energy Savings Performance Contracts Adds rules requiring a review by the State Energy Conservation Office

and a statement from institution’s CFO and general counsel certifying the contract has been reviewed and costs do not exceed guaranteed savings

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Issues InvolvingAmerican Recovery and Reinvestment Act Funds

• Multiple Layers of Reporting Federal State Comptroller Governor and Legislative Budget Board Issues last weekend with initial reporting

• THECB Administration of ARRA Funds Delay in expenditure and receipt of funds Availability of funds for one year or biennium Permissible uses of funds Resolution of past issues with THECB

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Higher Education Cost Efficiency Executive Order

• Governor Perry’s Executive Order RP73 Regarding Higher Education Cost Efficiency

Directs Coordinating Board to review and offer recommendations for cost efficiencies in higher education including:

– State funding based on student course completion– Restructuring the state’s financial aid programs to improve administrative efficiencies and to provide financial

aid to students who work hard to academically prepare for college– Academic program consolidation and elimination of programs that produce relatively few graduates– Faculty workload– Articulation agreements between two-year and four-year institutions – Distance learning– Alternatives to creating new campuses– Course redesign to improve quality and reduce instructional costs for more courses– Cooperative, cross-system contracting and purchasing – Space utilization– Energy use– Cost of instructional materials

Directs additional review of cost efficiencies in other states and nations Report to be submitted to Governor, Legislature, and institutions by November 1, 2010

– Assumed to supplant HB 4149 report

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What Lies Ahead in the Next 15 Months

• November 3rd election to establish new National Research University Fund (Proposition 4)

• Continued scrutiny of tuition increases• Formula Advisory Committee work • Cost study for formulas for health-related

institutions• Interim studies of House and Senate Committees• 2010 elections and consequences

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What Awaits in January 2011

• State economic and budget condition Stimulus funds not available

– $338 million for higher education

Structural deficit continues to grow Sales tax receipts continue to decline Balance of Rainy Day Fund may grow

– What balance must remain unspent?

Growth in usual historical state expenditures A repeat of 2003 -- or worse?

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What Awaits in January 2011

• Higher Education Funding Needs Maintain formula funding TRBs or some support for capital construction Continuation of National Research University Initiative Issues with condition of Texas Guaranteed Tuition Plan Continue momentum nationally

• Higher Education Issues Reemergence of debates over:

– Tuition re-regulation– Concealed handguns– Biomedical research– Student health care

New emphasis on efficiencies and cost controls All against backdrop of redistricting

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Documents

TASSCUBO October 13, 2009 The 81 st - and 82 nd - Texas Legislatures