Jim Pitts Sylvester Turner Chairman Vice-Chair
TEXAS HOUSE OF REPRESENTATIVES COMMITTEE ON APPROPRIATIONS
AGENDA
SUBCOMMITTEE ON ARTICLE III
CHAIRMAN OTTO
FRIDAY, FEBRUARY 15, 2013 7:30 A.M. JHR, ROOM 140
I. CALL TO ORDER
II. CHAIRMAN’S OPENING REMARKS
III. GENERAL ACADEMIC INSTITUTIONS CONTINUED THE UNIVERSITY OF TEXAS AT AUSTIN - William C. Powers, Jr., President
IV. HEALTH RELATED INSTITUTIONS • HEALTH RELATED INSTITUTIONS SUMMARY - Demetrio Hernandez, Analyst, Legislative Budget Board
• THE UNIVERSITY OF TEXAS MEDICAL BRANCH AT GALVESTON - Dr. David L. Callender, President • THE UNIVERSITY OF TEXAS SOUTHWESTERN MEDICAL CENTER - Dr. Daniel K. Podolsky, President • THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT HOUSTON - Dr. Giuseppe Colasurdo, President and Dean, Medical School • THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT SAN ANTONIO - Dr. Kenneth L. Kalkwarf, Interim President • THE UNIVERSITY OF TEXAS M.D. ANDERSON CANCER CENTER - DR. RONALD A. DEPINHO, President • THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT TYLER - Dr. Kirk A. Calhoun, President • TEXAS A&M UNIVERSITY SYSTEM HEALTH SCIENCE CENTER - E.J. "Jere" Pederson, Interim President and Interim Vice Chancellor for Health Affairs, Texas A&M University System • TEXAS TECH HEALTH SCIENCES CENTER - Dr. Tedd L. Mitchell, President • BAYLOR COLLEGE OF MEDICINE - Dr. Paul E. Klotman, President
V. JUNIOR COLLEGES / COMMUNITY COLLEGES • Formula Funding Overview and Junior Colleges/Community Colleges Summary, Daniel Estrada - Senior Analyst, Legislative Budget Board • Shelia DeLeon - Analyst, Legislative Budget Board, GEER Report: Improve Online Distance Education at Community Colleges by Using Cooperative Contracts and Open Education Resources
TEXAS ASSOCIATION OF COMMUNITY COLLEGES • Dr. Bill Holda - TACC Chair and President of Kilgore College • Dr. Richard Carpenter - TACC Chair-Elect and Chancellor, Lone Star College System • Mrs. Marie Flickinger - Community College Association of Texas Trustees Chair and Chair of the Board, San Jacinto College • Dr. Lilly Tercero, President of Texas Southmost College
Small/Rural Colleges Panel: • Howard College - Dr. Cheryl Sparks, President • Panola College - Dr. Greg Powell, President • Vernon College - Dr. Dusty Johnston, President
Mid-Sized Colleges: • Amarillo College - Dr. Paul Matney, President • McLennan Community College - Dr. Johnette McKown, President • North Central Texas College - Dr. Eddie Hadlock
Large/Urban Colleges: • Tarrant County College - Dr. Erma Johnson Hadley, Chancellor • Dallas County Community College - Dr. Wright Lassiter, Chancellor • San Jacinto College - Dr. Brenda Hellyer, Chancellor
VI. PUBLIC TESTIMONY
VII. ADJOURN
THE UNIVERSITY OF TEXAS AT AUSTIN WILLIAM C. POWERS, JR., PRESIDENT HOUSE APPROPRIATIONS SUBCOMMITTEE ON EDUCATION, FEBRUARY 15, 2013
UT AUSTIN’S COMMITMENT
Texas is recovering from the most significant economic challenge of modern times, and The University of Texas at Austin continues its commitment to move the state beyond recovery to a position of growth and expansion. As the state’s most productive Tier 1 university, UT Austin will foster the highest quality teaching and research needed to play the critical role a growing Texas economy needs.
Already one of the most cost-effective research universities in the nation, UT Austin continues to improve its academic goals and administrative structures to achieve even higher levels of productivity. As the teaching function of the university is the most significant part of its budget, the most powerful lever to achieve operational efficiencies lies with improving pathways through the University. At the same time, we are transforming courses to improve the learning experience. The result will be a UT Austin that is both more efficient and higher quality.
The university also has launched a multiyear initiative to make its business operations more efficient. An academic core-focused budget process along with improved business practices is already yielding cost savings. Last year the university enlisted 13 business leaders to examine its administrative operations and recommend improvements. The findings of the Committee on Business Productivity will consolidate many administrative positions, leverage UT’s assets more strategically, and streamline the commercialization of the university’s intellectual property.
UT Austin is moving forward to address issues critical to Texas’ future. One initiative it is undertaking — in partnership with local and private partners — is the addition of a medical school. UT Austin’s medical school will provide a new model of competency-based interdisciplinary health education and revolutionize teaching, learning, research, and patient care across the institution, in Texas, and around the country. The medical school will spur transformation of the health care delivery system by increasing access to primary and specialty care, continuing to improve quality, and decreasing health-care costs.
It is critical to the future that the State protects the core mission of the Texas’ Tier 1 institutions. The belt-tightening of the last budget cycle halted efforts to lower student-faculty ratios, and it has become more challenging to attract and retain the most talented faculty and students. While other states recover from the recession, they continue to look to Texas for faculty and students. The strength of our own state’s economic recovery will depend largely upon our ability to keep Texas talent in Texas.
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UT AUSTIN FAST FACTS
Approximately 52,000 students with undergraduate degree Administrative costs are about half of the state average for programs in 170 fields of study and 100 majors in 17 colleges public universities at 4.82% (only Texas A&M is lower at and schools. 4.1%.)
External research funding brought $628 million in new Highest 4-year graduation rate among public universities in research grants to Texas in 2011-12. Texas at 52.2%. (Texas A&M is a close 2nd.)
Now, more than 50% of our incoming freshmen are non- Over 13,000 degrees conferred per year. white, and 23.6% are Hispanic, representing a significant increase in students from historically under-represented populations.
WHAT WILL HELP UT AUSTIN KEEP MOVING FORWARD?
UT Austin continues to look within to find additional ways to reduce costs while protecting the special core mission of the university. UT Austin’s administrative costs are already about half of the statewide average. To insulate the core mission of the university and to prevent the erosion of talent and initiatives aimed at increasing student success, available resources should be used where most effective. To help UT Austin protect its core functions, available resources should be directed in these areas:
Formula funding continues to provide the base funding for all of higher education for the core academic instructional budgets. General Revenue support for the formulas would be immensely important for all Texas’ institutions.
The Texas Competitive Knowledge Fund (TCKF). UT Austin continues to be a leader in bringing externally funded research dollars to Texas. Our investigators had great success by earning $628 million in new research grants in 2011-12. The TCKF originally was created to provide $1 per biennium for every $10 dollars in external research support earned annually. In this way, the fund rewards and stimulates research productivity. It is the most effective way to support UT Austin and Texas A&M. Texas Tech, the University of Houston, and UT Dallas also participate according to the proposed budget. The current biennium saw deep cuts in the TCKF, cuts
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that were similar to special items reductions at 25 percent. Research support through items such as the Texas Competitive Knowledge Fund, are vitally important to UT Austin.
UT Austin's TRB request for the Engineering Education and Research Center (EERC), approved by the UT System Board of Regents at its January 23, 2013 meeting, will provide critically needed education and research space to help UT’s Cockrell School of Engineering achieve its vision to become a global center for technological innovation, engineering education, and entrepreneurship. The EERC will provide urgently needed space to increase research and graduate education for the rapidly changing trends in engineering and technology, and it will provide a high-quality learning environment for undergraduate students. An economic impact study concluded that by 2018 the EERC will generate significant economic impact for Texas with $19 million in additional state tax revenue and more than 4,000 new jobs.
UT Austin has several special items that address important State goals or protect State collections and yield a high rate of return on the State’s investment. These statewide items need to be protected. The one, new exceptional item being proposed for the coming biennium is the Mathways Project. Mathways builds on research about the causes of student failure in traditional development mathematics courses and creates research-based approaches to improving student success. This is a model partnership between a research university (through the Charles A. Dana Center at UT Austin) and all 50 community colleges in the state. The project is also a model of collaborative support, with state funds, institutional funds, and private philanthropy all working together. These new strategies will assist community college transfer students to successfully complete their degrees in a more timely manner.
Conclusion
UT Austin is making great strides to improve both quality and efficiency, to teach students and advance knowledge in ways that will lead Texas’ economic and civic growth. The University looks forward to meeting this responsibility, and to the role it will play in the future with the support of the people of Texas, its families, and businesses.
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Section 1
Health Related Institutions Summary of Recommendations - House
Demetrio Hernandez, LBB Analyst RECOMMENDED FUNDING BY METHOD OF FINANCING 2012-13 2014-15 Biennial % Method of Financing Base Recommended Change GR Other Change Dedicated 4.1% General Revenue Funds $2,415,826,066 $2,373,370,291 ($42,455,775) (1.8%) Funds GR Dedicated Funds $220,110,750 $159,517,505 ($60,593,245) (27.5%) 6.0% Total GR-Related Funds $2,635,936,816 $2,532,887,796 ($103,049,020) (3.9%)
Federal Funds $0 $0 $0 0.0% OtheOtherr $6,192,737,432 $108,325,792 (($6,084,411,640)$6,084,411,640) ((98.3%)98.3%)
All Funds $8,828,674,248 $2,641,213,588 ($6,187,460,660) (70.1%) General Revenue Funds 89.9% FY 2013 FY 2015 Biennial % Budgeted Recommended Change Change FTEs 28,918.0 12,548.6 (16,369.4) (56.6%)
Health Related Institutions 2/7/2013 Section 2 Health Related Institutions Summary of Recommendations - House, By Method of Finance -- GENERAL REVENUE FUNDS
2012-13 2014-15 Difference % Change Base Recommended General Revenue Funds $2,415,826,066 $2,373,370,291 ($42,455,775) -1.76%
2014-15 Strategy/Goal Recommended Comments
Formula General Revenue $1,574,925,499 An overview of all adjustments is The recommended formula General Revenue total is an increase of provided in Section 3, Selected Fiscal $133.1 million from 2012-13 appropriated amounts. and Policy Issues. Formula fiscal and policy issues are detailed in Section 3.
Instructions and Operations $952,979,202 Detail provided in Section 3A. Recommendations include an increase of $101.3 million in General Revenue for the Instructions and Operations formula and maintains the rate at $8,874. Infrastructure Support $221,728,243 Detail provided on Section 3A. Recommendations maintain the 2012-13 General Revenue in the Infrastructure Support formula.
Recommendations include the $1.9 million Infrastructure formula supplement provided to MD Anderson and University of Texas Health Science Center at Tyler in 2012-13 in the overall Infrastructure Support amount.
Research $65,207,886 Detail provided on Section 3A. Recommendations include an increase of $2.3 million in General Revenue for the Research formula and maintain the 2012-13 rate.
Graduate Medical Education $49,125,314 Detail provided on Section 3A. Recommendations include an increase of $3.1 million in General Revenue for the Graduate Medical Education formula and maintain the 2012-13 rate.
Health Related Institutions 2/7/2013 Section 2 Health Related Institutions Summary of Recommendations - House, By Method of Finance -- GENERAL REVENUE FUNDS
2012-13 2014-15 Difference % Change Base Recommended General Revenue Funds $2,415,826,066 $2,373,370,291 ($42,455,775) -1.76%
2014-15 Strategy/Goal Recommended Comments Cancer Center Operations $236,831,014 Detail provided on Section 3A. Recommendations include an increase of $24.3 million in General Revenue for the Cancer Center Operations formula and maintain the 2012- 13 rate. Chest Disease Center Operations $49,053,840 Detail provided on Section 3A. Recommendations include an increase of $1.9 million in General Revenue for the Chest Disease Center Operations formula and maintain the 2012- 13 rate.
Non-Formula General Revenue $798,444,792 The recommended non-formula General Revenue total is an decrease of $175.3 million from the 2012-13 base amounts.
Non-formula fiscal and policy issues are detailed in Section 3.
Special Items $328,624,896 Recommendations include funding for special items at the base requested amounts. Total General Revenue for special items is maintained at the 2012-13 amount. Tuition Revenue Bond Debt Service $168,666,242 Recommendations include funding for tuition revenue bond debt service at base request amounts. Tuition revenue bond debt service has increased $9.9 million dollars from the 2012-13 base amount. Section 3 shows appropriated, base, and recommended amounts by institution.
Hospital Operations $289,609,990 Recommendations include funding for hospital operations at base request amounts.
Health Related Institutions 2/7/2013 Section 2 Health Related Institutions Summary of Recommendations - House, By Method of Finance -- GENERAL REVENUE FUNDS
2012-13 2014-15 Difference % Change Base Recommended General Revenue Funds $2,415,826,066 $2,373,370,291 ($42,455,775) -1.76%
2014-15 Strategy/Goal Recommended Comments Unemployment Insurance and Workers' Compensation $3,597,736 Recommendations include funding for these strategies at the base Insurance requested amounts. Total General Revenue for these strategies is maintained at the 2012-13 amount. Institutional Operations $0 Detail provided on Section 3. Recommendations do not include General Revenue funding for institutional operations. This is a decrease of $42.3 million in General Revenue from 2012-13 base amounts. Funding for Institutional Operations that was appropriated in House Bill 4 and expended in 2011 is not included in the 2012-13 base.
Natural Disaster Reimbursement $0 Recommendations do not include General Revenue funding for natural disaster reimbursements. The recommended amounts reflect a decrease of $142.9 million in General Revenue from 2012-13 amounts. Facilities Operations $7,945,928 Recommendations include funding for debt service at the Texas A&M Health Science Center Round Rock facility and a facility lease for the University of North Texas Health Science Center at base request amounts.
Health Related Institutions 2/7/2013 Section 2 Health Related Institutions Summary of Recommendations - House, By Method of Finance -- GR DEDICATED
2012-13 2014-15 Difference % Change Base Recommended General Revenue Dedicated Funds $220,110,750 $159,517,508 ($60,593,242) -27.53%
2014-15 Strategy/Goal Recommended Comments
Formula General Revenue Dedicated $112,328,565 The recommended formula General Revenue Dedicated total is a decrease of $17.7 million from the 2012-13 appropriated amounts. Appropriated statutory tuition amounts are estimated. Base statutory tuition amounts reflect actual collections by institutions.
The tuition estimate and formula fiscal and policy issues are detailed in Section 3.
Instructions and Operations $63,546,148 Detail provided in Section 3A.
Infrastructure Support $11,858,331 Detail provided on Section 3A.
Board Authorized Tuition $36,924,086 In addition to these formula allocated General Revenue - Dedicated funds, the formula strategy recommendations also includes $36.9 million in Board Authorized Tuition increases, which are not used to offset General Revenue in the formula.
Health Related Institutions 2/7/2013 Section 2 Health Related Institutions Summary of Recommendations - House, By Method of Finance -- GR DEDICATED
2012-13 2014-15 Difference % Change Base Recommended General Revenue Dedicated Funds $220,110,750 $159,517,508 ($60,593,242) -27.53%
2014-15 Strategy/Goal Recommended Comments Non-Formula General Revenue Dedicated $47,188,943 The recommended non-formula General Revenue Dedicated total is a decrease of $42.9 million from the 2012-13 appropriated amounts. Appropriated statutory tuition amounts are estimated. Base statutory tuition amounts reflect actual collections by institutions. Non-formula General Revenue Dedicated recommendations are found in the strategies listed below. Staff Group Insurance $23,822,659
Unemployment Insurance and Workers' Compensation $0 Recommendations do not include General Revenue Dedicated in these Insurance strategies. This is consistent with the general academic institutions.
Texas Public Education Grants $21,155,417 Funding for TPEG comes from the portion of statutory tuition set aside to fund scholarships, as the total tuition estimate changes, so does the portion set aside for TPEG. Medical Loans $2,103,991 Funding reflects the portion of statutory tuition set aside for repayment of student loans of physicians serving in designated state agencies or economically distressed or rural medically underserved areas. GR-D Advisory Commission on Emergency Communications $106,876 Recommendations include requested amounts related to the University of Account No. 5007 Texas Medical Branch's East Texas Area Health Education Centers.
Health Related Institutions 2/7/2013 Section 2 Health Related Institutions Summary of Recommendations - House, By Method of Finance -- OTHER FUNDS
2012-13 2014-15 Difference % Change Base Recommended Other Funds $6,192,737,432 $108,325,792 ($6,084,411,640) -98.25%
2014-15 Strategy/Goal Recommended Comments
Patient Income $0 Detail provided in Section 3. Recommendations do not include patient income in the appropriations to health related institutions. Recommendations include an informational rider listing estimated patient income by institution. This is a decrease of $6.1 billion, $5.8 billion of which is at the University of Texas M.D. Anderson Cancer Center.
Tobacco Funds $96,866,027 Recommendations include Tobacco Funds at requested amounts.
Interagency Contracts $11,459,765 Recommendations include Interagency Contracts at base requested amounts less the Department of State Health Services' (DSHS) projected savings due to the implementation of the insurance exchange. This will result in a $1.7 million decrease in the amount of the Interagency Contract DSHS has with the University of Texas Medical Branch for indigent healthcare. This decrease is consistent with the recommendations for DSHS.
Health Related Institutions 2/7/2013 Section 3
Health Related Institutions Selected Fiscal and Policy Issues
1. Major Method of Finance Adjustments. a. General Revenue decrease of $42.4 million: formula funding increase of $101.3 million for Instruction and Operations; formula funding increase of $2.3 million for Research Enhancement; formula funding increase of $3.1 million for Graduate Medical Education; formula funding increase of $24.3 million for Cancer Center Operations; formula funding increase of $1.9 million for Chest Disease Center Operations; decrease of $142.9 million associated with natural disaster reimbursements for UTMB; Tuition Revenue Bond (TRB) debt service increase of $9.9 million; and an Institutional Operations decrease of $42.3 million. b. General Revenue-Dedicated Decrease of $60.6 million: Formula Funding decreases of $13.0 million for Instruction and Operations and $4.7 million for Infrastructure, and other non-formula General Revenue-Dedicated funds decrease of $42.9 million. c. Other Funds decrease of $6.1 billion in requested amounts, $5.8 billion of which is at the University of Texas M.D. Anderson Cancer Center, to reflect elimination of Patient Income in the bill pattern. Institutions will continue to receive this revenue.
2. Health Related Institutions Funding Methodology.
Formula: Recommendations maintain the 2012-13 rate for the following: o HRI Instruction and Operations Formula: . Recommendations include a $101.3 million increase in General Revenue and a decrease of $13.0 million in General Revenue Dedicated. . Rate is $8,874 per Full Time Student Equivalent. . Recommendations include all eligible institutions in the small class supplement. . Maintaining the Instruction and Operations formula rate and including all eligible institutions results in an additional $9.5 million being allocated for the small class supplement. See Section 3d for detail. o Research Enhancement Formula: . Recommendations include a $2.3 million increase in General Revenue. . Base funding of $1,412,500 plus 1.1 percent of the institution’s fiscal year 2011 research expenditures as reported to the Texas Higher Education Coordinating Board. o Graduate Medical Education Formula: . Recommendations include a $3.1 million increase in General Revenue. . The rate per medical resident in an accredited program is $4,682 each fiscal year. o Cancer Center Operations Formula: . Recommendations include a $24.3 million increase in General Revenue. . The rate per Texas cancer patient is $1,849 each fiscal year.
Sec 3_Fiscal and Policy Issues 2/7/2013 Section 3
o Chest Disease Center Operations Formula: . Recommendations include a $1.9 million increase in General Revenue. . The rate per chest disease patient is $340 each fiscal year.
Recommendations maintain the 2012-13 amount of General Revenue funding for the following: o Infrastructure Formula: . Recommendations include a decrease in $4.7 million in General Revenue Dedicated. . The rate per square foot is $6.36 for all health related institutions, excluding the University of Texas M.D. Anderson Cancer Center and the University of Texas Health Science Center at Tyler. . The per square foot rate for these two institutions is $5.89.
Tuition Estimate. Recommendations include General Revenue Dedicated 770 based on 2012 actual amounts reported by the institutions. This aligns the tuition estimate with the full time student equivalents in the base period, which is consistent with the General Academic Institutions.
Non-Formula
Recommendations include funding the following at base requested amounts: o Special Items. o Hospital Operations. o Tuition Revenue Bond Debt Service. (See Section 3e Tuition Revenue Bond Debt Service for 2012-13 budgeted/expended and 2014-15 requested amounts for each institution.) o Unemployment and Workers’ Compensation. Recommendations include funding these strategies with General Revenue only. This is consistent with the General Academic Institutions.
Institutional Operations. General Revenue funding for Institutional Operations is not included due to this funding being a one- time appropriation. This is a decrease from the 2012-13 base in General Revenue of $42.3 million. This amount has been incorporated into the recommendations to, in part, fund growth in the Health Related Institutions’ Instruction and Operations formula.
Recommendations do not include appropriating patient income to the institutions, but instead include informational riders listing estimated patient income in each affected institution’s bill pattern (See Section 5 Rider Highlights). Currently, this funding is not limited by the Legislature, and is not appropriated to the institutions through formulas.
Sec 3_Fiscal and Policy Issues 2/7/2013 Section 3
3. Small Class Supplement
Programs with enrollments of less than 200 receive a supplement of either $20,000 or $30,000 per Full Time Student Equivalent depending upon the program. The supplement addresses the small classes offered at the main campus and at remote satellite sites. The supplement is calculated based on a sliding scale that decreases as the enrollment approaches the 200 limit and is in addition to the base Instruction and Operations formula amount. Recommendations include $43.1 million for small class supplements to all eligible programs.
4. Multi-Campus Adjustment
Certain Health Related Institution campus sites qualify for this adjustment to predicted square feet in the space projection model used in the Infrastructure formula. The following criteria are required for qualification for the adjustment:
The site must be specifically authorized by Legislative actions (such as a rider or change in the statute to establish the separate site of the campus). The site shall not be in the same county as the parent campus. There may be more than one site in the separate location if the separate site meets all of the criteria for eligibility. The facilities must be in the facilities inventory report certified by the institution at the time the space projection model is calculated. The parent campus must demonstrate responsibility for site support and operations.
Sec 3_Fiscal and Policy Issues 2/7/2013 House Introduced Bill All Funds Compared to 2012‐13 Base Health Related Institutions and Baylor College of Medicine All Formulas
Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Instruction and Operations General Revenue General Revenue General Revenue General Revenue GR‐D 770 GR‐D 770 GR‐D 770 GR‐D 770 All Funds All Funds All Funds All Funds 2012‐13 2014‐15 $ Difference % Difference 2012‐13 2014‐15 $ Difference % Difference 2012‐13 2014‐15 $ Difference % Difference UT Southwestern Medical Center at Dallas$ 96,004,025 $ 99,015,702 $ 3,011,677 3.1%$ 7,217,153 $ 4,169,194 $ (3,047,959) ‐42.2%$ 103,221,178 $ 103,184,896 $ (36,282) 0.0% UT Medical Branch at Galveston$ 106,685,054 $ 110,650,939 $ 3,965,885 3.7%$ 9,667,728 $ 10,154,061 $ 486,333 5.0%$ 116,352,782 $ 120,805,000 $ 4,452,218 3.8% UT Health Science Center at Houston$ 176,926,409 $ 185,681,594 $ 8,755,185 4.9%$ 13,836,249 $ 9,709,288 $ (4,126,961) ‐29.8%$ 190,762,658 $ 195,390,882 $ 4,628,224 2.4% UT Health Science Center at San Antonio$ 147,845,110 $ 151,176,453 $ 3,331,343 2.3%$ 9,737,984 $ 8,671,747 $ (1,066,237) ‐10.9%$ 157,583,094 $ 159,848,200 $ 2,265,106 1.4% UT M.D. Anderson Cancer Center$ 5,374,800 $ 6,613,953 $ 1,239,153 23.1%$ 209,540 $ 165,601 $ (43,939) ‐21.0%$ 5,584,340 $ 6,779,554 $ 1,195,214 21.4% UT Health Science Center at Tyler $ ‐ $ 127,356 $ 127,356 NA $ ‐ $ ‐ $ ‐ NA $ ‐ $ 127,356 $ 127,356 NA Texas A&M Health Science Center$ 107,993,761 $ 142,163,374 $ 34,169,613 31.6%$ 11,724,239 $ 9,078,390 $ (2,645,849) ‐22.6%$ 119,718,000 $ 151,241,764 $ 31,523,764 26.3% North Texas Health Science Center at Fort Worth$ 74,288,899 $ 90,915,817 $ 16,626,918 22.4%$ 9,948,005 $ 9,591,677 $ (356,328) ‐3.6%$ 84,236,904 $ 100,507,494 $ 16,270,590 19.3% Texas Tech University Health Sciences Center$ 136,490,126 $ 166,634,014 $ 30,143,888 22.1%$ 14,275,546 $ 12,006,190 $ (2,269,356) ‐15.9%$ 150,765,672 $ 178,640,204 $ 27,874,532 18.5%
HEALTH RELATED TOTAL$ 851,608,184 $ 952,979,202 $ 101,371,018 11.90%$ 76,616,444 $ 63,546,148 $ (13,070,296) ‐17.1%$ 928,224,628 $ 1,016,525,350 $ 88,300,722 9.5%
Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Infrastructure General Revenue General Revenue General Revenue General Revenue GR‐D 770 GR‐D 770 GR‐D 770 GR‐D 770 All Funds All Funds All Funds All Funds 2012‐13 2014‐15 $ Difference % Difference 2012‐13 2014‐15 $ Difference % Difference 2012‐13 2014‐15 $ Difference % Difference UT Southwestern Medical Center at Dallas$ 44,667,766 $ 45,299,340 $ 631,574 1.4%$ 3,357,922 $ 1,907,392 $ (1,450,530) ‐43.2%$ 48,025,688 $ 47,206,732 $ (818,956) ‐1.7% UT Medical Branch at Galveston$ 24,806,999 $ 23,848,419 $ (958,580) ‐3.9%$ 2,247,993 $ 2,188,489 $ (59,504) ‐2.6%$ 27,054,992 $ 26,036,908 $ (1,018,084) ‐3.8% UT Health Science Center at Houston$ 32,565,662 $ 33,692,346 $ 1,126,684 3.5%$ 2,546,746 $ 1,761,772 $ (784,974) ‐30.8%$ 35,112,408 $ 35,454,118 $ 341,710 1.0% UT Health Science Center at San Antonio$ 30,031,567 $ 28,279,871 $ (1,751,696) ‐5.8%$ 1,978,063 $ 1,622,183 $ (355,880) ‐18.0%$ 32,009,630 $ 29,902,054 $ (2,107,576) ‐6.6% UT M.D. Anderson Cancer Center$ 46,299,473 $ 46,197,504 $ (101,969) ‐0.2%$ 1,805,015 $ 1,156,698 $ (648,317) ‐35.9%$ 48,104,488 $ 47,354,202 $ (750,286) ‐1.6% UT Health Science Center at Tyler$ 2,211,506 $ 1,974,612 $ (236,894) ‐10.7% $ ‐ $ ‐ $ ‐ NA$ 2,211,506 $ 1,974,612 $ (236,894) ‐10.7% Texas A&M Health Science Center$ 14,465,256 $ 14,531,749 $ 66,493 0.5%$ 1,570,406 $ 927,981 $ (642,425) ‐40.9%$ 16,035,662 $ 15,459,730 $ (575,932) ‐3.6% North Texas Health Science Center at Fort Worth$ 8,059,929 $ 8,468,554 $ 408,625 5.1%$ 1,079,303 $ 893,438 $ (185,865) ‐17.2%$ 9,139,232 $ 9,361,992 $ 222,760 2.4% Texas Tech University Health Sciences Center$ 18,620,085 $ 19,435,848 $ 815,763 4.4%$ 1,947,481 $ 1,400,378 $ (547,103) ‐28.1%$ 20,567,566 $ 20,836,226 $ 268,660 1.3%
HEALTH RELATED TOTAL$ 221,728,243 $ 221,728,243 $ ‐ 0.00%$ 16,532,929 $ 11,858,331 $ (4,674,598) ‐28.3%$ 238,261,172 $ 233,586,574 $ (4,674,598) ‐2.0%
Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Research Enhancement General Revenue General Revenue General Revenue General Revenue GR‐D 770 GR‐D 770 GR‐D 770 GR‐D 770 All Funds All Funds All Funds All Funds 2012‐13 2014‐15 $ Difference % Difference 2012‐13 2014‐15 $ Difference % Difference 2012‐13 2014‐15 $ Difference % Difference UT Southwestern Medical Center at Dallas$ 11,498,760 $ 11,706,570 $ 207,810 1.8% $ ‐ $ ‐ $ ‐ 0.0%$ 11,498,760 $ 11,706,570 $ 207,810 1.8% UT Medical Branch at Galveston$ 6,265,958 $ 6,330,162 $ 64,204 1.0% $ ‐ $ ‐ $ ‐ 0.0%$ 6,265,958 $ 6,330,162 $ 64,204 1.0% UT Health Science Center at Houston$ 8,107,884 $ 8,555,486 $ 447,602 5.5% $ ‐ $ ‐ $ ‐ 0.0%$ 8,107,884 $ 8,555,486 $ 447,602 5.5% UT Health Science Center at San Antonio$ 6,889,182 $ 6,746,636 $ (142,546) ‐2.1% $ ‐ $ ‐ $ ‐ 0.0%$ 6,889,182 $ 6,746,636 $ (142,546) ‐2.1% UT M.D. Anderson Cancer Center$ 14,827,704 $ 16,514,310 $ 1,686,606 11.4% $ ‐ $ ‐ $ ‐ 0.0%$ 14,827,704 $ 16,514,310 $ 1,686,606 11.4% UT Health Science Center at Tyler$ 3,140,476 $ 3,117,654 $ (22,822) ‐0.7% $ ‐ $ ‐ $ ‐ 0.0%$ 3,140,476 $ 3,117,654 $ (22,822) ‐0.7% Texas A&M Health Science Center$ 4,540,178 $ 4,398,362 $ (141,816) ‐3.1% $ ‐ $ ‐ $ ‐ 0.0%$ 4,540,178 $ 4,398,362 $ (141,816) ‐3.1% North Texas Health Science Center at Fort Worth$ 3,699,472 $ 3,736,650 $ 37,178 1.0% $ ‐ $ ‐ $ ‐ 0.0%$ 3,699,472 $ 3,736,650 $ 37,178 1.0% Texas Tech University Health Sciences Center$ 3,941,564 $ 4,102,056 $ 160,492 4.1% $ ‐ $ ‐ $ ‐ 0.0%$ 3,941,564 $ 4,102,056 $ 160,492 4.1%
HEALTH RELATED TOTAL$ 62,911,178 $ 65,207,886 $ 2,296,708 3.65% $ ‐ $ ‐ $ ‐ 0.0%$ 62,911,178 $ 65,207,886 $ 2,296,708 3.7%
2/7/2013 Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Three Main Formulas Subtotal General Revenue General Revenue General Revenue General Revenue GR‐D 770 GR‐D 770 GR‐D 770 GR‐D 770 All Funds All Funds All Funds All Funds 2012‐13 2014‐15 $ Difference % Difference 2012‐13 2014‐15 $ Difference % Difference 2012‐13 2014‐15 $ Difference % Difference UT Southwestern Medical Center at Dallas$ 152,170,551 $ 156,021,612 $ 3,851,061 2.5%$ 10,575,075 $ 6,076,586 $ (4,498,489) 0.0%$ 162,745,626 $ 162,098,198 $ (647,428) ‐0.4% UT Medical Branch at Galveston$ 137,758,011 $ 140,829,520 $ 3,071,509 2.2%$ 11,915,721 $ 12,342,550 $ 426,829 0.0%$ 149,673,732 $ 153,172,070 $ 3,498,338 2.3% UT Health Science Center at Houston$ 217,599,955 $ 227,929,426 $ 10,329,471 4.7%$ 16,382,995 $ 11,471,060 $ (4,911,935) 0.0%$ 233,982,950 $ 239,400,486 $ 5,417,536 2.3% UT Health Science Center at San Antonio$ 184,765,859 $ 186,202,960 $ 1,437,101 0.8%$ 11,716,047 $ 10,293,930 $ (1,422,117) 0.0%$ 196,481,906 $ 196,496,890 $ 14,984 0.0% UT M.D. Anderson Cancer Center$ 66,501,977 $ 69,325,767 $ 2,823,790 4.2%$ 2,014,555 $ 1,322,299 $ (692,256) 0.0%$ 68,516,532 $ 70,648,066 $ 2,131,534 3.1% UT Health Science Center at Tyler$ 5,351,982 $ 5,219,622 $ (132,360) ‐2.5% $ ‐ $ ‐ $ ‐ 0.0%$ 5,351,982 $ 5,219,622 $ (132,360) ‐2.5% Texas A&M Health Science Center$ 126,999,195 $ 161,093,485 $ 34,094,290 26.8%$ 13,294,645 $ 10,006,371 $ (3,288,274) 0.0%$ 140,293,840 $ 171,099,856 $ 30,806,016 22.0% North Texas Health Science Center at Fort Worth$ 86,048,300 $ 103,121,021 $ 17,072,721 19.8%$ 11,027,308 $ 10,485,115 $ (542,193) 0.0%$ 97,075,608 $ 113,606,136 $ 16,530,528 17.0% Texas Tech University Health Sciences Center$ 159,051,775 $ 190,171,918 $ 31,120,143 19.6%$ 16,223,027 $ 13,406,568 $ (2,816,459) 0.0%$ 175,274,802 $ 203,578,486 $ 28,303,684 16.1%
HEALTH RELATED TOTAL$ 1,136,247,605 $ 1,239,915,331 $ 103,667,726 9.12%$ 93,149,373 $ 75,404,479 $ (17,744,894) 0.0%$ 1,229,396,978 $ 1,315,319,810 $ 85,922,832 7.0%
Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Graduate Medical Education General Revenue General Revenue General Revenue General Revenue GR‐D 770 GR‐D 770 GR‐D 770 GR‐D 770 All Funds All Funds All Funds All Funds 2012‐13 2014‐15 $ Difference % Difference 2012‐13 2014‐15 $ Difference % Difference 2012‐13 2014‐15 $ Difference % Difference UT Southwestern Medical Center at Dallas$ 13,653,204 $ 14,617,730 $ 964,526 7.1% $ ‐ $ ‐ $ ‐ 0.0%$ 13,653,204 $ 14,617,730 $ 964,526 7.1% UT Medical Branch at Galveston$ 4,569,796 $ 4,916,278 $ 346,482 7.6% $ ‐ $ ‐ $ ‐ 0.0%$ 4,569,796 $ 4,916,278 $ 346,482 7.6% UT Health Science Center at Houston$ 7,866,044 $ 8,090,788 $ 224,744 2.9% $ ‐ $ ‐ $ ‐ 0.0%$ 7,866,044 $ 8,090,788 $ 224,744 2.9% UT Health Science Center at San Antonio$ 6,611,222 $ 6,732,958 $ 121,736 1.8% $ ‐ $ ‐ $ ‐ 0.0%$ 6,611,222 $ 6,732,958 $ 121,736 1.8% UT M.D. Anderson Cancer Center$ 1,151,814 $ 1,217,364 $ 65,550 5.7% $ ‐ $ ‐ $ ‐ 0.0%$ 1,151,814 $ 1,217,364 $ 65,550 5.7% UT Health Science Center at Tyler$ 262,202 $ 421,396 $ 159,194 60.7% $ ‐ $ ‐ $ ‐ 0.0%$ 262,202 $ 421,396 $ 159,194 60.7% Texas A&M Health Science Center$ 5,084,834 $ 5,431,316 $ 346,482 6.8% $ ‐ $ ‐ $ ‐ 0.0%$ 5,084,834 $ 5,431,316 $ 346,482 6.8% North Texas Health Science Center at Fort Worth$ 1,666,852 $ 2,069,518 $ 402,666 24.2% $ ‐ $ ‐ $ ‐ 0.0%$ 1,666,852 $ 2,069,518 $ 402,666 24.2% Texas Tech University Health Sciences Center$ 5,122,292 $ 5,627,966 $ 505,674 9.9% $ ‐ $ ‐ $ ‐ 0.0%$ 5,122,292 $ 5,627,966 $ 505,674 9.9%
HEALTH RELATED TOTAL$ 45,988,260 $ 49,125,314 $ 3,137,054 6.82% $ ‐ $ ‐ $ ‐ 0.0%$ 45,988,260 $ 49,125,314 $ 3,137,054 6.8%
Baylor College of Medicine$ 10,928,182 $ 10,918,817 $ (9,365) ‐0.1% $ ‐ $ ‐ $ ‐ 0.0%$ 10,928,182 $ 10,918,817 $ (9,365) ‐0.1%
HEALTH RELATED + BCOM TOTAL$ 56,916,442 $ 60,044,131 $ 3,127,689 5.50% $ ‐ $ ‐ $ ‐ 0.0%$ 56,916,442 $ 60,044,131 $ 3,127,689 5.5%
Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Mission Specific General Revenue General Revenue General Revenue General Revenue GR‐D 770 GR‐D 770 GR‐D 770 GR‐D 770 All Funds All Funds All Funds All Funds 2012‐13 2014‐15 $ Difference % Difference 2012‐13 2014‐15 $ Difference % Difference 2012‐13 2014‐15 $ Difference % Difference CANCER CENTER OPERATIONS FORMULA UT M.D. Anderson Cancer Center$ 212,448,233 $ 236,831,014 $ 24,382,781 11.5% $ ‐ $ ‐ $ ‐ 0.0%$ 212,448,233 $ 236,831,014 $ 24,382,781 11.5% CHEST DISEASE CENTER OPERATIONS FORMULA UT Health Science Center at Tyler$ 47,176,340 $ 49,053,840 $ 1,877,500 4.0% $ ‐ $ ‐ $ ‐ 0.0%$ 47,176,340 $ 49,053,840 $ 1,877,500 4.0%
MISSION SPECIFIC FORMULAS TOTAL$ 259,624,573 $ 285,884,854 $ 26,260,281 10.11% $ ‐ $ ‐ $ ‐ 0.0%$ 259,624,573 $ 285,884,854 $ 26,260,281 10.1%
2/7/2013 Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula All Formulas Total General Revenue General Revenue General Revenue General Revenue GR‐D 770 GR‐D 770 GR‐D 770 GR‐D 770 All Funds All Funds All Funds All Funds 2012‐13 2014‐15 $ Difference % Difference 2012‐13 2014‐15 $ Difference % Difference 2012‐13 2014‐15 $ Difference % Difference UT Southwestern Medical Center at Dallas$ 165,823,755 $ 170,639,342 $ 4,815,587 2.9%$ 10,575,075 $ 6,076,586 $ (4,498,489) 0.0%$ 176,398,830 $ 176,715,928 $ 317,098 0.2% UT Medical Branch at Galveston$ 142,327,807 $ 145,745,798 $ 3,417,991 2.4%$ 11,915,721 $ 12,342,550 $ 426,829 0.0%$ 154,243,528 $ 158,088,348 $ 3,844,820 2.5% UT Health Science Center at Houston$ 225,465,999 $ 236,020,214 $ 10,554,215 4.7%$ 16,382,995 $ 11,471,060 $ (4,911,935) 0.0%$ 241,848,994 $ 247,491,274 $ 5,642,280 2.3% UT Health Science Center at San Antonio$ 191,377,081 $ 192,935,918 $ 1,558,837 0.8%$ 11,716,047 $ 10,293,930 $ (1,422,117) 0.0%$ 203,093,128 $ 203,229,848 $ 136,720 0.1% UT M.D. Anderson Cancer Center$ 280,102,024 $ 307,374,145 $ 27,272,121 9.7%$ 2,014,555 $ 1,322,299 $ (692,256) 0.0%$ 282,116,579 $ 308,696,444 $ 26,579,865 9.4% UT Health Science Center at Tyler$ 52,790,524 $ 54,694,858 $ 1,904,334 3.6% $ ‐ $ ‐ $ ‐ 0.0%$ 52,790,524 $ 54,694,858 $ 1,904,334 3.6% Texas A&M Health Science Center$ 132,084,029 $ 166,524,801 $ 34,440,772 26.1%$ 13,294,645 $ 10,006,371 $ (3,288,274) 0.0%$ 145,378,674 $ 176,531,172 $ 31,152,498 21.4% North Texas Health Science Center at Fort Worth$ 87,715,152 $ 105,190,539 $ 17,475,387 19.9%$ 11,027,308 $ 10,485,115 $ (542,193) 0.0%$ 98,742,460 $ 115,675,654 $ 16,933,194 17.1% Texas Tech University Health Sciences Center$ 164,174,067 $ 195,799,884 $ 31,625,817 19.3%$ 16,223,027 $ 13,406,568 $ (2,816,459) 0.0%$ 180,397,094 $ 209,206,452 $ 28,809,358 16.0%
HEALTH RELATED TOTAL$ 1,441,860,438 $ 1,574,925,499 $ 133,065,061 9.23%$ 93,149,373 $ 75,404,479 $ (17,744,894) 0.0%$ 1,535,009,811 $ 1,650,329,978 $ 115,320,167 7.5%
Baylor College of Medicine Undergraduate Medical Education$ 75,289,644 $ 73,805,256 $ (1,484,388) ‐2.0% $ ‐ $ ‐ $ ‐ 0.0%$ 75,289,644 $ 73,805,256 $ (1,484,388) ‐2.0% Baylor College of Medicine Graduate Medical Education$ 10,928,182 $ 10,918,817 $ (9,365) ‐0.1% $ ‐ $ ‐ $ ‐ 0.0%$ 10,928,182 $ 10,918,817 $ (9,365) ‐0.1%
BAYLOR COLLEGE OF MEDICINE TOTAL$ 86,217,826 $ 84,724,073 $ (1,493,753) ‐1.73% $ ‐ $ ‐ $ ‐ 0.0%$ 86,217,826 $ 84,724,073 $ (1,493,753) ‐1.7%
2/7/2013 Section 3b
LBB Recommendations General Revenue Compared to 2012‐13 Base Health Related Institutions
Total One‐Time Formula Institutional Total % GR Institution General Revenue Funding General Revenue Debt Service Operations General Revenue Variance 2012‐13* Inc/(Dec) Inc/(Dec) Inc/(Dec)** Inc/(Dec)* 2014‐15 GR Variance Biennium UT SOUTHWESTERN MEDICAL CENTER AT DALLAS$ 257,278,607 $ 4,815,587 $ (5,260) $ (8,000,000) $ 254,088,934 $ (3,189,673) ‐1.2% UT MEDICAL BRANCH AT GALVESTON$ 615,121,713 $ (142,932,771) $ 3,417,991 $ 10,903,987 $ ‐ $ 486,510,921 $ (128,610,792) ‐20.9% UT HEALTH SCIENCE CENTER AT HOUSTON$ 297,281,302 $ 10,554,215 $ 4,117 $ (11,000,000) $ 296,839,634 $ (441,668) ‐0.1% UT HEALTH SCIENCE CENTER AT SAN ANTONIO$ 266,615,042 $ 1,558,837 $ (4,380) $ (8,000,000) $ 260,169,499 $ (6,445,543) ‐2.4% UT M.D. ANDERSON CANCER CENTER$ 306,435,072 $ 27,272,121 $ (4,663) $ (8,000,000) $ 325,702,530 $ 19,267,458 6.3% UT HEALTH SCIENCE CENTER AT TYLER$ 71,856,579 $ 1,904,334 $ 2,050 $ (5,500,000) $ 68,262,963 $ (3,593,616) ‐5.0% TEXAS A&M HEALTH SCIENCE CENTER$ 202,402,799 $ 34,440,772 $ (36,105) $ (8,000,000) $ 228,807,470 $ 26,404,671 13.0% NORTH TEXAS HEALTH SCIENCE CENTER AT FORT WORTH$ 118,121,832 $ 17,475,387 $ (950) $ (5,000,000) $ 130,596,269 $ 12,474,437 10.6% TEXAS TECH UNIVERSITY HEALTH SCIENCES CENTER$ 299,713,120 $ 31,625,817 $ (946,866) $ (8,000,000) $ 322,392,071 $ 22,678,951 7.6%
TOTAL$ 2,434,826,066 $ (142,932,771) $ 133,065,061 $ 9,911,930 $ (61,500,000) $ 2,373,370,291 $ (61,455,775) ‐2.5%
* Amounts reflected here include all appropriations for Institutional Operations in HB 4, including those reported expended in 2011. Amounts in the 2012‐13 base in Sections 1 and 2 of this packet include only the amounts reported as expended by institutions in 2012‐13. ** Debt service amounts include tuition revenue bond debt service and debt service for Texas A&M Health Science Center's Round Rock campus.
Health Related Institutions 2/7/2013 Section 3c
Health Related Institutions Instruction and Operations Formula Cost Methodology House Introduced Bill maintains 2012-13 rate.
Cost of Weighted Full Time Student Equivalent Growth
Estimated Weighted Full Time Student Equivalent Change: 4,439
Weighted Full Time Student Equivalent Rate (annual): $8,874.46
Estimated Growth Cost (rate times WFTSE change times two): $78,786,322
Cost of Increase in Small Institution Supplement
2012-13 Small Class Supplement: $33,621,042
2014-15 Small Class Supplement: $43,135,442
Small Class Supplement Cost: $9,514,400
Change in statutory tuition (GR-D 770) for Instructions and Operations from 2012-13 to 2014-15 -$13,070,296
General Revenue Growth Cost in Instruction and Operations Formula $101,371,018
Research Formula Cost Methodology House Introduced Bill maintains 2012-13 rate.
2012-13 Base Period Research Expenditures: $1,708,468,606
2014-15 Base Period Research Expenditures: $1,813,143,351
Increase in Research Expenditures: $104,674,745
Research Formula Variable Rate (annual): 1.10%
General Revenue Cost of Research Growth (rate times expenditures increase times two): $2,296,708
Graduate Medical Education Formula Cost Methodology House Introduced Bill maintains 2012-13 rate.
2012-13 Base Period GME Expenditures: $56,916,442
Number of 2012 GME Residents 6,412
2012-13 Biennial GME Rate $9,364
General Revenue Cost of GME Growth (rate times resident growth minus 2012-13 amt): $3,127,706
Cancer Center Operations Formula Cost Methodology House Introduced Bill maintains 2012-13 rate.
2012-13 Base Period Cancer Center Operations Expenditures: $212,448,233
Number of 2012 Texas Cancer Patients 64,043
2012-13 Biennial Cancer Center Operations Rate $1,849
General Revenue Cost of Cancer Center Operations Formula (rate times Texas cancer patients times two minus 2012-13 amt): $24,382,781
Chest Disease Center Operations Formula Cost Methodology House Introduced Bill maintains 2012-13 rate.
2012-13 Base Period Chest Disease Center Operations Expenditures: $47,176,340
Number of 2012 Chest Disease Patients 72,138
2012-13 Biennial Chest Disease Center Operations Rate $340
General Revenue Cost of Chest Disease Center Operations Formula (rate times chest disease patients times two minus 2012-13 amt): $1,877,500
Sec 3_HRI Growth 2/7/2013 Section 3d Small Class Supplement
2014-15 Allocation
Preliminary Recommended Headcount Fall 2012-13 2014-15 Institutions 2012 Appropriations Appropriations
The University of Texas Southwestern Medical Center 2,274 $ - $ -
The University of Texas Medical Branch at Galveston 3,111 2,157,300 1,401,300
The University of Texas Health Science Center at Houston 4,414 8,382,702 7,506,172
The University of Texas Health Science Center at San Antonio 3,486 3,465,366 2,401,904
The University of Texas M.D. Anderson Cancer Center 382 - -
The University of Texas Health Science Center at Tyler 2 - 87,424
Texas A&M University Health Science Center 2,438 5,476,162 16,485,602
The University of North Texas Health Science Center 2,223 - -
Texas Tech University Health Sciences Center 5,029 14,139,512 15,253,040
TOTAL:$ 33,621,042 $ 43,135,442
Section 3_Small Class Supplement 2/7/2013 Section 3e
LBB Recommendations Tuition Revenue Bond Debt Service Health Related Institutions
Institution Difference 2014‐15 Base 2012 Base 2013 Requested 2014 Requested 2015 compared to 2012‐13
UT Southwestern Medical Center at Dallas $ 12,333,374 $ 12,331,036 $ 12,328,747 $ 12,330,403 $ (5,260) UT Medical Branch at Galveston $ 11,552,702 $ 11,808,260 $ 17,086,741 $ 17,178,208 $ 10,903,987 UT Health Science Center at Houston $ 12,557,128 $ 12,559,883 $ 12,562,560 $ 12,558,568 $ 4,117 UT Health Science Center at San Antonio $ 9,713,206 $ 9,708,639 $ 9,710,410 $ 9,707,055 $ (4,380) UT M.D. Anderson Cancer Center $ 5,916,588 $ 5,915,150 $ 5,914,275 $ 5,912,800 $ (4,663) UT Health Science Center at Tyler $ 2,577,756 $ 2,576,719 $ 2,575,975 $ 2,580,550 $ 2,050 Texas A&M Health Science Center $ 4,413,931 $ 4,413,915 $ 4,396,628 $ 4,394,255 $ (36,963) North Texas Health Science Center at Fort Worth $ 7,302,663 $ 7,244,813 $ 7,249,513 $ 7,297,013 $ (950) Texas Tech University Health Sciences Center $ 12,915,539 $ 12,913,868 $ 12,512,387 $ 12,370,154 $ (946,866)
Total Health Related Institutions $ 79,282,887 $ 79,472,283 $ 84,337,236 $ 84,329,006 $ 9,911,072
Health Related Institutions 2/7/2013 Section 3f Percentage of Funds Inside of Bill Pattern Percent of Funding Outside the Appropriated Sources Total Inside Institutions Institution's Bill Total (Inside the GAA) the Bill Pattern Pattern UT Southwestern Medical Center at Dallas$ 278,262,331 $ 3,833,634,137 $ 4,111,896,468 6.8% UT Medical Branch at Galveston$ 525,633,340 $ 2,675,816,794 $ 3,201,450,134 16.4% UT Health Science Center at Houston$ 345,135,047 $ 1,723,285,757 $ 2,068,420,804 16.7% UT Health Science Center at San Antonio$ 303,984,302 $ 1,248,165,308 $ 1,552,149,610 19.6% UT M.D. Anderson Cancer Center$ 344,024,306 $ 7,735,235,362 $ 8,079,259,668 4.3% UT Health Center at Tyler$ 73,984,967 $ 190,796,040 $ 264,781,007 27.9% Texas A&M Health Science Center$ 259,243,484 $ 179,141,279 $ 438,384,763 59.1% University of North Texas Health Science Center$ 151,443,347 $ 273,727,322 $ 425,170,669 35.6% Texas Tech Health Sciences Center$ 359,502,465 $ 1,101,183,175 $ 1,460,685,640 24.6% Total, All Health-Related Institutions:$ 2,641,213,589 $ 18,960,985,174 $ 21,602,198,763 12.2%
Section 3_Percentage of Funds Section 4 Health Related Institutions Performance Review and Policy Report Highlights
Report Savings/ Gain/ Fund Included Reports & Recommendations Page (Cost) (Loss) Type in Introduced Bill Action Required During Session
NO RELATED RECOMMENDATIONS
Sec4_Agency HRI.xlsx 2/7/2013 Section 5
Health Related Institutions Rider Highlights
1) The University of Texas Medical Branch at Galveston
Rider 6, Transfers of Appropriations – State Owned Hospitals. Rider amended to authorize the institution to make intergovernmental transfers of funds to the Health and Human Services Commission.
New Rider 11, Informational Listing – University of Texas Medical Branch at Galveston Patient Income. New rider reflecting the institution’s estimated patient income revenue for the 2014-15 biennium.
2) The University of Texas Health Science Center at Houston
New Rider 6. Early Childhood School Readiness Program. New rider to reflect existing early childhood school readiness program that is funded through the Texas Education Agency and transferred to the institution.
New Rider 7. Informational Listing – University of Texas Health Science Center at Houston Patient Income. New rider reflecting the institution’s estimated patient income revenue for the 2014-15 biennium.
3.) The University of Texas Health Science Center at San Antonio
New Rider 6. Informational Listing – University of Texas Health Science Center at San Antonio Patient Income. New rider reflecting the institution’s estimated patient income revenue for the 2014-15 biennium.
4.) The University of Texas M.D. Anderson Cancer Center
Rider 4, Transfers of Appropriations – State Owned Hospitals. Rider amended to specifically authorize the institution to make intergovernmental transfers of funds to the Health and Human Services Commission.
New Rider 9. Informational Listing – University of Texas M.D. Anderson Cancer Center Patient Income. New rider reflecting the institution’s estimated patient income revenue for the 2014-15 biennium.
Sec5_HRIs.docx 2/7/2013 Section 5
5.) The University of Texas Health Science Center at Tyler
Rider 4. Transfers of Appropriations – State Owned Hospitals. Rider amended to authorize the institution to make intergovernmental transfers of funds to the Health and Human Services Commission.
New Rider 6. Informational Listing – University of Texas Health Science Center at Tyler Patient Income. New rider reflecting the institution’s estimated patient income revenue for the 2014-15 biennium.
6.) Texas A&M University Health Science Center
New Rider 9. Informational Listing – Texas A&M University Health Science Center Patient Income. New rider reflecting the institution’s estimated patient income revenue for the 2014-15 biennium.
7.) University of North Texas Health Science Center
Rider 7. College of Pharmacy. Rider modified to reflect that appropriations are to be utilized for support for the program now that it has been established.
8.) Texas Tech University Health Sciences Center
Rider 7. Transfers of Appropriations. Rider deleted due to recommendation to include new rider in Special Provisions to allow the Health Related Institutions to provide intergovernmental transfers to maximize federal funds under the new Medicaid 1115 waiver.
Sec5_HRIs.docx 2/7/2013 Section 6 Health Related Institutions Items not Included in the Recommendations 2014-15 Biennial Total GR & GR- Dedicated FTEs 1) Exceptional Items University of Texas Southwestern Medical Center $ 25,460,000 54.1 University of Texas Medical Branch at Galveston $ 29,520,000 0.0 University of Texas Health Science Center at Houston $ 38,115,074 49.6 University of Texas Health Science Center at San Antonio $ 35,755,432 171.0 University of Texas M.D. Anderson Cancer Center $ 13,660,000 1.0 University of Texas Health Science Center at Tyler $ 6,870,000 15.0 Texas A&M University Health Science Center $ 60,601,412 96.5 University of North Texas Health Science Center $ 22,688,314 95.0 Texas Tech University Health Sciences Center $ 32,861,604 0.0 Total Health Related Institutions' Exceptional Items $ 265,531,836 482.2
Rider Changes Not Included in the Recommendations
2) The University of Texas at Medical Branch at Galveston a) Rider 6. Transfer of Appropriations - State Owned Hospitals. The institution is requesting to delete this rider because it has been associated with the Upper Payment Limit (UPL) and Disproportionate Share (DSH) programs. The rider does apply to the new Medicaid 1115 Waiver programs.
3) The University of Texas Health Science Center at Houston a) New Rider. Early Childhood School Readiness Program. The institution is requesting a new rider that requires appropriations made to the Texas Education Agency for early childhood school readiness programs be transferred to the University of Texas Health Science Center at Houston. Recommendations include an information rider in the institution's bill pattern. b) New Rider. School Readiness Models. The institution is requesting a new rider that is identical to Texas Workforce Commission Rider 28, related to school readiness models.
4) The University of Texas Health Science Center at San Antonio a) Rider 3. Unexpended Balances Between Fiscal Years: Regional Academic Health Center (RAHC). The institution is requesting authority to utilize these appropriations for student travel expenses incurred by students during their required rotations between the San Antonio, Harlingen, and Edinburg campuses. b) Rider 4. Unexpended Balances Between Fiscal Years: Regional Campus - Laredo. The institution is requesting authority to utilize these appropriations for student travel expenses incurred by students during their required rotations between the San Antonio, Harlingen, and Edinburg campuses. c) Rider 5. Regional Campus - Laredo. The institution is requesting deletion of this rider.
5) The University of Texas M.D. Anderson Cancer Center a) Rider 4. Transfer of Appropriations - State Owned Hospitals. The institution is requesting to delete this rider because it has been associated with the Upper Payment Limit (UPL) and Disproportionate Share (DSH) programs. The rider does apply to the new Medicaid 1115 Waiver programs.
6) Texas A&M University Health Science Center a) Rider 3. Cardiovascular Research Institute. The institution is requesting modification of this rider to eliminate specific limitations on expenditures for the program. b) Rider 4. Coastal Bend Health Center. The institution is requesting modification of this rider to eliminate specific limitations on expenditures for the program. c) Rider 7. Research on Acute Neurological Injuries. The institution is requesting modification of this rider to eliminate specific limitations on expenditures for the program.
d) New Rider. Multiple Locations. The institution is requesting a new rider to identify its multiple campuses for inclusion for the small campus supplement formula allocation.
e) New Rider. Transfer of Appropriations. The institution is requesting a new rider to give it the authority to make intergovernmental transfers to the Health and Human Services Commission. Recommendations include a new rider in Special Provisions Relating only to State Agencies of Higher Education that would authorize the Health Related Institutions to provide intergovernmental transfers to the commission to maximize federal funds under the new Medicaid 1115 waiver.
7) Texas Tech University Health Sciences Center a) Rider 3. South Texas/Border Region Health Professional Education. The institution is requesting deletion of this rider.
b) Rider 7. Transfers of Appropriations. The institution is requesting modification of this rider. Recommendation is to delete it due to new recommended rider in Special Provisions Relating only to State Agencies of Higher Education that would authorize the Health Related Institutions to provide intergovernmental transfers to the commission to maximize federal funds under the new Medicaid 1115 waiver.
Section 6 2/7/2013 Section 6 Health Related Institutions Items not Included in the Recommendations 2014-15 Biennial Total GR & GR- Dedicated FTEs c) Rider 8. Abilene Pharmacy School. The institution is requesting modification of this rider to include all academic programs for purposes related to the small class supplement formula allocation.
d) Rider 9. Cancer Research. The institution is requesting modification of this rider to eliminate specific appropriation amounts.
Section 6 2/7/2013 FY2014-2015 Legislative Appropriations Request
Hearing before the House Appropriations Committee Article III Subcommittee The Honorable John Otto, Chairman
Dr. David L. Callender President The University of Texas Medical Branch February 15, 2013 Our Deepest Gratitude • Legislative support has made it possible for UTMB to serve the people of Texas for more than a century • Your continued investment in our mission will ensure a healthier tomorrow for our state and beyond
Working Together to Work Wonders 2 UTMB at a Glance • Texas’ first academic medical center (1891) • $1.6B annual budget • 11,700 employees statewide • 84-acre, 111-building campus in Galveston • 65-acre campus + 30 locations on mainland • Southernmost member of Texas Medical Center • Statewide impact — $30B spending; 211K jobs
Working Together to Work Wonders 3 Our Mission, Vision and Values
•UTMB’s mission is to improve health for the people of Texas and around the world.
•UTMB’s vision is working together to work wonders as we define the future of health care and strive to be the best in all of our endeavors.
•UTMB’s values are compassion • integrity • respect • diversity • lifelong learning
Working Together to Work Wonders 4 Training the Health Care Workforce
• Schools of Medicine, Nursing, Health Professions, Graduate Biomedical Sciences • Highest enrollment ever in Fall 2012 >3,000 • >800 new health professionals annually • 568 MD residents in training • 26,800 living alumni; ~17,000 in Texas • National leader in student diversity • Leader in health professions education • Team-based training with focus on problem-based, small-group learning; early exposure to clinical experiences
Working Together to Work Wonders 5 Expanding Biomedical Knowledge
• ~$127M in research expenditures
• Record number of patents issued
• A leader in translating scientific discovery into better treatments for patients • Excellence in infectious diseases/vaccines, asthma, burns, aging-related chronic diseases (neurodegenerative diseases, cancer, heart disease)
• Home to only national BSL4 laboratory in Texas; one of world’s largest university-based vaccine-development centers
Working Together to Work Wonders 6 A Statewide Health Care Resource
• 681,000 outpatient visits + 26,500 inpatient admissions in FY12 • Comprehensive inpatient services • Excellence in women’s and children’s health, geriatrics, ENT, burn care, transplants, diabetes and metabolic disorders, neurological diseases • Level I Trauma Center; 1 of 3 serving patients of all ages in Southeast Texas • Extensive outpatient and Regional Maternal and Child Health network (80+ clinics, 40+ sites) • Anchor for 16-county Region 2 in Medicaid waiver
Working Together to Work Wonders 7 Strong Commitment to Excellence
www.utmb.edu/magnet-2012
www.utmb.edu/the-joint-commission-2012
Working Together to Work Wonders 8 The Road Ahead: Strategic Vision 2013-2015
• All UTMB efforts linked to university’s Strategic Plan, consistent with UT System Chancellor’s Framework for Excellence • Progress tracked continually; ongoing planning process enables strategic flexibility in response to changes in environment • FY 2014-2015 Legislative Appropriations Request based on priorities identified in current Strategic Plan • Priorities critical to success of institution’s mission
Working Together to Work Wonders 9 UTMB’s Legislative Appropriations Request
• Growth in formula funding to support: − Education of health workforce needed for Texas, now and in the future, including undergraduate and graduate medicine, nursing, health professions, and biomedical research − Necessary infrastructure − Research critical to solving the health problems of the state and nation • Continuation of 2012-2013 levels of funding for Health System and existing special items • New Special Item funding for vaccine development, regenerative medicine, emerging infectious disease research • TRB funding for Interprofessional Education Building
Working Together to Work Wonders 10 Exceptional Items
Trans-Texas Vaccine Institute — $4 million/year • Creates multi-agency institute to support collaborative projects that expedite the development and production of needed vaccines • Builds on success of UTMB’s interdisciplinary Sealy Center for Vaccine Development; maximizes impact of expertise found throughout Texas’ higher education community • Will make Texas a national leader in vaccine development and production
Working Together to Work Wonders 11 Exceptional Items
Regenerative Medicine Matching Grant — $3 million/year • Provides two years of funding to leverage new 3-year, $3-million-per-year Moody Foundation grant • Supports multidisciplinary project to create agents capable of reversing trauma-induced alterations in the brain to restore lost function • Advances the treatment of brain and spinal cord injuries through groundbreaking research
Working Together to Work Wonders 12 Exceptional Items Combating Texas’ Emerging Infections — FY14 $4.05 million FY15 $4.5 million • Expands UTMB’s expertise in combating emerging infectious diseases; fosters collaboration with other Texas institutions • Focuses on development of artificial organs and tissues that mimic human organs to facilitate testing of drugs and vaccines designed to combat dangerous infectious diseases • Builds on substantial federal and state investment in Galveston National Lab, expanding its benefits to institutions throughout Texas
Working Together to Work Wonders 13 Exceptional Items TRB: Interprofessional Education Building — $40 million • Matches $40 million in philanthropic funding to be raised for new 200,000- square-foot educational building • Provides classroom, lecture hall, simulation laboratory, office and support space for schools of Medicine, Nursing, and Health Professions • Supports interdisciplinary education and increased enrollment needed to address Texas’ current and future health care needs
Working Together to Work Wonders 14 Important Updates: Medicaid Waiver
• UTMB anchor for 16-county East Texas region (1.5 million population; 25% uninsured, 27% Medicaid)
• As both anchor and RHP participant, UTMB collaborating with ~100 organizations in region and beyond in planning process to expand health promotion, primary and specialty care, behavioral health care, and innovative/accessible health system design to communities throughout region and state
• UTMB looks forward to working with regional partners, Health and Human Services Commission, and state leaders to help Texas realize waiver’s full promise
• Ongoing updates available at: www.utmb.edu/1115
Working Together to Work Wonders 15 Important Updates: Ike Recovery Success
• >80% of Ike-related repairs/mitigation complete; UTMB working with FEMA to get final approval on remaining recovery projects • Final draw on Ike recovery funding from state anticipated before June 2013; expect no need for any further action by the 83rd Legislature
Working Together to Work Wonders 16 Important Updates: Correctional Managed Care
• TDCJ and UTMB successfully established contractual arrangement for FY 2013 and are working with leadership on arrangement for future years • TDCJ’s LAR contains request for FY2014-2015 CMC funding; TDCJ working with UTMB and Texas Tech on supplemental request it will submit for FY2012-2013 • UTMB will continue to work with TDCJ and state leadership to ensure most effective and efficient means of providing health care for Texas’ inmate population
Working Together to Work Wonders 17 THANK YOU for all you do for UTMB’s students, patients, faculty, staff and the communities we serve.
Working Together to Work Wonders 18 House Committee on Appropriations Testimony
Daniel K. Podolsky, M.D. President February 15, 2013 UTSW Providing Outstanding EDUCATION for Students from across Texas
. Medical School – One of the largest in the nation and in Texas with ~1,000 students – Nationally ranked by US News & World Report #20 in Research and #21 in Primary Care – most highly ranked in Texas . Graduate School of Biomedical Texas Student Origin Sciences – Training ~1,200 graduate students and fellows, the largest biomedical sciences student program in Texas . School of Health Professions – Offering 8 degree programs to ~400 students – Physician Assistant program ranked #8 in the nation
2 GRADUATE MEDICAL EDUCATION Training Primary and Specialty Care Physicians to Serve the Entire State of Texas . ~1,600 residents, largest program in state covering North to Central Texas . Primary Care: over 40% or ~600 residents in primary care – among largest in the nation . Specialty Care: Training in vital shortage areas that only HRIs can provide
. Graduating ~400 doctors/year GME Program Sites . In FY11, 73% of our residents remained to practice in Texas
3 RESEARCH
. 10:1 return on every State $1 invested . 9% per year compounded growth in last two decades
. Made possible only through recruitment/retention of top scientists 450 418 375 331
300 . 5 Nobel Laureates – 4 179 remain active faculty 225 (millions)* 132 . 150 95% of National Academy of 88 Sciences and 64% of
Dollars 75 Institute of Medicine - members, and 100% of all 1989 1996 2001 2006 2012 Howard Hughes Research Expenditures per Fiscal Year Investigators at Texas’ State *Includes State, VA, and HHMI HRIs
4 PATIENT CARE Treating Patients from throughout Texas and Beyond
. Over 500,000 patients treated in FY 2011 . Patients treated at UT Southwestern University Hospitals, Parkland, VA, Dallas Children’s, Austin Seton Hospitals and other sites across Texas . Providing the only NCI-designated Cancer Center in North Texas
. Do not receive patient UTSW Patient Origin care funds from the State
. $140 Million+ in uncompensated indigent care provided by UTSW physicians (~10% of entire University expense)
5 PROGRESS REPORT: Center for Obesity, Diabetes and Metabolism Research Established FY08, thorough THECB review September 2012 – highest scores received
In FY11 and FY12 alone, Center researchers and students: . Brought $159M in competitive grants to Texas, filed or issued 66 patents . Offered >225 collaborative lectures to disseminate research advances . Taught >7,500 Dallas ISD elementary students about diet and exercise for obesity prevention Groundbreaking bench-to-bedside developments in patient care: . A new cholesterol-controlling drug already in trials with patients showing reductions of up to 75% for up to 3 months with one dose . A way to regenerate heart’s own cells to heal injury caused by heart attack and other disease, with drugs in development . A new way to control Type 1 diabetes for weeks – and reverse diabetic shock – with only a single dose and better than insulin injections
6 ENGINE FOR ECONOMIC DEVELOPMENT
$331 million/year in external research grants brought to Texas
4,000 high-skill scientific jobs, >11,000 jobs total
Biotech Companies Founded by UT Southwestern Faculty . 14 start-up companies formed, raising over $1.6 billion in financing
Licensing Deals through FY 2012 . 590 discoveries licensed to biotech and drug companies for development . $148 Million in revenues generated . Resulted in the launch of such widely-used drugs as Citrical
BioCenter for Industrial Collaboration and Incubation . Opened 2010 with 100K square feet for industrial partners and collaborations, financed with tech transfer revenue
7 LEGISLATIVE PRIORITIES
8 IMPACT OF LOSS OF FY12-13 HB 4 FUNDS IN HB 1 BASE BILL HB 4 Supplemental passed in 82nd Session appropriated the following to UTSW for FY12-13 that is repurposed or discontinued in FY14-15: . $8.9M for I&O, Infrastructure, Research and GME Formula operations . $8.0M for Institutional Operations
HB 4 Funding Decisions made in HB 1 Base for FY14-15: . $8.9M used to fund I&O enrollment growth across all HRIs . $8.0M Institutional Operations funds are swept
Impact on UT Southwestern: . Reallocation of HB 4 Formula-based funds and total loss of Institutional Operations funds results in loss of $8.7M to UTSW
PRIORITY: Restore HB 4 $8M Institutional Operations funds to UTSW 9 STATEWIDE LEGISLATIVE PRIORITIES
1) Excellence Fund to invest in at-capacity State medical schools and in research programs key to Texas’ economy Consistent with the push for performance-based funding and recent efforts to increase research and excellence at academic institutions 2) GME Formula Investment ($28M/biennium to restore 28% cut and provide ~1/3rd of the $18K cost/yr per resident) State support needed to help UTSW maintain its residency programs, some of the largest in the country Vital as Texas medical schools graduate more needed physicians than can be absorbed in GME slots in the state Needed as Texas’ growing population steadily contributes to an increasing physician shortage – in primary and specialty care Needed as evidence continues to show that the single best source of practicing doctors for Texas is an increase in residency positions
10 LAR EXCEPTIONAL ITEM REQUEST #1 1) Texas Institute for Brain Injury and Repair Focus of Institute for Translational Research Exceptional Item ($15M/biennium start-up investment to sunset after 4 biennia)
UTSW poised to advance TBI prevention, brain preservation and restoring brain function for veterans, athletes, and accident victims across Texas Spearheaded by two renowned recently-recruited Neurology and Neurosurgery chairs, the latter a co-chair of the NFL Head, Neck and Spine committee setting care standards for concussive injury Institute will be a national force for TBI prevention and treatment by: Delivering comprehensive and innovative patient care Leveraging basic science strengths to uncover the basis of brain injury Pursuing translational research to more quickly develop new treatments Developing biomaterials and neurotechnologies to reduce injury risk and improve damaged brain function, and Creating Concussion Network to teach students, parents, coaches, and school personnel diagnosis and preventive strategies for TBI
11 LAR EXCEPTIONAL ITEM REQUEST #1 1) Texas Institute for Brain Injury and Repair (cont’d)
UT Dallas and other collaborators across Texas and U.S. will provide: Critical engineering, computer and materials science expertise
NFL and DOD support TBI Institute at UTSW as: Hub for groundbreaking basic and translational TBI research
With State investment, UTSW will be positioned to compete for hundreds of millions of TBI dollars available and to bring these funds to Texas: $100M committed by NFL over 10 years – plus $30M in FY13 $166M committed by NIH in FY13 alone Millions more committed by NIH, DOD, VA, CDC and HRSA Start-up funds critical to fostering TBI discoveries – with great promise for improving patient care and terrific ROI for Texas – into novel patient therapies
12 LAR EXCEPTIONAL ITEM REQUEST #2
2) North Campus Vivarium and Research Facilities ($15 M/biennium debt service for $60 million TRB)
. Without additional animal research quarters, UTSW will NOT be able to accommodate current faculty’s research needs, meet recruitment goals, or continue research productivity
. Impact of lost medical discoveries to advance cancer, diabetes, Alzheimer’s, and a myriad of other devastating diseases incalculable
. 74% of total project will come from institutional funds
13 UT SOUTHWESTERN A TEXAS RESOURCE
. Educating students from across Texas
. Graduating primary and specialty care physicians who are practicing across urban and rural Texas
. Treating patients from across Texas
. Conducting groundbreaking research for Texans
THANK YOU
14 Texas House Committee on Appropriations Subcommittee on Article III
Giuseppe Colasurdo, MD President and Dean, Medical School
February 15, 2013 T Major changes in health care education, policy EXAS and practice H OUSE
• Academic health science centers face significant uncertainty C
as funding sources undergo major changes ON OMMITTEE o Affordable Care Act o Texas Medicaid 1115 Waiver • Funding for education and research continues to decline
o Effective decreases in per student formula funding levels A PPROPRIATIONS o National Institutes of Health and other funding agencies • Group practices and hospital partners face declining margins o Implementing new models of care based on quality o Reimbursement still based on fee-for-service
2 T EXAS Texas’ critical health care needs H OUSE • Texas ranks 48th in the number of primary care physicians per 100,000 population C
• Texas needs 70,000 new nurses by 2020 ON OMMITTEE • 85% of the public health workforce in Texas has no formal training in public health • Implementation of federal health care reform will require a larger health care workforce
• 75% of health care expenditures go toward largely preventable chronic A diseases, many due to lifestyle choices PPROPRIATIONS • Texas has an uninsured rate at 25%. In Harris County, 1 in 3 adults have no health insurance • In Harris County, 1.1 million people, including 509,000 children and adolescents, suffer from mental illness • Children entering kindergarten without the basic cognitive skills necessary for success
3 T EXAS About UTHealth H OUSE • Now celebrating its 40th anniversary, UTHealth educates more health care professionals than any other institution in Texas - more than 5,000 annually -
through schools of medicine, nursing, dentistry, public health, biomedical C informatics and biomedical sciences ON OMMITTEE • Medical School is the 6th largest in the nation and has the fastest-growing academic clinical program in the country (AAMC, 2006-2011) • School of Public Health has grown its enrollment by 40% and is currently the 4th largest school of public health in the country
• School of Nursing is ranked in top 5% nationally A PPROPRIATIONS • Founded in 1905, the School of Dentistry celebrated the opening of its new $155M building in June 2012 • Graduate School of Biomedical Sciences home to the only genetic counseling program in the state and one of the best in the country, and one of the highest ranked Medical Physics programs in the world • School of Biomedical Informatics is unique in the nation and is home to world experts in cognitive informatics
4 T EXAS UTHealth – Landmark Discoveries H OUSE • Nitric oxide signaling molecule -1998 Nobel Prize
• PET and coronary disease C MITEON OMMITTEE • Population genetics and health disparities - heart disease, diabetes, obesity • Genetics of aortic aneurysms • Immunosuppression and organ transplantation A • Genetics of autoimmune and rheumatologic disorders PPROPRIATIONS • Academy for Patient Quality and Safety - national leaders, developed new standards of care for women and children • Cellular therapy in cancer, traumatic brain injury and stroke • Stroke therapy with tPA - NEJM 1997 (named the 9th most important paper in the 200-year history of NEJM)
5 T EXAS UTHealth - Leading the “New Healthcare” H OUSE • Serves more than one million patients annually with comprehensive, multi-specialty care, including life-saving care at one of the nation’s busiest trauma centers, and
provided more than $68 million in unsponsored charity care in FY 2012 C MITEON OMMITTEE • School of Nursing has developed innovative academic programs to address the nursing shortage and prepare nurses for a larger role in primary care
• The School of Public Health has regional campuses in Austin, Brownsville, Dallas, El Paso and San Antonio to meet Texas’ public health needs, including addressing chronic disorders and health disparities A PPROPRIATIONS • The School of Biomedical Informatics is a national leader in research and improvement of electronic health records - helping to streamline the exchange of information, increase patient safety and lower costs
• The UTHealth Harris County Psychiatric Center delivers a comprehensive program of psychiatric services to children, adolescents and adults
• The Children’s Learning Institute is conducting cutting-edge research on techniques to enhance a child’s home and learning environment
6 T EXAS House Bill 1 H OUSE • Formula funding rates remain below FYs 2000-2001 levels C MITEON OMMITTEE
Changes in Formula Funding by Unit, FY 2000‐2001 compared to FY 2012‐2013 and HB1 FY 2014‐2015
% Change %Change FY 2000- FY 2012- HB 1 as Funding Unit 00-01 to 00-01 to
2001 2013 filed A 12-13 HB 1 PPROPRIATIONS
Full Time Student Equivalent $11,383 $8,874 -22% $8,874 -22% (I&O)
Research Dollar Expended 2.85% 1.10% -61% 1.10% -61% (Research)
Per Square Foot Infrastructure $11.18 $6.55 -41% $6.36 -43% (Infrastructure)
Graduate Medical Education $6,653 $4,635 -30% $4,682 -30% (GME) (2010-11)
7 T Legislative Appropriations Priorities EXAS
Formula Funding H OUSE
Per Student Funding, FY 2000‐01 through FY 2014‐15 C
$12,000 ON OMMITTEE $11,500 $11,000 $10,500
$10,000 A PPROPRIATIONS $9,500 $9,000 $8,500
8 T Legislative Appropriations Priorities EXAS
Formula Funding H Workforce Shortage OUSE Physician to Population Ratio in Texas
Total Total 2011 State 2011 Med 2011 GME 2011 Med C Population Physician 2011 State
Physician Physician Rank of School Grad Resident in School + ON OMMITTEE Growth and increase Rank of State Population Population Active* in State State GME Rate 1990 over last 20 GME per per 100,000 per 100,000 Physicians Retention Retention Retention to 2010 years 100,000 1990 2011 per 100,000 Rank Rank Rank 7.5 million California +15,000 272 256 23 28 1 2 5 25.2% 5.9 million Florida +15,000 251 255 17 42 8 4 7 45.3% 1.4 million Illinois +6,000 229 260 25 10 27 15 33 12.2% A PPROPRIATIONS 0.5 million Massachusetts +5,000 364 416 1 1 9 28 37 8.8% 0.4 million Mississippi +1,500 144 176 50 43 4 13 8 15.3% 1.3 million New York +7,500 339 348 3 2 26 25 35 7.7% 0.7 million Ohio +6,300 213 264 22 6 23 30 24 6.4% 0.8 million Pennsylvania +6,000 256 302 11 5 32 35 36 6.9% 8.1 million Texas +17,000 188 205 46 23 2 5 3 48.0% Texas ranks 3rd among states in keeping its physicians but still ranks 46th in physician to 9 population ratio. T Legislative Appropriations Priorities EXAS
Exceptional Item: Center for Healthcare Quality and Safety H • New educational mission requires the highest standards and new OUSE culture for patient care and experience C
• Improving patient care and outcomes requires evidence-based ON OMMITTEE medicine, quality improvement and research • UTHealth is a national leader on the forefront of innovative programs in healthcare quality and patient safety
A $ 4.75 million/year requested to: PPROPRIATIONS o Continue to lead the nation in clinical and translational sciences o Expand successful Comprehensive Care Model from children to adult models in chronically ill adults o Expand current quality programs in our teaching hospitals and clinics o Faculty recruitment
10 T Legislative Appropriations Priorities EXAS
Exceptional Item: Psychiatry and Behavioral Sciences H OUSE • UT Psychiatry and Behavioral Sciences faculty staff UT Harris County Psychiatric Center - primary mental health leadership in C MITEON OMMITTEE region • Funding for mental health education and research is extremely low relative to disease burden • Texas ranks 49th in the country for the number of mental health A
providers per 100,000 population PPROPRIATIONS
$2.025 million/year requested to support clinical research and faculty recruitment
11 T Legislative Appropriations Priorities EXAS
Exceptional Item: Family Practice Nursing H OUSE
• Texas currently ranks 44th in the nation for number of registered C
nurses per 100,000 population ON OMMITTEE • Need to train an additional 70,000 nurses by 2020 just to maintain current ratio • ACA will create influx of newly-insured patients – need to provide them with access to health care providers A
• Family nurse practitioners provide broadest range of primary care PPROPRIATIONS services
$ 2.090 million/year requested to increase FNP’s in the Gulf Coast Region
12 T Legislative Appropriations Priorities EXAS
Exceptional Item: Tuition Revenue Bond H OUSE • Since 2002, enrollment has increased by 38% and faculty has grown by 28% C
• Many facilities constructed in 1970s are currently in need of major ON OMMITTEE updates to: o Replace end of useful life infrastructure o Restructure to accommodate growth in class sizes o Modernize to provide additional research space appropriate for
today’s technology A PPROPRIATIONS • A recent facilities audit found: o 1.4 million square feet of educational and research space is in critical need of renovation and modernization o $167 million worth in renovation and modernization to three aging buildings - the Medical School, the Houston campus of the School of Public Health and the University Center Tower (home to the School of Biomedical Informatics)
Requesting $116.9 million in TRBs with a $10.19 million debt service 13 T
Legislative Appropriations Priorities EXAS UT Harris County Psychiatric Center Article II, State Health Services Department H OUSE • Founded in 1986, UTHCPC was called the “Miracle of McGovern” • Largest inpatient psychiatric facility outside of the county jail – currently at capacity C
• Provides care for catastrophic mental disorders in underserved populations ON OMMITTEE • Goal is to become the leading academic psychiatric hospital in the country
Request: maintain level funding, including recent contracts for competency restoration and acute care beds
o $47 million/biennium baseline appropriations A PPROPRIATIONS o $8.4 million/biennium for competency restoration o $6.4 million/biennium for acute care beds UTHCPC request is consistent with Department of State Health Services Legislative Appropriations Request $6.7 million in pending deferred maintenance/HVAC renovations at UTHCPC State Health Services Department has requested $4,278,502 from General Obligation bonds/debt service is $62,299/biennium
14 T Legislative Appropriations Priorities EXAS
Children’s Learning Institute (CLI) H OUSE • Nationally known experts in education, development and psychology • Research supports evidence-based medicine for learning, development, autism and ADHD C MITEON OMMITTEE • Early educational intervention can have substantive short- and long-term effects on cognition, social-emotional development, school progress, antisocial behavior, and even crime (Science 333, August 2011) • Texas School Ready! Project serves over 2000 classrooms and 40,000 kids • Goal is to continue scale up of programs, add long distance models and increase cost efficiency A PPROPRIATIONS
Children’s Learning Institute/Texas School Ready! Project base funding: o $3.5 million/year Texas Education Agency (General Revenue) o $11.7 million/year Texas Workforce Commission (federal funds) HB1: Level funding (consistent with both TEA and TWC Legislative Appropriations Request)
• Grateful for your support of this important and innovative program
15 T EXAS H OUSE C MITEON OMMITTEE A PPROPRIATIONS
16
Kenneth L. Kalkwarf, DDS, MS President, ad interim The University of Texas Health Science Center at San Antonio House Appropriations Subcommittee on Higher Education 83rd Session
(February 15, 2013)
Chairman and members of this committee, I am Ken Kalkwarf, interim president of the University of Texas Health Science Center at San Antonio and I am pleased to be here today.
The future of our State is dependent on the education and health of our citizens and our Health Science Center plays an important role in producing healthcare professionals and improving the health of Texans in the communities we serve.
Our current programs graduate, each year, 210 physicians, 90 dentists, 380 nurses, and 220 allied health professionals who will care for us and future Texans. In addition, we annually train over 1,000 interns, residents, and fellows, over 65% of whom will remain in Texas to care for our citizens. With a growing and aging population, our state faces a tremendous challenge in those requiring our care.
Our scientists are responsible for generating $193 million annually in research and other sponsored programs in superb research programs in aging, infectious disease, cancer, diabetes, neurosciences and oral health. We are a chief catalyst for the $29.2 billion biosciences and healthcare industry in the San Antonio area that employs over 150,000 Texans and provides more than 5.5 million patient visits per year. Last year our faculty physicians, nurses, dentists and allied health professionals provided more than 1.2
1
million patient visits and $20 million in uncompensated care to Texans in San Antonio and South Texas.
We have a legislative mandate (and we are proud) to provide medical education and clinical services as well as conduct basic science research at the RAHC in Harlingen and Edinburg and at our Regional Campus Laredo. Our progress to date in improving the educational and research infrastructure in the Rio Grande Valley has made feasible the possibility of a new medical school in the Valley in the near future.
The proposed 2014‐15 biennial budget in House Bill 1, as introduced, is $6.4 million less than our current 2012‐13 state appropriations, as authorized by the 82nd session through HB1 and HB4 appropriations. Another $6.4 million cut, in addition to the $51.5 million cut during the 82nd session, will make it extremely difficult for us to maintain current efforts in support of our critical missions of education, healthcare, and research at our main campus in San Antonio and at our campuses in South Texas Border Region, an epicenter of a rapidly expanding population. While difficult, we have successfully managed the effects of the 82nd budget reductions, while minimizing the impact to our primary missions and we will continue to work to find additional efficiencies in our program offerings. I respectfully ask this subcommittee to not make further cuts in our current base budget, but to make additional needed investments in our institution through enhanced formula and non‐formula funding for the 2014‐15 biennium, per the following recommendations.
Pursuant to our 83rd LAR, our legislative funding priorities for the 2014‐15 biennium support the THECB recommendations (agreed to by Texas’ Health Related Institutions) for enhanced formula funding and graduate medical education funding to help us all address the State’s health care workforce needs. We also request $36 million of enhanced non‐formula (special item) funding to support the following mission critical programs:
$4 million for the San Antonio Life Sciences Institute to enhance research and education between UTSA and the Health Science Center. SALSI enhances research funding at each institution and provides new
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advanced degree opportunities for our students. SALSI fosters collaboration and alignment where there would be none by providing seed funding incentives for researchers and educators at each institution. Please know that the merits of our SALSI initiative were duly recognized and authorized by the 80th legislature and funded by the 81st Legislature at $4 million for each institution. The 82nd, due to the state’s financial crunch, did not fund SALSI. I ask, respectfully, that the 83rd restores our funding to continue our successful efforts with UTSA.
We request enhanced funding of $20.9 million to expand the Regional Academic Health Center in Harlingen and Edinburg to support the programmatic and infrastructure needs as outlined in The University of Texas System’s road map. This request is in addition to continuation of baseline funding for the RAHC, currently at $20.6 million. The UT System Board of Regents in December approved an allocation of $10 million per year for 10 years to accelerate the pace of transitioning the RAHC to a medical school. Our Board of Regents’ $20 million investment for the biennium allows us to reduce our RAHC exceptional item request to $20.9 million from the $40.9 million proposed in our LAR. Total funding needed to expand the RAHC campus is $61.5 million for the biennium: $20.6 million in continuation funding, $20 million from our Board and this additional $20.9 million requested.
We request $4.4 million in enhanced funding for the Regional Campus Laredo to serve the ever‐increasing community demand for more educational opportunities including the pediatric dentistry residency program, the Physician Assistant program, and establishing joint degree programs with Texas A&M International University and other Texas universities. This funding will also support the development of a comprehensive research program targeting the major epidemics of obesity and diabetes.
We request $4M for the Sam and Ann Barshop Institute for Longevity and Aging Studies to help us grow the Center for Healthy Aging and to translate to humans our investigators’ successes in prolonging healthy life in animals. Recent medical advances have shown that in research animals the underlying causes of aging can be treated through multiple mechanisms, including therapeutic drug targets, such that the
3
diseases and maladies of aging can be delayed.
Finally, we request support for two relatively small capital construction projects. In anticipation of the 83rd Legislature authorizing Tuition Revenue Bonds, we request:
o Funds for an Enhanced Performance Laboratory of the Barshop Institute on Aging at a cost of $8 million. [$1.4M in debt service]. This building provides research space to support translational research targeting the aging process in conjunction with the on‐going research at our Barshop Institute.
o Funds for a Diabetes Institute of South Texas at a cost of $6 million. [$1.1M in debt service]. This facility will be utilized to conduct nutrition, health and wellness research, education, and outreach critically needed for the Laredo community.
As you know, the State’s enhanced funding of professional health education, biomedical research and patient care are investments in the future of all Texans. I therefore, respectfully request, on behalf of not only university but on behalf of all of our citizens, that you invest an additional $36 million in general revenue to help us better serve San Antonio and the South Texas Border Region.
Thank you for considering my testimony and I’ll be pleased to respond to any questions.
Kenneth L. Kalkwarf, DDS, MS President ad Interim The University of Texas Health Science Center at San Antonio
4
House Appropriations Committee
House Bill 1 Legislative Appropriations Request
Ronald A. DePinho, M.D. President February 15, 2013 The University of Texas MD Anderson Cancer Center Proposed FY 2014 - 2015 Budget House Bill 1 General Revenue (GR) Recommendations* • UT MD Anderson’s total recommended GR for the FY 2014-2015 biennium is $326 million, an increase of $19.3 million or 6.29%, compared to the FY 2012-2013 biennium funding of $298.4 million. • We greatly appreciate the House’s support of UT MD Anderson. Cancer Center Operations Formula • The Cancer Center Operations Formula is increased from $212.5 million in the FY 2012- 2013 biennium to $236.8 million in the proposed FY 2014-2015 biennium, an increase of $24.4 million or 11.5%. Established as Operations strategy within the Instruction and Operations Formula. Appropriates GR support based on our primary mission of patient care. Driven by the number of Total Texas Cancer Patients Served, a measure that is steadily growing between 5-8% per year. Formula’s growth may not exceed the average growth in Instruction and Operations formula funding for the health-related institutions.
*Reflects loss of $8 million for institutional operations from HB 4 (82nd Legislature, 1st Called Session) 2 The University of Texas MD Anderson Exceptional Item Requests: One-time funding FY 2014 - 2015
School of Health Professions $2,440,000 • A non-energized MRI machine would be used in the School of Health Professions to provide training and enhance the quality of education for diagnostic imaging students. • Funds would be used for a mobile computer cart system to support Radiation Oncology software applications. • Start-up funding would be provided for two new degrees: B.S. in Health Disparities, Diversity, and Advocacy, and B.S. in Diagnostic Medical Sonography. On-site Basic Science Research Storage $2,500,000 and Computational Capacity • MD Anderson has experienced and 806% increase in storage for basic and translational research since 2006. • The total storage for research is now three times more than all clinical and administrative storage combined. The request would assist MD Anderson in the expansion of large memory computing to handle the analytics associated with Next Generation Sequencing.
3 The University of Texas MD Anderson Tuition Revenue Bond Request FY 2014 - 2015
Basic Science Research Building II $4,360,000 (debt service)
• Request for $50,000,000 in bonds for the Zayed Building for Personalized Cancer Care. • The project consists of a new 625,000 gross square feet research building constructed on MD Anderson's main campus. • The facility will include two research laboratory wings designed with an exterior public corridor that will maximize the flexibility to meet new and evolving technologies and will be joined with two adjacent office wings by a central collaboration core space in the middle. • The facility will include clinical laboratories, translational and basic science research laboratory space, clinical programs and other supporting space, such as equipment support areas, offices and conferencing facilities to integrate the delivery of basic and clinical research in support of Personalized Cancer Care. • Tuition revenue bond support will be leveraged with other sources of funding including, philanthropy and patient income – 15% TRB, 85% other funds.
4 Summary
• UT MD Anderson is a good investment for the State of Texas and we are very grateful for the Legislature’s confidence and continued support. Proposed GR investment of $163 million each year will yield a significant return for Texas This critical state funding supports sustained excellence:
• Continue to rank #1 in cancer care compared to our peers, 8 of last 10 years • Consistently earn the most grants and grant dollars from the National Cancer Institute of any other academic medical center in the country
• Maintaining integrity of the Cancer Center Operations Formula is critically important to the institution to provide high quality cancer care as demand continues to increase.
5 7 BACKGROUND MATERIALS ONLY The University of Texas MD Anderson Cancer Center
House Appropriations Committee February 15, 2013
8 The University of Texas MD Anderson Cancer Center
The University of Texas System BOARD OF REGENTS
CHANCELLOR F. Cigarroa, MD
The University of Texas MD Anderson Cancer Center
PRESIDENT R. DePinho, MD
EXECUTIVE VICE EXECUTIVE VICE EXECUTIVE VICE PRESIDENT and PRESIDENT and Chief PRESIDENT and Provost ad interim Business Officer Physician-in-Chief T. Buchholz, MD L. Leach T. Burke, MD
9 Mission Statement
To eliminate cancer in Texas, the nation and the world through outstanding programs that integrate patient care, research and prevention, and through education for undergraduate and graduate students, trainees, professionals, employees and the public.
10 Cancer Focus
• Primary catchment area is the state of Texas • 115,892 patients served in FY12 - 30% from Houston metro area (Harris and surrounding counties) - 28% from elsewhere in Texas - 39% from other states - 3% from outside USA • 35,614 newly registered patients • 10,916 patients enrolled in 965 interventional clinical trials (FY12)
11 Growth of Research Expenditures
$700
$600
$500 $285 $305 Grants and contracts $257 $400 $244 Institutional Support $236 $225 Millions Philanthropy and foundations $300 State appropriated general $242 $196 revenue and tobacco settlement $200 $185 $157 $161 $137
$100 $83 $82 $98 $101 $61 $74 $24 $‐ $22 $23 $22 $23 $20 2007 2008 2009 2010 2011 2012
12 Cancer Focus: Top NCI Grantee Institutions FY11
Grantee Institution Total Awarded by Total Awarded NCI (all grants) by NCI (P30s) University of Texas MD Anderson Cancer Center $116,394,027 $10,244,973
Fred Hutchinson Cancer Research Center $89,876,297 $11,676,086 Johns Hopkins University $85,677,838 $7,070,274 Dana-Farber Cancer Institute $84,561,054* $11,239,583 University of Michigan at Ann Arbor $77,494,705 $5,744,947 Sloan-Kettering Institute for Cancer Research $71,313,068 $13,560,549 Vanderbilt University $67,319,503 $6,056,562 University of California SF $64,449,954 $8,334,788 Mayo Clinic $63,254,956 $5,595,596 University of Pennsylvania $58,654,129 $7,965,517
Source: Leo F Buscher Jr, Cancer Center Administrators' Forum, * Total NCI funding of DFCC consortium, $180,619,334 March 5, 2012 13 Cancer Focus: Education and Training
• Undergraduate degrees in 8 Education Profile FY07 FY11 % Change
disciplines Clinical residents, 977 1,141 17% • Graduate School of Biomedical fellows Sciences Research trainees 1,452 1,629 12% • Research and education Observers, visitors, affiliations with 26 sister 715 429 -40% special programs institutions in 19 countries
• 10 T32 and 4 R25 training grant Nursing students 1,727 2,320 34% programs (including rotations) • Physician Scientist and Clinician Student programs 571 1,102 93% Investigator (K12) programs participants
• Institution-wide focus on School of Health mentoring Professions 96 248 158% • Expenditure of $153M in FY 2011 students for instruction, academic support Total trainees 5,538 6,869 24% and public service
14 New Strategic Initiative: Cancer Moon Shots Program
Goal-oriented programs to accelerate declines in cancer mortality Multi-disciplinary groups, numbering dozens to hundreds, developed high- impact flagship projects over months Projects reviewed by 24 internal and external investigators, chaired by AACR President Dr. Frank McCormick Full-scale inaugural programs selected, others ‘in development’
15 House Appropriations Subcommittee on Article III FY2014 – FY2015 Budget Hearings
Kirk A. Calhoun, MD – President February 15, 2013 Presentation Outline
• Our Mission • Culture of Fiscal Responsibility • Collaborations • UTHSCT Solves Problems for Texas • FY14-15 Budget Priorities • Exceptional Item Request • Tuition Revenue Bond Request • Our Commitment
THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT TYLER 2 Why Our Mission Is Important
• Educating our workforce improves our economy and strengthens our communities. • Training new physicians means increased access to medical care and better quality of care in our region. • Scientific discoveries improve our quality of life. • Beyond our regional impact, we’ve seen patients from 146 of 254 Texas counties during the past two years.
THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT TYLER 33 Culture of Fiscal Responsibility
• UTHSCT has overcome significant fiscal challenges and developed a fiscally-responsible culture: − Reduced expenditures to match appropriated state general revenue and patient income funding levels. − 41-percent reduction in full-time equivalent employees. − Selective outsourcing of operational areas. − Collaboration with other state agencies to save money. − Ongoing and systematic reviews of programs to determine their effectiveness and value. • Productivity and efficiency are core values at UTHSCT.
THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT TYLER 44 Collaborations in Health Care, Education, and Research
THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT TYLER 55 UTHSCT Solves Problems for Texas
• UTHSCT believes in solving tough problems through collaborations and evidence-based programs: − Educational programs that respond to industry demand. − Partnerships that reduce the demand on taxpayer resources. − Investments in infrastructure that meet the needs of a growing state. − Collaborations with regional stakeholders to improve healthcare delivery systems in Northeast Texas.
THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT TYLER 66 Graduate Medical Education (GME)
• We train the next generation of primary care physicians: − UTHSCT has successfully trained primary care physicians since 1987. − 80% percent of our family medicine residency graduates remain in Texas, and 57% remain in rural Northeast Texas. • Our new Internal Medicine Residency Program in Longview began in July 2012 and will grow to 54 residents by 2014. • Our Occupational Medicine Residency Program trains doctors for industry, one of only two fully accredited civilian programs in Texas.
THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT TYLER 77 Biotechnology Degree Program
• UTHSCT established the School of Medical Biological Sciences. The first degree to be awarded solely by UTHSCT – an M.S. in Biotechnology.
• There is a high demand for the graduates we produce.
• 236,000 Texans are employed by biotechnology companies, with a total payroll of $31 billion.
THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT TYLER 88 Distance Learning • Through the Northeast Texas Consortium (NETnet), UTHSCT helps reduce unnecessary duplication of expenses and infrastructure at: − 50 rural Northeast Texas counties − 18 higher-education institutions − Five regional healthcare centers
• NETnet serves 60,000 students and delivers 1,200 courses annually.
THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT TYLER 99 9 DSHS – State Mental Hospitals
• UTHSCT is partnering with the Texas Department of State Health Services (DSHS) to improve mental health services. − In collaboration with DSHS, UTHSCT will open a 30-bed unit in March 2013 that will provide mental health services and alleviate overcrowding at state mental facilities. − UTHSCT invested in renovations to ensure a safe and secure environment for patients at a significant cost savings.
THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT TYLER 10 1115 Waiver • UTHSCT is the Anchor for Region 1, which covers: − 28 counties − 1.2 million people − 21,000 square miles • Across the region, UTHSCT is leading efforts to reduce costs in our healthcare delivery system, avoid unnecessary hospitalizations, and transform the way we provide mental health services. The regional health plan includes: − 90 projects − 5 local mental health authorities − 8 public hospitals − 10 private hospitals
THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT TYLER 111111 FY 14-15 Budget Priorities
Priority 1: Address the loss of funding that was in HB 4 (82R) supplemental appropriations.
Priority 2: Expand UTHSCT degree granting programs through our Exceptional Item request.
Priority 3: Increase our capacity to train rural primary care providers through our Tuition Revenue Bond request.
Priority 4: Adequately fund the graduate medical education (GME) formula and related THECB programs that support GME.
THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT TYLER 1212 Exceptional Item Request
$6 million to expand our degree-granting efforts: • UTHSCT has raised almost $1 million in private funds for student scholarships. • Funding will also assist in development of new academic programs in the health professions and community health.
THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT TYLER 1313 Tuition Revenue Bond Request
$5 million in TRB funding to help modernize 60,000 square feet in The Riter Center for Advanced Medicine: • Renovations creating the Primary Care Training Center will move our growing primary care educational programs out of cramped and inefficient facilities to accommodate a multi-disciplinary approach. • Total Project Cost: $6,005,000 • UTHSCT will contribute $1 million in local and philanthropic funds to complete this project. • TRB Request: $5,005,000
THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT TYLER 1414 Our Commitment
Thank you for your continued support of UT Health Science Center Tyler.
Our commitment to the Legislature and the people of Texas: • We will encourage job growth by focusing our educational programs on high demand fields. • We will solve tough problems through collaborations and evidence based programs. • We will manage our resources well, promote faculty and staff productivity, and continue to eliminate waste in our operations. QUESTIONS ?
THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT TYLER 1515
E.J. “Jere” Pederson, Interim President, Texas A&M Health Science Center Interim Vice Chancellor for Health Affairs, TAMU System
Invited Testimony for House Appropriations Committee February 15, 2013
Chairman Otto, Vice Chair Crownover, and Members of the Committee:
Thank you for the opportunity to present to you the efficient and effective model provided to the State by the Texas A&M Health Science Center. During the fiscal challenges we have faced and continue to work through as a state, we have been determined to remain flexible and to become even more productive so that we can continue to respond to the state’s well-documented needs for additional health care professionals.
We are grateful for your past recognition of and support for the important mission of our institution and all the Health-Related Institutions. We appreciate the effort to prevent further erosion of the HRI formula rates in House Bill 1. Funding rates for the Instruction and Operations formula declined from a base rate of $11,129 per student in 2010-11 to $8,874 in 2012-13, which is maintained in the base bill due to funds added to support new students enrolled since last biennium. The Infrastructure Formula rate has declined from $7.96 per square foot in 2010-11 to $6.36 in 2012-13, which is maintained in the base bill. This formula is intended to support the operation of our facilities, and the rate at one time was $11.51 per square foot. In addition, the Research and Graduate Medical Education formulas have experienced declines in recent biennia and need additional support in order to reach adequate levels to maintain the progress and performance of our institution.
For the sake of future reference, I would like to mention the Institutional Operations funding that was provided to the HRIs in HB4 last session. For the A&M HSC, these were provided to support students enrolled in the last biennium. These students are still
1
enrolled, and we need these funds to be continued in order to cover the costs of educating those students. We would like to furnish more information about this item at a later date. We look forward to working with you to secure the necessary base funding and facilities for our current and future students, faculty and staff.
I. Efficiency in Meeting the State’s Needs
We are the state’s youngest, yet most cost-efficient Health-Related Institution, with a per student cost of $90,814 in 2011, compared to the statewide average of $266,196. We achieve this through distance education, centralized administrative support, and using an innovative community-based educational model across our campuses in Bryan/College Station, Corpus Christi, Dallas, Houston, Kingsville, McAllen, Round Rock, and Temple. Responding to the state’s needs, we have more than doubled our enrollment in the last decade, reaching a total of 2,100 students in 2012. At the same time, we have kept tuition increases at a minimum, with our College of Medicine being named the most affordable program nationwide by U.S. News and World Report in 2012.
• We have been named a national top 10 producer of family physicians by the American Academy of Family Physicians eight times, and on average, 50 percent of our students go into primary care fields. The other 50 percent enter non-primary care specialties, providing the balance needed in the workforce.
• We have increased our first-year Graduate Medical Education positions by 41 percent over the last decade, but growth in GME programs in general has slowed due to reductions in state funding and proposals to cut federal Medicare GME support. We are working with any and all qualified partners to grow GME positions and to create new programs where possible, including in psychiatry and family medicine through the 1115 Medicaid waiver. However, new, sustainable funding sources must be identified.
• We are enrolling more underrepresented minorities than ever before, from 102 (11.6%) in 1999 to 474 (22.3%) in 2011. In addition, we have the most diverse dental school student body in the nation at A&M Baylor College of Dentistry. More than half of the graduates of the Irma Lerma Rangel College of Pharmacy remain in South Texas to practice, and the school ranks first in Hispanic enrollment among the nation’s colleges and schools of pharmacy.
II. Excellence in Our Students and Faculty
We are training the kinds of health professionals Texas needs while providing quality degree programs in a growing number of disciplines and locations and at a fraction of the cost of more traditional programs. Despite the focus on cost-effectiveness to promote optimal use of state tax dollars, TAMHSC students perform at a high level compared to their peers regionally and nationally:
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• College of Medicine students led the state with a 99 percent passage rate on the national medical licensing exam in FY2012.
• College of Nursing students ranked first in the nation with 100 percent of graduates passing the national licensing exam between fall 2011 and spring 2012.
• The School of Rural Public Health is among the top three most diverse public health schools nationwide, and consistently ranks in the top 25 schools in the nation according to U.S. News and World Report.
• The faculty researchers at our Institute of Bioscience and Technology in Houston rank in the top 40 institutions nationwide in terms of per capita research productivity, and to date three new companies have been incorporated from their research.
III. Flexibility in Responding to Challenges and Opportunities
During the past five years of funding challenges, TAMHSC has strived to be flexible in order to continue to meet the needs of the state:
• We have provided our Texas communities new academic programs, such as the College of Nursing, as well as critical outreach through the Rural and Community Health Institute, which provides services to hospitals and physicians in 191 counties. We have expanded our program offerings in McAllen and have opened new campuses in Round Rock and Bryan, which is the agency’s state headquarters.
• Most recently, in December 2011, a new College of Medicine Clinical Training Program was launched in Dallas, to educate third- and fourth-year medical students in partnership with Baylor Health System, which recently merged with Scott & White, our longtime clinical partner in Temple.
• Under the heading of opportunities, we have risen to serve as anchor for two Regional Health Partnerships under the 1115 Medicaid Transformation Waiver, including Region 17, the first region to be formed. It comprises Brazos, Montgomery, Burleson, Grimes, Leon, Madison, Robertson, Walker and Washington counties. We also anchor Region 8, based in Williamson County, and composed of Bell, Blanco, Burnet, Lampasas, Llano, Milam, Mills, and San Saba counties. Both regions are working to improve the access and quality of health care from the local level up, with specific focuses on primary care, behavioral health, and care coordination for those with multiple needs.
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IV. PRIORITY REQUESTS:
Base Funding – Our highest priority is funding the basic, on-going operations of our Health Science Center, through the formulas. We request that the Legislature continue to invest any new funds into the formulas to fund the costs of providing education and support for the additional students enrolled since the last base period, and to fund the facilities costs of our institutions and agencies. If adequately funded, the formulas can provide equitable support for growing and fully established institutions.
Graduate Medical Education – The State should increase the number of Graduate Medical Education (GME) positions available to Texas medical school graduates by creating a distinct funding mechanism to support expansion of accredited residency programs and creation of new programs. Increasing the current GME formula alone will not meet the need because federal Medicare funding, which provides the majority of support for GME, is capped. There should be a focus in particular on insuring that new first-year residency positions are created. Funding for new GME should not come at the expense of base funding for Health-Related Institutions.
V. TUITION REVENUE BOND REQUESTS:
Additional facilities are needed to house faculty and provide education and research space, particularly in Dallas, where the A&M Baylor College of Dentistry is based, along with students from the College of Medicine.
1. Dallas Education and Research Building ($80,000,000 request; annual debt service of $6,974,765) The project would support growth for the A&M Baylor College of Dentistry, which is unable to increase class size due to space constraints. The building would house classrooms, basic and translational laboratories, including a vivarium, and additional faculty. The facility will support growth in dentistry, medicine, and biomedical sciences to meet the goals of Closing the Gaps by increasing access to health professions education and continuing to drive the Texas economy through externally funded research and commercialization.
2. Round Rock Education and Research Building ($50,000,000 request; annual debt service of $4,359,228) This project supports expansion of the Round Rock campus to a full, four-year medical education program and supports the growth and addition of other health professions programs at this campus. A new building is needed to house laboratories, classrooms, and faculty.
3. Temple Research Building ($45,000,000 request; annual debt service of $3,923,306) A new facility would house classrooms, basic and translational research laboratories, and a vivarium to support growth in the biomedical sciences.
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VI. EXCEPTIONAL ITEM REQUESTS:
1. Graduate Medical Education Jump Start -- ($4,000,000 for the biennium): Texas faces an urgent public policy crisis due to a shortage of medical residency (Graduate Medical Education) positions to accommodate the increasing number of medical school graduates being produced to address the physician shortage. Our College of Medicine has an unmatched track record for rapidly and efficiently responding to the state’s needs for additional medical school graduates. Funding would allow the College of Medicine to work with hospital and community clinic partners to provide a mix of GME positions in primary care and other urgently-needed specialties. If additional new residency positions are created, Texas will reap the benefits of its investment in medical education by retaining more of its own physicians and being poised to recruit outstanding medical school graduates from other states across the nation to help augment our physician workforce.
2. Producing a More Diverse Health Care Workforce -- ($3,500,000 for the biennium): Texas must produce diverse health workforce in order to achieve better access to care in underserved communities. New funding is requested to support Bridge to Dentistry, which recruits and retains students from underserved communities, and the Undergraduate Medical Academy, a proven program supporting under-represented minority college students in their pursuit of admission into medical school. These programs meet the goal of a more diverse health professions workforce.
3. Programs in Public Health for South Texas -- ($3,500,000 for the biennium): With modest start-up funding, the School of Rural Public Health (SPRH) can develop undergraduate public health programs in South Texas to help address the extreme shortage of undergraduate training opportunities in public health and increase the number of public health professionals with formal training (currently only 15 percent of the workforce).
4. Bioanalytical Center for South Texas – ($5,000,000 for the biennium): The creation of a Bioanalytical Center would improve public quality of life by lessening the detrimental health and socioeconomic impacts of counterfeit drugs reaching today’s market place while providing enhanced growth of pharmaceutical, biotechnology, and related industries in the South Texas region.
Conclusion
We will look to the State to provide the funding needed to continue to perform efficiently and effectively in meeting the needs of Texans going forward. The administration, faculty, and staff of the Health Science Center greatly appreciate the support of the Legislature, and we pledge to continue this momentum as we work to strengthen the health of Texans.
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House Committee on Appropriations Tedd Mitchell, M.D. President February 15th , 2013 2 Texas Tech University Health Sciences Center Campuses
Abilene– Graduate School of Biomedical Sciences, Nursing, Pharmacy
Amarillo– Allied Health Sciences, Graduate School of Biomedical Sciences, Medicine, Pharmacy
Dallas– Pharmacy (2 Locations)
El Paso– Medicine, Nursing, Graduate School of Biomedical Sciences
Lubbock– Allied Health Sciences, Graduate School of Biomedical Sciences, Medicine, Nursing, Pharmacy
Midland– Allied Health Sciences, Medicine
Odessa– Allied Health Sciences, Medicine, Nursing
3 Unique Challenges in West Texas
108 counties representing 50% of land mass and 11% of the state’s population – Geographic vastness [matter of access to care] – Demographic variation amongst 108 counties [aging population in panhandle in contrast with young Hispanic population along the border] – Shortage of healthcare providers – Limited clinical sites for student training
4 Unique Challenges in West Texas
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Formula Appropriations
2012-13 FAC HB 1 I & O Rate/student FTE $8,874 $9,710 $8,874 Infrastructure Rate/ square foot $6.55 $8.10 $6.36 Research % of research expenditures 1.10% 1.68% 1.10% GME Rate/resident $4,682 $5,292 $4,682 • Growth funded in I & O, Research and GME
• Growth funding not provided for Infrastructure
• Institutional Operations funding of $8 M Eliminated
8 Small Class Supplement
• Supplemental I & O formula funding - programs with less than 200 students at a campus
• Critical for program startup and small programs
• Funding needed for Schools of Nursing in Abilene and El Paso
9 Staff Group Insurance Premiums
• A 1% payroll fee was implemented in 2012 - 2013 to fund a portion of the premiums.
• The base bill is funded at 85.8% of premium costs.
• This funding level is insufficient to cover the premiums net of the 1% payroll fee.
• Other appropriated funds and student fees are redirected to cover both the shortfall and the payroll fee.
10 Tuition Revenue Bonds
Lubbock Education, Research and Technology Building $45,000,000 (TRBs: $40,500,000; other funds: $4,500,000)
El Paso Medical Science Building II $99,000,000 (TRBs: $89,100,000; other funds: $9,900,000)
El Paso Clinical Science Building $30,000,000 (TRBs: $27,000,000; other funds: $3,000,000)
Permian Basin Academic Facility $18,900,000 (TRBs: $17,010,000; other funds: $1,890,000)
Amarillo Panhandle Clinical/Hospital Simulation Center $16,500,000 (TRBs: $14,850,000; other funds: $1,650,000)
11 Texas Tech University Health Sciences Center at El Paso - House Bill 257
• Pursuant of Texas Education Code - legislative support required in authorizing the establishment of freestanding health sciences center in El Paso – There is NO request for NEW MONEY; funds currently requested in the LAR will be utilized for administration – El Paso metro population of 2 million represents one of the largest populations on an international border – Five year strategic plan calls for growth to over 800 students in El Paso – Freestanding status facilitates development of home grown health care workforce
12 13
Report to the Legislature
2013
History of Baylor College of Medicine
. Founded in 1900 in Dallas . Second oldest medical school in Texas . Moved to Houston in 1943 . In 1947, moved to present site in Cullen Building – first building constructed in the Texas Medical Center . In 1948, Dr. Michael E. DeBakey appointed chair of Department of Surgery . College of Medicine separated from Baylor University in 1969 . Also in 1969, Legislature passed law authorizing State funds for Baylor College of Medicine 2
Baylor College of Medicine Overview
Largest Employers in the Greater Houston Metropolitan Area
1. Memorial Hermann Healthcare System 16. Landry’s Restaurants 2. UT MD Anderson Cancer Center 17. Baker Hughes 3. H-E-B 18. JPMorgan Chase 4. United Airlines 19. Harris County Hospital District 5. McDonald’s 20. St. Luke’s Episcopal Hospital System 6. Kroger 21. Chevron 7. Exxon Mobil 22. BAYLOR COLLEGE OF MEDICINE 8. Methodist Hospital System 23. Grocers Supply 9. Schlumberger Houston 24. Halliburton 10. UT Medical Branch Galveston 25. Dow Chemical 11. HCA Gulf Coast Division 26. General Electric 12. Shell Oil 27. UT Health Science Center Houston 13. National Oilwell Varco 28. Subway 14. Texas Children’s Hospital 29. Target 15. BP 30. AT&T
Source: Houston Chronicle 6/24/12 3 Baylor College of Medicine Overview
Full-time enrollment: 1,525 - Medical students 751 - Graduate students 600 - Allied health students 174 Resident physicians 939 Postdoctoral fellows 1,022 - Clinical 424 - Research 598 Faculty (full-time) 1,980 Faculty (voluntary) 1,547 Staff (full-time) 3,631
4 Baylor College of Medicine Overview
. In 2012: 5,521 applicants for 185 first-year medical school positions
. Average GPA of 2012 enrolled students: 3.83 out of 4.00
. Hispanic, African-American and American Indian students: 19.9% of 2012 first-year medical class
. In 2011, 98% of Baylor medical students passed Step 1 of the U.S. Medical Licensing Exam on their first try.
5 New Academic Programs
Expansion of School of Allied Health . Master of Science in Orthotics and Prosthetics . Address growing healthcare needs in this area . Classes begin in 2013
Creation of a 4th School at Baylor in 2011 . National School of Tropical Medicine . Education program that is unique in the U.S. . Address global and local health issues . First diploma program began in July
6 Examples of Dual and Joint Degree Programs
Dual Degree Programs . MD/JD with the University of Houston . MD/MBA with Rice University . MD/MPH with UT Health Science Center – Houston
Joint BS/MD Programs . Baylor University . UT Pan American . University of Houston . Rice University . Joint Admission Medical Program (JAMP)
7 BCM South Texas
Premedical Honors College (est. 1994) Eight-year BS/MD partnership: The University of Texas-Pan American/Baylor College of Medicine To date, 288 students have participated. 112 MD graduates in total: 86 MDs from BCM (43 MDs from BCM’s Texas High School Network) 37 PHC students enrolled at BCM 46 PHC students enrolled at UTPA Served as model for State-funded Joint Admission Medical Program (JAMP)
Texas Higher Education “Star Award” (2002)
8 BCM High School Network
DeBakey High School for Health Professions (Houston, 1972)
Health Science Academy at Foy H. Moody High School (Corpus Christi, 1990)
Health Science Magnet at J.B. Alexander High School (Laredo, 1994)
South Texas Academy for Medical Professions (San Benito, 2003)
South Texas Business, Education and Technology Academy (Edinburg, 1993)
South Texas High School for Health Professions (Mercedes, 1983)
South Texas – New Campus, Rancho Viejo (under construction, 2013 – 2015)
South Texas Preparatory Academy (Edinburg, 2008)
The Science Academy of South Texas (Mercedes, 1989) 9 Clinical and Academic Affiliations
University of Houston Baylor University
10 Baylor College of Medicine Harris County Hospital District
E.A. “Squatty” Lyons Health Center
Acres Home Aldine Health Center Health Center Settegast Health Center
Northwest Center Lyndon B. Johnson Hospital Thomas Street Health Center Casa de Amigos Health Center Baytown Health Center
People’s Community Health Center Quentin Mease Hospital Ben Taub Hospital
Gulfgate Health Center Strawberry Health Center
Baylor College of Medicine Staff Martin Luther King Clinic UTHSC Staff 11 Research
Total Research Expenditures Texas Colleges and Universities - FY 2010 Texas A&M University $689.6 million UT MD Anderson 599.5 million UT Austin 589.5 million BAYLOR COLLEGE OF MEDICINE 447.9 million UT Southwestern 419.2 million UTHSC Houston 240.8 million UTHSC San Antonio 207.1 million UTMB Galveston 188.4 million Texas Tech University 133.4 million University of Houston 119.8 million Rice University 97.9 million Texas A&M HSC 82.8 million UT Dallas 82.0 million UT Arlington 71.4 million UT El Paso 68.9 million UT San Antonio 56.3 million Texas Tech HSC 51.3 million University of North Texas HSC 38.9 million 0 50 100 150 200 250 300 350 400 450 500 550 600 650 (millions of dollars) Source: National Science Foundation, June 2012 12 National Ranking of Texas M.D. Schools FY 2012 NIH Research Funding
FY 2012 Institution $ in Millions Ranking Baylor College of Medicine 207.3 17th UT Southwestern 164.8 25th UTMB Galveston 72.2 51st UT San Antonio HSC 66.2 55th UT Houston 61.5 59th Texas A&M HSC 14.7 99th Texas Tech HSC 10.1 106th
Source: Blue Ridge Institute for Medical Research, November 2012
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2012 NIH Ranking in Research Funding
Baylor College of Medicine – 17th
BCM Departmental Ranking 1st Anatomy/Cell Biology 1st Genetics 3rd Pediatrics 8th Neuroscience 11th Urology 12th Physical Medicine 14th Physiology 19th Otolaryngology 19th Biochemistry
Source: Blue Ridge Institute for Medical Research, Nov. 2012 14 Outstanding Research Faculty Past to Present
Dr. Roger Guillemin shared the Nobel Prize for Medicine or Physiology in 1977 for research done at BCM that laid the foundation for brain hormone research.
The late Dr. Michael E. DeBakey and Dr. Bert O’Malley, Chair of Molecular and Cellular Biology at BCM, are both recipients of the National Medal of Science.
7 Members of the National Academy of Sciences
13 Current Members of the Institute of Medicine
3 Howard Hughes Medical Investigators 15 U.S. News & World Report 2012 Rankings - Texas
Medical Schools - Research UT Southwestern 20th Baylor College of Medicine 21st UTHSC Houston 55th UTHSC San Antonio 67th Texas A&M HSC 83rd
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Section 1
Public Community/Junior Colleges Summary of Recommendations - House
Page: III-186 Daniel Estrada, LBB Analyst RECOMMENDED FUNDING BY METHOD OF FINANCING 2012-13 2014-15 Biennial % Method of Financing Base Recommended Change Change General Revenue Funds $1,749,380,723 $1,645,081,171 ($104,299,552) (6.0%) GR Dedicated Funds $0 $0 $0 0.0% Total GR-Related Funds $1,749,380,723 $1,645,081,171 ($104,299,552) (6.0%)
Federal Funds $0 $0 $0 0.0% Other $0 $0 $0 0.0% General Revenue Funds All Funds $1,749,380,723 $1,645,081,171 ($104,299,552) (6.0%) 100.0%
The bill pattern for the Public Community/Junior Colleges (2014-15 Recommended) represents an estimated 21% of the community college's estimated total available funds for the 2014-15 biennium.
Agency 704 2/7/2013 Section 1 Public Community/Junior Colleges 2014-2015 BIENNIUM TOTAL= $1,645.1 MILLION IN MILLIONS
ALL FUNDS GENERAL REVENUE AND FULL-TIME-EQUIVALENT POSITIONS GENERAL REVENUE-DEDICATED FUNDS APPROPRIATED $929.6 APPROPRIATED $929.6
APPROPRIATED $874.7 APPROPRIATED $874.7 APPROPRIATED $874.7 APPROPRIATED $874.7
2013 2014 REQUESTED 2015 $828.1 REQUESTED $828.1 REQUESTED $828.1 REQUESTED $828.1
APPROPRIATED APPROPRIATED APPROPRIATED REQUESTED REQUESTED 0.0 0.0 0.0 0.0 0.0 $853.5 $874.7 $874.7 $822.5 $822.5 $853.5 $874.7 $874.7 $822.5 $822.5 0.0 0.0 0.0 0.0 0.0 EXPENDED ESTIMATED BUDGETED RECOMMENDED RECOMMENDED EXPENDED ESTIMATED BUDGETED RECOMMENDED RECOMMENDED EXPENDED ESTIMATED BUDGETED RECOMMENDED RECOMMENDED
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
Agency 704 2/7/2013 Section 2 Public Community/Junior Colleges Summary of Recommendations - House, By Method of Finance -- General Revenue Fund 01
2012-13 2014-15 Biennial % Comments Base Recommended Change Change
Formula Recommendations $ 1,709,700,034 $ 1,627,264,509 $ (82,435,525) (4.8%) Recommendations include maintaining the 2012-13 average formula rate per contact hour. See Selected Fiscal and Policy Issues.
Texas Southmost College $22,477,955 $ 15,987,530 (6,490,425) (28.9%) Recommendations include establishing a Trusteed Account at the Higher Education Coordinating Board for Texas Southmost College formula. See Selected Fiscal and Policy Issues.
Small Institution Supplement Recommendations 4,500,000 $ 4,500,000 - 0.0% Recommendations include maintaining the Small Institution Supplement methodology. Nine Public Community/Junior Colleges meet the criteria to receive an additional $500,000 each for the biennium.
Bachelor of Applied Technology Recommendations 929,958 $ 1,382,406 452,448 48.7% Recommendations include funding the Bachelor of Applied Technology programs at three Public Community/Junior Colleges at the same Instruction & Operations Support General Revenue Rate as General Academic Institutions.
Special Item Recommendations 11,772,776 $ 11,934,256 161,480 1.4% See below for detail on Special Items.
Grand Total, All Contributions: $ 1,749,380,723 $ 1,661,068,701 $ (88,312,022) -5.0%
2012-13 2014-15 Biennial % Special Item Detail Base Recommended Change Change
Virtual College of Texas (Austin Community College) $ 712,500 $ 712,500 $ - 0.0% Maintain at 2012-13 base level. Star of the Republic Museum (Blinn College) $ 507,654 $ 507,654 $ - 0.0% Maintain at 2012-13 base level. Small Business Development Center (Dallas CCD) $ 3,303,808 $ 3,303,808 $ - 0.0% Maintain at 2012-13 base level. STARLINK (Dallas CCD) $ 400,188 $ 561,668 $ 161,480 40.4% Increase funding over the 2012-13 base. Heritage Museum (Hill College) $ 513,000 $ 513,000 $ - 0.0% Maintain at 2012-13 base level. Southwest Collegiate Institute for the Deaf (Howard College) $ 5,302,586 $ 5,302,586 $ - 0.0% Maintain at 2012-13 base level. Import/Export Training Center (Laredo College) $ 322,390 $ 322,390 $ - 0.0% Maintain at 2012-13 base level. American Airpower Heritage Museum (Midland College) $ 710,650 $ 710,650 $ - 0.0% Maintain at 2012-13 base level.
Total, All Special Items: $ 11,772,776 $ 11,934,256 $ 161,480 1.4%
Sec2_Agency 704 A.xlsx 2/7/2013 Section 3
Public Community/Junior Colleges Selected Fiscal and Policy Issues
1. Maintain 2012-13 Formula Methodology. The recommendations include funding the Public Community/Junior Colleges (Community Colleges) under the same funding methodology the used for the 2012-13 biennium. The recommendations include funding 100 percent of the formula through the allocation of contact hours, excluding funding for the small institution supplement.
2. Contact Hour Decrease and Rate. The recommendations include funding the Community Colleges at the 2012-13 average base rate per contact hour of approximately $5.54. The total number of contact hours decreased by 5.1 percent for the 2014-15 base period from 2012-13 for the Community College districts included in the formula funding recommendations, which results in an $88,925,950 decrease in General Revenue.
3. Texas Southmost College. The recommendations include $15,987,530 in General Revenue for Texas Southmost College based on the number of contact hours it generated in the base period. The recommendations also trustee its formula funding at the Higher Education Coordinating Board and then reallocate its funding based on updated contact hour data in the Fall of 2013. See Texas Southmost College Selected Fiscal and Policy Issue section.
4. Bachelor of Applied Technology. The recommendations include funding the Bachelor of Applied Technology (BAT) programs offered at Brazosport College, Midland College, and South Texas College at the same General Academic Institutions’ Instruction & Operations Support General Revenue rate which is $38 per fiscal year for the 2014-15 biennium. With a 19.4 percent increase in semester credits hours for the BAT program, the funding increased by $452,448 in General Revenue to $1,382,406 in 2014-15.
5. Small Institution Supplement. The recommendations include funding the Small Institution Supplement (SIS) using the same methodology used for 2012-13. Recommendations include $500,000 per eligible district for the 2014-15 biennium. There are a total of nine districts that meet the criteria to receive the SIS. Wharton County Junior College is no longer eligible and Alvin Community College is now eligible to receive the supplement for the 2014-15 biennium.
6. Report on System Administration. Information purposes only and not included in the recommendations. Rider 53, System Administration for Community Colleges, in the Higher Education Coordinating Board’s (Board) bill pattern directed the Board to work with a consultant to develop a blueprint that establishes a state system administration for public community colleges. The National Center for Higher Education Management Systems (NCHEMS) was selected to assist the Board with this review. NCHEMS completed the report in June 2012 with the following recommendations:
1. Organize the functions of a “state system of administration for community colleges” within the framework of the Board; and, 2. Establish an interim independent Texas Community College and Workforce Policy Center (“Center”). The Center would be an interim independent agency with a defined lifespan until the functions of the Board are aligned in a manner that demonstrates a clear, consistent and deliberate understanding and commitment to the community college mission.
7. Outcomes Based Formula. Funding for the Higher Educating Coordinating Board’s Outcomes based formula is not incorporated.
Sec 3a Agency 704.docx 2/7/2013 Section 3
8. Formula Funding for University of Texas at Brownsville (UTB) and Texas Southmost College (TSC). The base period used for the Instruction and Operations (I&O) Formula for UTB and for the Instruction and Administration (I&A) Formula for TSC consists of semester credit hours (SCHs) and contact hours (CHs), respectively, for Summer 2012, Fall 2012, and Spring 2013. During the base period, the allocation for lower level undergraduate courses between the two institutions will be distributed based on a virtual enrollment. Both UTB and TSC agree that this allocation of SCHs and CHs might not accurately reflect what the actual enrollment of students will be when institutions are separate. To ensure an accurate allocation of funding for lower level undergraduate hours in fiscal years 2014-15, the LBB proposes to trustee funding for the lower level undergraduate hours at the Higher Education Coordinating Board (THECB) to then be reallocated to the two institutions after data is updated in fall of 2013 via the following mechanisms:
1. Funding amounts for lower level undergraduate SCHs and CHs will be calculated using final I&O and I&A rates. Recommendations provide $16 million in General Revenue for TSC’s contact hours within Strategy F.1.5 at THECB. Within each institution’s bill patterns: a. UTB will continue to receive funding for SCHs relating to upper level undergraduate, master’s, doctoral, and special programs, as well as funding provided by the Legislature for Infrastructure, Special Items, and Research. 2. The rider in THECB’s bill pattern makes the trusteed funding for the lower level undergraduate SCHs and CHs contingent in 2014-15 upon the following factors: a. UTB and TSC providing information in Fall 2013 on actual student distribution between the separate institutions and the LBB re-calculating the distribution of funding between the two institutions with updated base period data. b. LBB staff requesting approval regarding the new distribution of these funds. The request is considered approved if not disapproved within fifteen days after the date that staff provides the recommendation. c. After approval, the LBB directing THECB to release the funding to the institutions according to the new allocation. 3. The rider also maintains that if the new funding allocation is less than amounts appropriated in this strategy, the remainder will lapse to the credit of the General Revenue Fund. If the new funding allocation is more than funds appropriated in this strategy, both institutions’ amounts will be prorated so that it may not exceed available funding.
Sec 3a Agency 704.docx 2/7/2013 Section 3
The University of Texas at Brownsville (UTB) and Texas Southmost College (TSC) Selected Policy Overview
Background: Since June 1991, Texas Southmost College (TSC) and The University of Texas at Brownsville (UTB) have partnered as one institution known as UTB-TSC. The partnership dedicated most of TSC’s tax revenues and facilities to UTB-TSC and required UTB to provide academic and support services, including management of most faculty and staff. During 2010-2011, the two institutions agreed to end the partnership and the 82nd Legislature passed SB 1909, which directed both TSC and UTB to separate the partnership by August 31, 2015 unless required for accreditation. The current status of the separation is: The institutions have established a virtual enrollment beginning in summer of 2012. Virtual enrollment means that students self identify which institution they would like to attend. The institutions are targeting complete operational separation by fall of fiscal year 2014. Students will be enrolled at a specific institution based on the two separate schools offering different degree programs, enrollment standards and tuition rates, and having separate enrollment processes. Each institution must achieve separate accreditation by fall of 2015.
Issue #1: Formula Funding. The base period used for the Instruction and Operations (I&O) Formula for UTB and for the Instruction and Administration (I&A) Formula for TSC consists of semester credit hours (SCHs) and contact hours (CHs), respectively, for Summer 2012, Fall 2012, and Spring 2013. During the base period, the allocation for lower level undergraduate courses between the two institutions will be distributed based on the virtual enrollment. Both UTB and TSC agree that this allocation of SCHs and CHs might not accurately reflect what the actual enrollment of these students will be when institutions are separate. LBB Proposal: To ensure an accurate allocation of funding for lower level undergraduate hours in fiscal years 2014-15, the LBB proposes to trustee funding for the lower level undergraduate hours at the Coordinating Board to then be re-allocated to the two institutions after data is updated in fall of 2013.
Issue #2. Higher Education Group Insurance (HEGI) Funding. HEGI funding is allocated to institutions based on enrollment in the group insurance plan as of December 1, 2012. Currently, almost all of the employees at UTB-TSC work for UTB and are contracted to TSC as needed. UTB is implementing a reduction in force for fiscal year 2013 and it is possible that TSC will increase their workforce. In the past, HEGI has funded these contract employees at the JUCO rates, but provided the contributions to the University of Texas (UT) System on these employees’ behalf for their enrollment in UT System’s group insurance plan. TSC belongs to the Employees Retirement System (ERS) Group Benefits Program (GBP) and any new employees will be enrolled at ERS. LBB Proposal: To provide HEGI appropriations based on actual workforce levels in fiscal years 2014-15, LBB proposes to withhold HEGI contributions for the two institutions to UT System and ERS until institutions submit new enrollment levels as of December 1, 2013, when a re-allocation between the two will be calculated.
Informational: Benefits Issues for Employees Subject to a Reduction in Force. Employees that are part of UTB’s reduction in force that are then rehired by TSC may face the below issues with their benefits. These issues can be remedied in statute for the affected employees. Retirement: Individuals enrolled in the Teachers Retirement System or Optional Retirement Program that remove their retirement contributions will be subject to a ninety-day delay if they are rehired by TSC. Insurance: Individuals who do not utilize COBRA or are not within the UT system group insurance plan at the time of rehire by TSC will be subject to a ninety-day delay in insurance coverage at ERS. Retiree Health Insurance: Employees are normally required to be enrolled in the same insurance plan for ten years to be eligible for employer contributions towards insurance premiums upon retirement. Some employees may be affected if they meet requirements for retirement, but do not have the full ten years of service at either UT System or under an ERS institution. However, affected employees with a combined ten years of service would be eligible for TRS-Care.
2/7/2013 Section 3
Community College District Financial Condition Selected Policy Overview
Financial Condition. Rider 14 in the Public Community/Junior Colleges bill pattern in the 2012-13 General Appropriations Act, Eighty-second Legislature, directs the Higher Education Coordinating Board (Board) to submit an annual report about the financial condition of the state’s community colleges. This rider implements a recommendation in the 2011 Government Effectiveness and Efficiency Report, Strengthen Financial Oversight of Community Colleges.
The analysis provided by the Board in May 2012 is a broad financial evaluation of the state’s public community college districts based on one year of financial data. Other key performance indicators such as enrollment, audit findings, and accreditation status were taken into account to gain a more robust and complete understanding of institutional strength.
Ratios referenced in the Board’s report are commonly used by external entities to measure the health of higher education institutions. A composite financial index (CFI) was calculated by the Board to provide one metric to more efficiently analyze the financial health of all the districts. Other ratios used in the Board analysis include an equity ratio, debt burden ratio, leverage ratio, as well as enrollment figures and other non-quantitative factors. Based on the data analyzed, institutions were designated as satisfactory, in need of monitoring, or unsatisfactory. Using industry practice and historical data, benchmarks for financial health were established.
Based on fiscal year 2011 Annual Financial Report data, the Board’s analysis found that twelve of the 50 districts did not meet thresholds for three or more of the Board’s 12 financial indicators. Those districts had questionable fluctuations in their long-term liabilities, debt burden, enrollment, audit findings, and accreditation status. Fifteen districts did not meet the threshold for two or fewer indicators. The remaining twenty-three districts met the threshold for all indicators. Those districts were considered robustly capitalized with positive net asset balances and strong internal controls.
2/7/2013 Section 3a 2012-13 Base Summary
2012-13 General Revenue Base Public Community/Junior College Formula Small Inst. Supp. Special Items B.A.T. Total 1 Alamo Community College $ 129,240,643 $ - $ - $ - $ 129,240,643 2 Alvin Community College $ 14,318,460 $ - $ - $ - $ 14,318,460 3 Amarillo College $ 30,418,247 $ - $ - $ - $ 30,418,247 4 Angelina College $ 15,048,551 $ - $ - $ - $ 15,048,551 5 Austin Community College $ 90,715,064 $ - $ 712,500 $ - $ 91,427,564 6 Blinn College $ 42,028,063 $ - $ 507,654 $ - $ 42,535,717 7 Brazosport College $ 9,631,108 $ - $ - $ 125,083 $ 9,756,191 8 Central Texas College $ 39,342,630 $ - $ - $ - $ 39,342,630 9 Cisco Junior College $ 10,757,962 $ - $ - $ - $ 10,757,962 10 Clarendon College $ 4,399,324 $ 500,000 $ - $ - $ 4,899,324 11 Coastal Bend College $ 12,332,959 $ 500,000 $ - $ - $ 12,832,959 12 College of the Mainland $ 11,852,634 $ - $ - $ - $ 11,852,634 13 Collin County Community College $ 61,297,934 $ - $ - $ - $ 61,297,934 14 Dallas County College $ 178,760,764 $ - $ 3,703,996 $ - $ 182,464,760 15 Del Mar College $ 32,642,135 $ - $ - $ - $ 32,642,135 16 El Paso Community College $ 63,617,200 $ - $ - $ - $ 63,617,200 17 Frank Phillips College $ 3,578,024 $ 500,000 $ - $ - $ 4,078,024 18 Galveston College $ 6,507,766 $ - $ - $ - $ 6,507,766 19 Grayson County College $ 15,074,682 $ - $ - $ - $ 15,074,682 20 Hill College $ 13,213,076 $ - $ 513,000 $ - $ 13,726,076 21 Houston College $ 140,246,045 $ - $ - $ - $ 140,246,045 22 Howard College $ 14,720,356 $ 500,000 $ 5,302,586 $ - $ 20,522,942 23 Kilgore College $ 21,955,033 $ - $ - $ - $ 21,955,033 24 Laredo Community College $ 21,585,868 $ - $ 322,390 $ - $ 21,908,258 25 Lee College $ 18,018,480 $ - $ - $ - $ 18,018,480 26 Lone Star College $ 129,758,007 $ - $ - $ - $ 129,758,007 27 McLennan College $ 27,566,939 $ - $ - $ - $ 27,566,939 28 Midland College $ 16,638,077 $ - $ 710,650 $ 94,344 $ 17,443,071 29 Navarro College $ 31,501,650 $ - $ - $ - $ 31,501,650 30 North Central Texas College $ 19,671,661 $ - $ - $ - $ 19,671,661 31 Northeast Texas Community College $ 8,772,097 $ - $ - $ - $ 8,772,097 32 Odessa College $ 13,751,587 $ - $ - $ - $ 13,751,587 33 Panola College $ 7,104,375 $ - $ - $ - $ 7,104,375 34 Paris Junior College $ 17,818,694 $ - $ - $ - $ 17,818,694 35 Ranger Junior College $ 4,456,975 $ 500,000 $ - $ - $ 4,956,975 36 San Jacinto College $ 73,037,114 $ - $ - $ - $ 73,037,114 37 South Plains College $ 27,026,596 $ - $ - $ - $ 27,026,596 38 South Texas Community College $ 65,337,620 $ - $ - $ 710,531 $ 66,048,151 39 Southwest Texas College $ 13,727,030 $ - $ - $ - $ 13,727,030 40 Tarrant County $ 104,951,385 $ - $ - $ - $ 104,951,385 41 Temple Junior College $ 15,125,329 $ 500,000 $ - $ - $ 15,625,329 42 Texarkana College $ 14,926,197 $ - $ - $ - $ 14,926,197 43 Texas Southmost College $ 22,477,955 $ - $ - $ - $ 22,477,955 44 Trinity Valley College $ 21,972,396 $ - $ - $ - $ 21,972,396 45 Tyler Junior College $ 33,953,034 $ - $ - $ - $ 33,953,034 46 Vernon College $ 10,877,375 $ 500,000 $ - $ - $ 11,377,375 47 Victoria College $ 11,848,156 $ - $ - $ - $ 11,848,156 48 Weatherford College $ 15,330,190 $ - $ - $ - $ 15,330,190 49 Western Texas College $ 6,645,083 $ 500,000 $ - $ - $ 7,145,083 50 Wharton College $ 16,599,458 $ 500,000 $ - $ - $ 17,099,458
Total $ 1,732,177,989 $ 4,500,000 $ 11,772,776 $ 929,958 $ 1,749,380,723
LBB Document 2/7/2013 Section 3b 2014-15 Recommendations Summary Compared to 2012-13
2012-13 Base 2014-15 General Revenue Recommendations Biennial Change Public Community/Junior College Total 2012-13 Formula Small Inst. Supp. Special Items B.A.T. Total 2014-15 Difference Percent 1 Alamo Community College $ 129,240,643 $ 118,227,417 $ - $ - $ - $ 118,227,417 $ (11,013,226) -8.52% 2 Alvin Community College $ 14,318,460 $ 13,345,083 $ 500,000 $ - $ - $ 13,845,083 $ (473,377) -3.31% 3 Amarillo College $ 30,418,247 $ 28,590,962 $ - $ - $ - $ 28,590,962 $ (1,827,285) -6.01% 4 Angelina College $ 15,048,551 $ 13,662,467 $ - $ - $ - $ 13,662,467 $ (1,386,084) -9.21% 5 Austin Community College $ 91,427,564 $ 85,974,404 $ - $ 712,500 $ - $ 86,686,904 $ (4,740,660) -5.19% 6 Blinn College $ 42,535,717 $ 41,632,966 $ - $ 507,654 $ - $ 42,140,620 $ (395,097) -0.93% 7 Brazosport College $ 9,756,191 $ 8,936,248 $ - $ - $ 183,742 $ 9,119,990 $ (636,201) -6.52% 8 Central Texas College $ 39,342,630 $ 37,943,510 $ - $ - $ - $ 37,943,510 $ (1,399,120) -3.56% 9 Cisco Junior College $ 10,757,962 $ 9,380,304 $ - $ - $ - $ 9,380,304 $ (1,377,658) -12.81% 10 Clarendon College $ 4,899,324 $ 3,868,805 $ 500,000 $ - $ - $ 4,368,805 $ (530,519) -10.83% 11 Coastal Bend College $ 12,832,959 $ 11,294,669 $ 500,000 $ - $ - $ 11,794,669 $ (1,038,290) -8.09% 12 College of the Mainland $ 11,852,634 $ 10,703,303 $ - $ - $ - $ 10,703,303 $ (1,149,331) -9.70% 13 Collin County Community College $ 61,297,934 $ 61,158,598 $ - $ - $ - $ 61,158,598 $ (139,336) -0.23% 14 Dallas County College $ 182,464,760 $ 168,109,315 $ - $ 3,865,476 $ - $ 171,974,791 $ (10,489,969) -5.75% 15 Del Mar College $ 32,642,135 $ 29,420,901 $ - $ - $ - $ 29,420,901 $ (3,221,234) -9.87% 16 El Paso Community College $ 63,617,200 $ 62,427,146 $ - $ - $ - $ 62,427,146 $ (1,190,054) -1.87% 17 Frank Phillips College $ 4,078,024 $ 3,295,382 $ 500,000 $ - $ - $ 3,795,382 $ (282,642) -6.93% 18 Galveston College $ 6,507,766 $ 6,095,529 $ - $ - $ - $ 6,095,529 $ (412,237) -6.33% 19 Grayson County College $ 15,074,682 $ 13,647,144 $ - $ - $ - $ 13,647,144 $ (1,427,538) -9.47% 20 Hill College $ 13,726,076 $ 12,509,470 $ - $ 513,000 $ - $ 13,022,470 $ (703,606) -5.13% 21 Houston College $ 140,246,045 $ 132,964,259 $ - $ - $ - $ 132,964,259 $ (7,281,786) -5.19% 22 Howard College $ 20,522,942 $ 12,627,283 $ 500,000 $ 5,302,586 $ - $ 18,429,869 $ (2,093,073) -10.20% 23 Kilgore College $ 21,955,033 $ 19,635,840 $ - $ - $ - $ 19,635,840 $ (2,319,193) -10.56% 24 Laredo Community College $ 21,908,258 $ 19,934,068 $ - $ 322,390 $ - $ 20,256,458 $ (1,651,800) -7.54% 25 Lee College $ 18,018,480 $ 15,940,572 $ - $ - $ - $ 15,940,572 $ (2,077,908) -11.53%
LBB Document 2/7/2013 2012-13 Base 2014-15 General Revenue Recommendations Biennial Change Public Community/Junior College Total 2012-13 Formula Small Inst. Supp. Special Items B.A.T. Total 2014-15 Difference Percent 26 Lone Star College $ 129,758,007 $ 134,971,688 $ - $ - $ - $ 134,971,688 $ 5,213,681 4.02% 27 McLennan College $ 27,566,939 $ 25,308,405 $ - $ - $ - $ 25,308,405 $ (2,258,534) -8.19% 28 Midland College $ 17,443,071 $ 15,195,061 $ - $ 710,650 $ 173,062 $ 16,078,773 $ (1,364,298) -7.82% 29 Navarro College $ 31,501,650 $ 29,950,877 $ - $ - $ - $ 29,950,877 $ (1,550,773) -4.92% 30 North Central Texas College $ 19,671,661 $ 20,013,283 $ - $ - $ - $ 20,013,283 $ 341,622 1.74% 31 Northeast Texas Community College $ 8,772,097 $ 8,453,101 $ - $ - $ - $ 8,453,101 $ (318,996) -3.64% 32 Odessa College $ 13,751,587 $ 13,173,423 $ - $ - $ - $ 13,173,423 $ (578,164) -4.20% 33 Panola College $ 7,104,375 $ 7,184,150 $ - $ - $ - $ 7,184,150 $ 79,775 1.12% 34 Paris Junior College $ 17,818,694 $ 16,060,997 $ - $ - $ - $ 16,060,997 $ (1,757,697) -9.86% 35 Ranger Junior College $ 4,956,975 $ 5,229,496 $ 500,000 $ - $ - $ 5,729,496 $ 772,521 15.58% 36 San Jacinto College $ 73,037,114 $ 70,241,835 $ - $ - $ - $ 70,241,835 $ (2,795,279) -3.83% 37 South Plains College $ 27,026,596 $ 24,764,988 $ - $ - $ - $ 24,764,988 $ (2,261,608) -8.37% 38 South Texas Community College $ 66,048,151 $ 63,669,968 $ - $ - $ 1,025,602 $ 64,695,570 $ (1,352,581) -2.05% 39 Southwest Texas College $ 13,727,030 $ 12,538,273 $ - $ - $ - $ 12,538,273 $ (1,188,757) -8.66% 40 Tarrant County $ 104,951,385 $ 103,151,745 $ - $ - $ - $ 103,151,745 $ (1,799,640) -1.71% 41 Temple Junior College $ 15,625,329 $ 14,030,682 $ 500,000 $ - $ - $ 14,530,682 $ (1,094,647) -7.01% 42 Texarkana College $ 14,926,197 $ 12,595,818 $ - $ - $ - $ 12,595,818 $ (2,330,379) -15.61% 44 Trinity Valley College $ 21,972,396 $ 20,666,013 $ - $ - $ - $ 20,666,013 $ (1,306,383) -5.95% 45 Tyler Junior College $ 33,953,034 $ 31,016,824 $ - $ - $ - $ 31,016,824 $ (2,936,210) -8.65% 46 Vernon College $ 11,377,375 $ 9,544,900 $ 500,000 $ - $ - $ 10,044,900 $ (1,332,475) -11.71% 47 Victoria College $ 11,848,156 $ 10,839,394 $ - $ - $ - $ 10,839,394 $ (1,008,762) -8.51% 48 Weatherford College $ 15,330,190 $ 14,639,167 $ - $ - $ - $ 14,639,167 $ (691,023) -4.51% 49 Western Texas College $ 7,145,083 $ 6,464,848 $ 500,000 $ - $ - $ 6,964,848 $ (180,235) -2.52% 50 Wharton College $ 17,099,458 $ 16,233,928 $ - $ - $ - $ 16,233,928 $ (865,530) -5.06%
Total $ 1,726,902,768 $ 1,627,264,509 $ 4,500,000 $ 11,934,256 $ 1,382,406 $ 1,645,081,171 $ (81,821,597) -4.74%
43 Texas Southmost College $ 22,477,955 $ 15,987,530 $ - $ - $ - $ 15,987,530 (6,490,425) -28.87% Grand Total $ 1,749,380,723 $ 1,643,252,039 $ 4,500,000 $ 11,934,256 $ 1,382,406 $ 1,661,068,701 $ (88,312,022) -5.05%
LBB Document 2/7/2013 Section 3c 2014-15 Formula General Revenue Summary Compared to 2012-13
2012-13 2014-15 Formula Biennial Change Formula Public Community/Junior College Difference Percent Change 1 Alamo Community College $ 129,240,643 $ 118,227,417 $ (11,013,226) -8.52% 2 Alvin Community College $ 14,318,460 $ 13,345,083 $ (973,377) -6.80% 3 Amarillo College $ 30,418,247 $ 28,590,962 $ (1,827,285) -6.01% 4 Angelina College $ 15,048,551 $ 13,662,467 $ (1,386,084) -9.21% 5 Austin Community College $ 90,715,064 $ 85,974,404 $ (4,740,660) -5.23% 6 Blinn College $ 42,028,063 $ 41,632,966 $ (395,097) -0.94% 7 Brazosport College $ 9,631,108 $ 8,936,248 $ (694,860) -7.21% 8 Central Texas College $ 39,342,630 $ 37,943,510 $ (1,399,120) -3.56% 9 Cisco Junior College $ 10,757,962 $ 9,380,304 $ (1,377,658) -12.81% 10 Clarendon College $ 4,399,324 $ 3,868,805 $ (530,519) -12.06% 11 Coastal Bend College $ 12,332,959 $ 11,294,669 $ (1,038,290) -8.42% 12 College of the Mainland $ 11,852,634 $ 10,703,303 $ (1,149,331) -9.70% 13 Collin County Community College $ 61,297,934 $ 61,158,598 $ (139,336) -0.23% 14 Dallas County College $ 178,760,764 $ 168,109,315 $ (10,651,449) -5.96% 15 Del Mar College $ 32,642,135 $ 29,420,901 $ (3,221,234) -9.87% 16 El Paso Community College $ 63,617,200 $ 62,427,146 $ (1,190,054) -1.87% 17 Frank Phillips College $ 3,578,024 $ 3,295,382 $ (282,642) -7.90% 18 Galveston College $ 6,507,766 $ 6,095,529 $ (412,237) -6.33% 19 Grayson County College $ 15,074,682 $ 13,647,144 $ (1,427,538) -9.47% 20 Hill College $ 13,213,076 $ 12,509,470 $ (703,606) -5.33% 21 Houston College $ 140,246,045 $ 132,964,259 $ (7,281,786) -5.19% 22 Howard College $ 14,720,356 $ 12,627,283 $ (2,093,073) -14.22% 23 Kilgore College $ 21,955,033 $ 19,635,840 $ (2,319,193) -10.56% 24 Laredo Community College $ 21,585,868 $ 19,934,068 $ (1,651,800) -7.65% 25 Lee College $ 18,018,480 $ 15,940,572 $ (2,077,908) -11.53% 26 Lone Star College $ 129,758,007 $ 134,971,688 $ 5,213,681 4.02% 27 McLennan College $ 27,566,939 $ 25,308,405 $ (2,258,534) -8.19% 28 Midland College $ 16,638,077 $ 15,195,061 $ (1,443,016) -8.67% 29 Navarro College $ 31,501,650 $ 29,950,877 $ (1,550,773) -4.92% 30 North Central Texas College $ 19,671,661 $ 20,013,283 $ 341,622 1.74% 31 Northeast Texas Community College $ 8,772,097 $ 8,453,101 $ (318,996) -3.64% 32 Odessa College $ 13,751,587 $ 13,173,423 $ (578,164) -4.20% 33 Panola College $ 7,104,375 $ 7,184,150 $ 79,775 1.12% 34 Paris Junior College $ 17,818,694 $ 16,060,997 $ (1,757,697) -9.86% 35 Ranger Junior College $ 4,456,975 $ 5,229,496 $ 772,521 17.33% 36 San Jacinto College $ 73,037,114 $ 70,241,835 $ (2,795,279) -3.83% 37 South Plains College $ 27,026,596 $ 24,764,988 $ (2,261,608) -8.37% 38 South Texas Community College $ 65,337,620 $ 63,669,968 $ (1,667,652) -2.55% 39 Southwest Texas College $ 13,727,030 $ 12,538,273 $ (1,188,757) -8.66% 40 Tarrant County $ 104,951,385 $ 103,151,745 $ (1,799,640) -1.71% 41 Temple Junior College $ 15,125,329 $ 14,030,682 $ (1,094,647) -7.24% 42 Texarkana College $ 14,926,197 $ 12,595,818 $ (2,330,379) -15.61% 44 Trinity Valley College $ 21,972,396 $ 20,666,013 $ (1,306,383) -5.95% 45 Tyler Junior College $ 33,953,034 $ 31,016,824 $ (2,936,210) -8.65% 46 Vernon College $ 10,877,375 $ 9,544,900 $ (1,332,475) -12.25% 47 Victoria College $ 11,848,156 $ 10,839,394 $ (1,008,762) -8.51% 48 Weatherford College $ 15,330,190 $ 14,639,167 $ (691,023) -4.51% 49 Western Texas College $ 6,645,083 $ 6,464,848 $ (180,235) -2.71% 50 Wharton College $ 16,599,458 $ 16,233,928 $ (365,530) -2.20%
Total $ 1,709,700,034 $ 1,627,264,509 $ (82,435,525) -4.82%
43 Texas Southmost College $ 22,477,955 $ 15,987,530 $ (6,490,425) -28.87% Grand Total $ 1,732,177,989 $ 1,643,252,039 $ (88,925,950) -5.13%
LBB Document 2/7/2013 Section 3d 2014-15 Contact Hours Compared to 2012-13
Public Community/Junior College 2012-13 2014-15 Difference Percent Change 1 Alamo Community College 24,065,719 21,504,667 (2,561,052) -10.64% 2 Alvin Community College 2,577,914 2,340,747 (237,167) -9.20% 3 Amarillo College 5,254,013 4,885,794 (368,219) -7.01% 4 Angelina College 2,702,772 2,371,614 (331,158) -12.25% 5 Austin Community College 16,567,470 15,750,948 (816,522) -4.93% 6 Blinn College 7,630,973 7,729,236 98,263 1.29% 7 Brazosport College 1,752,404 1,626,133 (126,271) -7.21% 8 Central Texas College 7,189,287 6,843,154 (346,133) -4.81% 9 Cisco Junior College 1,982,574 1,709,512 (273,062) -13.77% 10 Clarendon College 824,312 705,461 (118,851) -14.42% 11 Coastal Bend College 2,173,492 1,949,015 (224,477) -10.33% 12 College of the Mainland 2,152,680 1,923,974 (228,706) -10.62% 13 Collin County Community College 11,201,590 11,283,235 81,645 0.73% 14 Dallas County College 32,647,646 30,439,960 (2,207,686) -6.76% 15 Del Mar College 5,721,907 5,081,841 (640,066) -11.19% 16 El Paso Community College 11,408,846 11,420,746 11,900 0.10% 17 Frank Phillips College 659,650 595,998 (63,652) -9.65% 18 Galveston College 1,144,434 1,043,600 (100,834) -8.81% 19 Grayson County College 2,632,228 2,367,960 (264,268) -10.04% 20 Hill College 2,411,011 2,273,547 (137,464) -5.70% 21 Houston College 25,878,421 24,477,292 (1,401,129) -5.41% 22 Howard College 2,830,734 2,308,226 (522,508) -18.46% 23 Kilgore College 3,956,997 3,459,662 (497,335) -12.57% 24 Laredo Community College 3,890,531 3,572,675 (317,856) -8.17% 25 Lee College 3,260,749 2,789,227 (471,522) -14.46% 26 Lone Star College 23,008,350 24,624,482 1,616,132 7.02% 27 McLennan College 4,897,235 4,464,623 (432,612) -8.83% 28 Midland College 2,976,812 2,727,256 (249,556) -8.38% 29 Navarro College 5,656,907 5,401,732 (255,175) -4.51% 30 North Central Texas College 3,492,953 3,673,837 180,884 5.18% 31 Northeast Texas Community College 1,506,319 1,483,742 (22,577) -1.50% 32 Odessa College 2,388,996 2,304,583 (84,413) -3.53% 33 Panola College 1,148,661 1,242,568 93,907 8.18% 34 Paris Junior College 3,157,799 2,863,561 (294,238) -9.32% 35 Ranger Junior College 709,269 934,361 225,092 31.74% 36 San Jacinto College 12,785,723 12,496,502 (289,221) -2.26% 37 South Plains College 4,880,197 4,496,241 (383,956) -7.87% 38 South Texas Community College 11,426,939 11,395,173 (31,766) -0.28% 39 Southwest Texas College 2,681,899 2,297,994 (383,905) -14.31% 40 Tarrant County 19,091,020 18,946,052 (144,968) -0.76% 41 Temple Junior College 2,651,044 2,440,513 (210,531) -7.94% 42 Texarkana College 2,673,676 2,209,692 (463,984) -17.35% 44 Trinity Valley College 3,929,905 3,657,482 (272,423) -6.93% 45 Tyler Junior College 6,075,602 5,355,523 (720,079) -11.85% 46 Vernon College 1,941,584 1,630,121 (311,463) -16.04% 47 Victoria College 2,005,198 1,868,579 (136,619) -6.81% 48 Weatherford College 2,656,921 2,555,467 (101,454) -3.82% 49 Western Texas College 1,247,297 1,196,536 (50,761) -4.07% 50 Wharton College 2,968,349 2,925,435 (42,914) -1.45%
Subtotal 308,477,009 293,646,279 (14,830,730) -4.81%
43 Texas Southmost College 4,051,450 2,837,703 (1,213,747) -29.96% Grand Total 312,528,459 296,483,982 (16,044,477) -5.13%
Number of Districts Decreasing 42 Number of Districts Growing: 7 Number of Districts Decreasing > 3%: 37 Number of Districts Decreasing > 5%: 31 Section 3e
Contact Hour Change from Previous Base Period
40.00% Contact Hour Change (by District) 2012-13 Base Period to 2014-15 Base Period
30.00%
20.00% The median contact hour change is -7.2%
10.00%
0.00%
-10.00%
-20.00%
-30.00%
-40.00% Section 3f
Bachelor of Applied Technology (B.A.T.) Program - Dollars Allocated by Weighted Semester Credit Hours
*RATE: $ 38.00 2014-15 Semester Credit Hours Weights B.A.T. Dollars Generated
BRAZOSPORT COLLEGE Non-Tenure SCH TOTAL SCH 2014-15 Weight FY 2014 FY 2015
BAT LIBERAL ARTS 90 90 1.69 $ 5,780 $ 5,780 BAT SCIENCE - - 2.95 $ - $ - BAT BUSINESS ADMINISTRATION 1,165 1,165 1.75 $ 77,473 $ 77,473 BAT TECHNOLOGY 90 90 2.52 $ 8,618 $ 8,618 Total Semester Credit Hours 1,345 1,345 $ 91,871 $ 91,871
MIDLAND COLLEGE Non-Tenure SCH TOTAL SCH 2014-15 Weight FY 2014 FY 2015
BAT LIBERAL ARTS 198 198 1.69 $ 12,716 $ 12,716 BAT SCIENCE - - 2.95 $ - $ - BAT BUSINESS ADMINISTRATION 1,110 1,110 1.75 $ 73,815 $ 73,815 BAT TECHNOLOGY - - 2.52 $ - $ - Total Semester Credit Hours 1,308 1,308 $ 86,531 $ 86,531
SOUTH TEXAS COLLEGE Non-Tenure SCH TOTAL SCH 2014-15 Weight FY 2014 FY 2015
BAT LIBERAL ARTS 222 222 1.69 $ 14,257 $ 14,257 BAT SCIENCE 1,311 1,311 2.95 $ 146,963 $ 146,963 BAT BUSINESS ADMINISTRATION 4,829 4,829 1.75 $ 321,129 $ 321,129 BAT TECHNOLOGY 318 318 2.52 $ 30,452 $ 30,452 Total Semester Credit Hours 6,680 6,680 $ 512,801 $ 512,801
Total Per Fiscal Year B.A.T.: $ 691,203 $ 691,203 Total 2014-15 B.A.T.: $ 1,382,406
* Rate is based on the General Academic Institutions' Instruction and Operations Support Formula General Revenue Rate. Section 3g Small Institution Supplement
Eligibility Criteria - meet all 3 criteria to be eligible: Funding Criteria: Above average tax effort (Maintenance and Operations tax rate in top half) Eligible Districts receive an additional $250k per fiscal year. Below average tax yield (tax revenue per contact hour in bottom half) Below average district size (annual contact hours below median)
Raw Data Analysis of Tax Revenue Determination of Qualification Allocation
Contact Local Tax Tax Rate in Pennies Tax Dollars Tax Dollars Revenue per Effort: Result: Size: Qualify for GR for SIS District Hours1 Income2 per $1003 per CH per Penny Penny/CH Tax Rate at/over RPP/CH at/under CHs in Bottom Half Supplement? $4,500,000 $.13126/$100? $.2294? (< 3.0 million)? 5442910 1 Alvin Community College 2,340,747 10,131,238 17.48670 4.33 579,368 0.2475 YES YES YES YES 500,000 2 Clarendon College 705,461 442,331 22.19290 0.63 19,931 0.0283 YES YES YES YES 500,000 3 Coastal Bend College 1,949,015 1,812,993 16.80000 0.93 107,916 0.0554 YES YES YES YES 500,000 4 Frank Phillips College 595,998 1,376,499 22.00000 2.31 62,568 0.1050 YES YES YES YES 500,000 5 Howard College 2,308,226 4,388,681 20.49120 1.90 214,174 0.0928 YES YES YES YES 500,000 6 Ranger Junior College 934,361 237,348 24.88000 0.25 9,540 0.0102 YES YES YES YES 500,000 7 Temple Junior College 2,440,513 5,301,008 15.67000 2.17 338,290 0.1386 YES YES YES YES 500,000 8 Vernon College 1,630,121 2,038,823 22.67200 1.25 89,927 0.0552 YES YES YES YES 500,000 9 Western Texas College 1,196,536 4,066,974 15.23000 3.40 267,037 0.2232 YES YES YES YES 500,000 10 Wharton County Junior College 2,925,435 5,171,594 14.44800 1.77 357,945 0.1224 YES YES NO NO -
2014-15 Total 4,500,000 Median CHs of All 50 Districts 2,813,465 Median TRPP/CH: 0.2527
NOTES: 1. Contact hour data is from the Fall 2012, Summer 2012, and Spring 2012 semesters, as reported by THECB. 2. Tax income excludes taxes for General Obligation Bonds and other debt service. Source: FY 2011 AFRs, Exhibit 2 3. Includes only Maintenance and Operation tax rates. Rates taken from FY 2011 AFR Notes
LBB Document 2/7/2013 Section 4 Public Community/Junior Colleges Performance Review and Policy Report Highlights
Report Savings/ Gain/ Fund Included Reports & Recommendations Page (Cost) (Loss) Type in Introduced Bill Action Required During Session
NO RELATED RECOMMENDATIONS
Sec4_Agency 704.xlsx 2/7/2013 Section 5
Public Community/Junior Colleges Rider Highlights
2. Appropriation Eligibility. Amend the rider to no longer require the Community Colleges to report their salaries and emoluments for faculty and staff listed by position to the Higher Education Coordinating Board (Board). The information is not used by the Board and the Community Colleges report their faculty salaries in another report to the Board.
3. Approved Special Item Expenditures. Delete the rider since language is included in Approved Elements of Expenditure, Rider 14.
14. Approved Elements of Expenditures and Special Item Expenditures. Amend to include language clarifying the use of funds related to Special Items. Same language was previously included in Approved Elements of Expenditures, Rider 3.
New 20. Higher Education Coordinating Board Contingent Appropriations, Formula Funding for Texas Southmost College. New rider referencing a Higher Education Coordinating Board rider making a portion of formula funding for the University of Texas at Brownsville and Texas Southmost College contingent on the institutions providing the LBB with updated semester credit and contact hour data (see Selected Fiscal and Policy Issues Item).
New 21. Contingent Appropriations for Public Community and Junior Colleges. New rider making appropriations equal to benefits contributions due and payable for 2012-13 to the state contingent on the community colleges paying their 2012-13 Teacher Retirement System and Optional Retirement Program retirement contributions.
2/7/2013 Section 6 Public Community/Junior Colleges Items not Included in the Recommendations 2014-15 Biennial Total GR & GR- Dedicated All Funds
1. 2012-13 formula funding not recommended in 2014-15 due to contact hour decrease. $ 88,925,950 $ 88,925,950
2. Additional funding for the Community Colleges over the 2012-13 base with a new Student Success Funding Model $ 237,724,571 $ 237,724,571 recommended by the Higher Education Coordinating Board. Funding is included in three different components.
1. Core College Operations. $1 million per district for basic operating costs. 2. Ten percent of funding less core operations for Student Success Points. Funding is allocated based on student success points milestones.
3. Ninety percent of funding less core operations based on the number of instructional contact hours each college generates.
3. Alamo Community College - Expand Workforce Academies $ 1,000,000 $ 1,000,000
4. Alamo Community College - Provide Live Fire Training Buildings $ 5,000,000 $ 5,000,000
5. Austin Community College - Virtual College of Texas - Prior Reductions $ 287,500 $ 287,500
6. Dallas County Community College - Small Business Development Center $ 330,380 $ 330,380
7. El Paso County Community College - Texas Completes Initiative $ 439,485 $ 439,485
8. Houston Community College - Southeast College Expansion $ 311,374 $ 311,374
9. Houston Community College - Northwest UT-Tyler Engineering Program $ 3,362,463 $ 3,362,463
10. Houston Community College - Northwest Film Making Program $ 412,236 $ 412,236
11. Laredo Community College - Restore 10% if reduction is made $ 32,238 $ 32,238
Total, Items Not Included in the Recommendations $ 337,826,197 $ 337,826,197
Agency 704 2/7/2013 Texas State Government Effectiveness and Efficiency Reports
Shelia DeLeon - Analyst, Legislative Budget Board:
Improve Online Distance Education at Community Colleges by Using Cooperative Contracts and Open Enrollment Resources
Page 438 of the GEER Report
House Appropria ons Commi ee Ar cle III - Educa on Subcommi ee
Tes mony of Public Community Colleges
Dr. William “Bill” Holda, Chair - Texas Associa on of Community Colleges President, Kilgore College Mrs. Marie Flickinger, Chair - Community College Associa on of Texas Trustees Chair of the Board, San Jacinto College Dr. Richard Carpenter, Chair-Elect - Texas Associa on of Community Colleges Chancellor, Lone Star College System
February 15, 2013
1304 San Antonio, Suite 201 Aus n, Texas 78701 512/476-2572 www.tacc.org The community colleges of Texas understand that the most critical part of their mission is to focus on the success of the students who seek educational opportunity at our institutions. It is this overarching notion that drives our colleges, our faculty, and our staff around the state to make a difference in the lives of Texans. The Texas Association of Community Colleges recognizes that colleges must have a partner in the State of Texas to ensure that the success of our students remains the priority. To accomplish this goal, TACC proposes a 5-Point Campaign that asks state leaders to join us in this critical effort. I. Workforce and Skills Alignment II. Measuring and Funding Success III. College Readiness IV. Transfer and Articulation V. Texans in Community Colleges
• Student success is the highest priority of every community college in Texas. • The state’s community colleges are driving rapid and expansive improvements in public education to meet current and anticipated workforce needs. • Community colleges are economic and cultural engines in every part of the state, vital to their communities and key to advancing the individual aspirations of students.
February 15, 2013 1 2nd Largest Community College Enrollment
+20% +15% 320 312.3 296.4 240 259.4
160
80
0 2010-11 2012-13 2014-15
• Highest base year was last session (2012-13) with 312.3 million contact hours. • The 2012-13 base year was 20% higher than the 2010-11 base year. • Contact hours for the upcoming biennium (2014-15) are 296.4 million; the second highest base year for community colleges. • Bottom line: 15% of contact hour growth is not funded in HB 1.
February 15, 2013 2 Measuring and Funding Success
State Funding For colleges to be capable of effectively serving students, their communities, and the state they must be funded adequately. TACC believes there is a need to create a new way for the state to fund our institutions. To best accomplish the goal of student success, state funding should be broken down into three different components: • Core college operations: All colleges have basic operating costs regardless of geographic location or institutional size. (This funding would be set aside before other two funding elements). • Student Success Points: Ten percent of funding (less core operations) should be based on the metrics recommended in the Student Success Points. • Contact hour: Ninety percent of state funding (less core operations) for colleges should be based on the number of instructional contact hours each college generates.
$1 million/district 10% (less core) 90% (less core) $50 million total $191.8 million $1.727 billion
February 15, 2013 3 Measuring and Funding Success
Student Success Points
Student success in community colleges consists of effectively meeting the educational goals of students.
Community colleges are committed to increasing student success in Texas regardless of the student’s starting point or his/her destination. Building on the Momentum Points work between the Coordinating Board and the community colleges, TACC recommends a Student Success Points system that recognizes student achievement along a continuum from successful completion of college readiness courses to intermediate success measures to successful outcome metrics. The model also pinpoints area where metrics need to be developed and then included in the measurement of student success (e.g., ABE and High Demand Workforce metrics).
February 15, 2013 4 Measuring and Funding Success
Restoration of Employee Benefits: Student success cannot be achieved without quality faculty and support staff. Colleges must be able to recruit and retain such talent, which requires providing excellent employee benefits. The state must remain our partners in providing these benefits to our employees in a way that is cost effective for the college and employees.
• TACC requests the restoration of state employee Health Insurance Funding to 60% of ERS costs, and a return to 84% of ERS costs in the 84th session.
• Funding for the state’s employer share of Community College employees’ retirement at the Teachers Retirement System should be based on constitutional requirements.
Mid-Biennium Funding Reallocation: Remove language in rider #1 of the Community College bill pattern in House Bill 1, which was added last legislative session requiring a reallocation of state funding in the second year of the biennium.
1. Administra on of Appropriated Funds. Funds appropriated above shall be administered by the Texas Higher Educa on Coordina ng Board.
To ensure the efficient alloca on of state appropria ons, the Coordina ng Board shall reallocate the formula funds appropriated in this bill pa ern in the second year of the biennium using cer fied contact hour data from the previous academic year. The Higher Educa on Coordina ng Board shall exclude contact hours related to physical educa on courses for students who are registered to receive both high school and college credit from the contact hours used to reallocate formula funds in the second year of the biennium.
February 15, 2013 5 Measuring and Funding Success
New Mathways Project TACC supports the exceptional item funding request by the University of Texas at Austin to support the Charles A. Dana Center in developing and implementing the New Mathways Project in amount of $2.4 million.
The Challenge • Each year 60% of students entering Texas community colleges arrive unprepared for college-level coursework. • Mathematics preparation is especially problematic. • The current developmental mathematics courses designed to increase student readiness have not addressed this challenge.
The Solution • The New Mathways Project (NMP) is a statewide approach to reforming developmental education. The project includes the development of a set of accelerated mathematics courses and support systems to help students more quickly learn—and earn college-level credits in—rigorous mathematics. • Students need mathematics preparation aligned to their programs of study, majors and careers. • The NMP accelerates students to and through college-level mathematics courses in one year. It saves students time and money because they gain the skills needed to move more quickly to college-level work. It saves state resources because students enroll in fewer developmental mathematics courses and are more likely to complete a certificate or degree.
A Commitment from—and to—all Texas Community Colleges • The presidents from all 50 TACC community college districts voted unanimously to provide seed money for NMP development, demonstrating their commitment to statewide improvement. • Math faculty throughout the state endorse the project’s fundamental changes to course content. • The NMP is an accessible solution for all Texas community colleges—rural or urban, large or small—serving students from all backgrounds.
February 15, 2013 6 Exceptional Item Requests/Special Item Requests Since 1996, the special item policy of the Texas Association of Community Colleges has been to neither solicit nor accept new special item appropriations. TACC does support the existing special items: Southwest Collegiate Institute for the Deaf, the Virtual College of Texas, STARLINK, the Small Business Development Center, the Import/Export Training Center, and three museums (Star of the Republic, Heritage Museum/Genealogy Center, and American Airpower Heritage Museum). Before addressing specific items, it should be noted that special items are less than one percent of the General Revenue appropriation to community colleges. • STARLINK: STARLINK is one of two community college programs that enhance distance learning opportunities funded by the state. The STARLINK Training Network is in its twentieth year of providing innovative ideas, cutting- edge experts, and state-of-the-art training to higher education professionals via DVD and the Internet. As an agency of the Texas Association of Community Colleges, STARLINK offers cost-effective, high quality and dynamic learning opportunities to educational institutions, governmental agencies, and other public entities. The STARLINK network currently provides over 100 hours of professional development programming annually. Thank you for restoring the funding of STARLINK to $561,668 (FY 2010-11 level) in HB 1. • Virtual College of Texas: The Virtual College of Texas (VCT) is the other state-wide distance learning program funded by the state. VCT maximizes student access to higher education with its seamless model of delivering distance education. VCT makes it possible for a student to enroll in his/her local college for a distance education courses provided by other community or technical colleges in the state. Leveraging funds provided by the Legislature, VCT obtained statewide collaborative licenses for web-based services that support improving student success and distance-learning course quality. Through FY 2010 there have been over 56,000 enrollments in courses offered through VCT. TACC supports Austin Community College’s exceptional item request in the amount of $287,500, which will return the funding level for VCT to $1,000,000 (FY2010-11 levels; appropriation currently in HB 1: $712,500).
February 15, 2013 7 Financial Aid The ability to afford college opportunities is an issue that many students struggle to overcome. In Texas, less than ten percent of all grant aid to community college students comes from the state of Texas. But these dollars can be critical in allowing a student to pay for their education. TACC endorses the recommendation of the Sunset Commission to remove all two-year institutions from participation in the B-On-Time loan program and transfer the funding for public two-year institutions to the Texas Educational Opportunity Grant program. TACC recommends increased flexibility for community college financial aid directors to move funds between state financial aid programs thereby allowing them to direct funds in the most efficient manner.
Skills Development Fund
Texas community colleges are educating students and building their skills in the industries that are critical to sustaining Texas prosperity. Community colleges play an essential role in the health and prosperity of their local communities, regions, and the state. Providing offerings that link workforce demands to quality educational offerings that meet industry requirements. A key tool in achieving these goals is the Skills Development Fund (SDF).
TACC recommends reforming the Skills Development Fund to enhance the ability of community colleges to work with multiple employers to better serve students and workforce needs in their regions around the state.
The SDF allows a business or trade union to identify a training need, and then partner with a public community college to fill its specific needs. Businesses work with their college partners to submit proposals, develop curricula and conduct training. The SDF pays for the training, the college administers the grant, and businesses create new jobs and improve the skills of their current workers.
February 15, 2013 8 Adult Basic Education
Community colleges are a primary provider of ABE opportunities across Texas. This is part of the state directed mandate for our colleges in Sec. 130.0011 of the Education code, which requires community colleges in Texas to be open enrollment institutions. We recognize the need to serve these students but suggest several key recommendations to make ABE more efficient and effective.
TACC recommends the State provide sufficient funding for ABE. Texas currently serves slightly more than 100,000 students through ABE providers across the state. However, that is a small fraction of the more than 3 million eligible for ABE. This can be traced directly to the low level of state funding for this critical opportunity for so many Texans.
TACC recommends the state oversight of ABE be moved from the Texas Education Agency to the Texas Higher Education Coordinating Board Texas needs better alignment with Developmental Education, Continuing Education, and Credit programs of study. When ABE is offered on college campus, there is a powerful “place” effect for students to learn about college and see themselves as college students.
Bachelor of Applied Technology HB 1 appropriates $1.38 million in General Revenue to fund the Bachelor of Applied Technology (BAT). BATs are meeting the workforce needs of the local business community. The presidents of Brazosport College, Midland College, and South Texas College are here today and can expand on the benefits of funding BAT.
February 15, 2013 9 Community College Summary Data - Enrollment, Tui on/Fees, & Property Taxes
Texas Community Fall 2012 Tuition/Fees Per SCH, Spring 2013 Local Property Taxes - FY 2013 College District Enrollment In-District Out-District Out-State Total Valuation Est. Levy Total Rate Alamo 59,640 70 186 359 99,742,634,716 148,541,205 0.149 Alvin 5,195 56 95 137 6,048,212,091 12,035,942 0.199 Amarillo 11,414 77 116 177 10,536,907,742 22,196,411 0.200 Angelina 5,478 59 89 129 3,758,259,828 6,414,598 0.171 Austin 40,152 78 240 324 117,011,647,602 111,278,077 0.095 Blinn 17,495 76 123 201 2,264,399,954 1,283,915 0.057 Brazosport 4,095 77 111 158 6,367,649,344 16,519,975 0.259 Central Texas 13,548 63 82 185 7,655,741,136 10,718,038 0.140 Cisco 3,838 84 107 143 533,191,894 575,314 0.108 Clarendon 1,257 91 114 145 197,955,794 1,398,128 0.222 Coastal Bend 3,885 74 136 151 1,165,998,330 1,990,009 0.171 College of the Mainland 4,007 62 102 132 9,341,098,849 20,976,940 0.232 Collin 27,205 37 73 128 73,591,792,695 63,509,717 0.086 Dallas 78,415 52 97 153 164,751,737,568 196,672,387 0.119 Del Mar 11,022 92 154 179 17,986,670,894 46,406,151 0.258 El Paso 29,980 81 81 151 37,278,985,235 42,530,103 0.114 Frank Phillips 1,182 87 110 117 658,712,220 1,929,287 0.220 Galveston 2,194 65 77 140 5,188,154,835 9,826,365 0.189 Grayson 4,909 60 110 144 7,173,336,283 13,041,125 0.182 Hill 4,389 70 93 110 1,642,664,500 4,660,171 0.089 Houston 47,784 68 140 156 129,149,639,570 125,498,579 0.097 Howard 4,555 78 113 164 3,568,329,168 6,302,240 0.177 Kilgore 6,237 57 124 172 3,985,200,840 6,137,209 0.154 Laredo 9,170 113 163 215 10,608,924,028 27,345,987 0.258 Lee 6,216 63 93 146 8,596,157,464 20,716,739 0.241 Lone Star 78,023 67 137 152 121,040,000,000 145,005,920 0.120 McLennan 9,310 115 133 190 12,471,277,910 18,897,727 0.152 Midland 5,554 72 115 154 15,571,679,385 23,453,290 0.144 Navarro 10,150 58 92 136 2,774,259,367 3,301,369 0.119 North Central Texas 10,175 51 93 150 3,259,324,331 2,553,636 0.066 Northeast Texas 3,357 72 118 164 4,338,826,024 4,338,826 0.100 Odessa 5,036 80 119 157 11,988,311,035 22,438,522 0.187 Panola 2,633 67 107 135 4,085,200,390 5,931,302 0.145 Paris 5,514 57 88 135 1,545,046,451 2,889,237 0.187 Ranger 1,907 76 112 144 90,107,560 250,328 0.278 San Jacinto 33,106 55 96 146 37,280,070,614 69,192,557 0.186 South Plains 9,697 83 105 121 5,079,138,155 12,593,723 0.248 South Texas 30,825 103 112 238 29,645,534,071 44,675,820 0.151 Southwest Texas 5,935 82 131 147 1,973,625,094 2,565,713 0.130 Tarrant 65,955 55 86 205 123,803,891,671 184,430,657 0.149 Temple 5,492 88 154 234 2,988,258,214 6,836,359 0.204 Texarkana 4,045 76 116 162 1,280,964,397 1,348,433 0.105 Texas Southmost 6,130 213 213 564 10,902,983,558 17,764,776 0.163 Trinity Valley 7,170 70 118 146 7,920,701,069 8,454,172 0.089 Tyler 9,819 77 123 143 9,478,886,252 18,950,758 0.200 Vernon 3,137 86 128 198 986,475,610 2,198,400 0.223 Victoria 4,420 80 127 137 5,230,505,956 8,400,193 0.161 Weatherford 5,632 71 107 162 9,019,221,818 13,542,373 0.113 Western Texas 2,192 79 104 135 3,351,529,048 6,227,141 0.186 Wharton 7,408 86 137 169 3,657,562,724 5,055,117 0.138 Total 735,884 76 118 173 1,158,567,383,284 1,549,800,962 0.163 State Averages State Avg February 15, 2013 10