(This legislative update has been assembled by the UH System Office of Governmental Relations and edited by the UH Division of University Advancement as a service to the UH System community.)
The UH System’s state legislative agenda for the next biennium has four components: Base Funding, Capital Construction, Research Development Fund (Tier One initiative), and Tuition.
Base Funding Issues
:
--Increase Formula Funding
: The Texas Legislature allocates funds to all public universities through a process called “Formula Funding,” based on factors such as enrollment by level and discipline, and predicted square foot needs. Formula Funding provides for the core functions of our public universities. The 78th Legislature reduced formula funding in 2003. As enrollment continues to grow, it is imperative to restore funding levels for basic educational services.
--Formula changes
: A Texas Higher Education Coordinating Board formula advisory committee has recommended a revised formula that will result in reductions for UH System institutions, ranging from $1.7 million to $8 million per year.
--Special Items
: Continued support for Special Items funding, also called non-formula items, is of vital importance. They include the Texas Learning and Computation Center, the Small Business Development Center, and other activities that do not fall into Formula Funding categories.
Desired outcomes
:
--Restore formula funding to the levels necessary to ensure basic educational services.
--Approve funding for all special items.
Capital Construction
:
--Tuition Revenue Bonds
: Since the early 1990s, the Legislature has designated every other regular session as a Tuition Revenue Bond (TRB) session. If the trend continues, the upcoming one will be a TRB session. However, for the first time the Legislature did not fully fund existing debt service in the 2003 appropriations bill. Therefore, universities are required to absorb unfunded debt payments out of existing revenue streams. Before new debt is authorized, full funding of existing debt must be achieved.
--Higher Education Fund (HEF)
: In 2005, the Legislature is constitutionally required to update and rewrite the formula for the Higher Education Fund. This is a very important process since it will be the basis for HEF distributions for the next 10 years. If additional state resources are available after base funding and existing debt service are addressed, the Legislature is encouraged to increase the amount of funding allocated to HEF rather than authorizing new bonds.
Desired outcomes:
--Before new debt is authorized, full funding of existing debt must be achieved.
--Increase HEF funding.
Research Development Fund (Tier One)
:
After years of contentious debate, the Legislature fully embraced the need for making Texas more competitive in the field of research. With Gov. Perry’s approval, a bill was passed in 2003 creating a single research fund distributed on an equitable basis. The Governor, however, vetoed the funds. Reinstatement and expansion of these funds is vital for the continued growth of the state’s economy and for advancement in significant sectors such as bionano technology, materials science, life science, and other areas requiring a highly skilled workforce.
Desired outcome:
--Reinstatement and expansion of the Research Development Fund.
Tuition
:
--Retain Authority to Set Tuition
: With continued growth and unpredictable revenue streams, it is important that universities have the flexibility to assess appropriate charges in order maintain course offerings and quality.
--Financial Aid
: The Texas Higher Education Coordinating Board’s plan “Closing the Gaps” calls for increasing college going rate by 500,000 students by 2015. To achieve this goal, the increase must come from traditionally underserved populations, especially from low-income groups. More than 75,000 students qualified for TEXAS grants this year. However, the state appropriated funds to cover only 67,500. The inability to serve almost 10,000 qualified students is alarming. If this trend continues, lower income students will be even less likely to attempt a college education.
Desired outcomes:
--Maintain flexibility to set tuition at levels needed by each university.
--Increase financial aid to ensure that Texas universities are able to achieve the “Closing the Gaps” program.
Sponsored by the Houston Alumni Organization and CATs (Cougar Advocates for Texas), this year’s visit to legislators has been themed “Meet the Future of Texas,” with emphasis being placed on increased student participation.
“We have always had a strong student support,” said Grover Campbell, Vice Chancellor for Governmental Relations, “but this year we would like to see even more students making the rounds and meeting our state representatives and senators.”
Approximately 400 UH System folks are expected to sign up for the day-long activities. The event is free, but be reminded that faculty and staff cannot participate “on company time.” As state employees, they must take a day off.
You may register by going to the “Calendar/Event Registration” section on the Houston Alumni Organization’s web page or by calling Amy Bailey at 713-743-0828.
This year the orientation segment will take place in Houston, not in Austin as in previous years. Below is the schedule of events:
8 a.m. – Registration, orientation, and kickoff, O’Quinn Great Hall at the Athletics/Alumni Center on the UH campus.
9 a.m. – Buses depart for Austin, lunch served.
Noon – Arrival at State Capitol building, visit House and Senate chambers.
1:30 p.m. – Participants fan out throughout building and visit legislators’ offices.
4:30 p.m. – Visits conclude, board buses for reception, location to be determined.
5:30 p.m. – Reception honoring legislators.
7:30 p.m.– Buses depart Austin and return to Houston.
10:30 p.m. – Buses arrive at Athletics/Alumni Center on UH campus.
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