Selected Issues 78th Session of the Texas Legislature

1. Selected Issues 78th Session of the Texas Legislature The University of Texas System Presentation to The University of Texas System Board of Regents August 7-8, 2002

2. U. T. Health Center at Tyler U. T. Southwestern Medical Center at Dallas U. T. M. D. Anderson Cancer Center U. T. Medical Branch at Galveston U. T. Health Science Center at San Antonio U. T. Health Science Center at Houston U. T. System Overview U. T. Dallas U. T. Arlington U. T. Permian Basin U. T. Tyler U. T. El Paso U. T. Austin U. T. San Antonio 9 Academic Components U. T. Pan American 6 Health Components U. T. Brownsville

3. Preparation for 78th Legislature: Goals • To increase participation in higher education • To increase success in higher education • To enhance the excellence of university programs • To increase level of federalresearch and developmentfunding • To maintain and enhance patient care

4. U.T. System’s Impact on Goals • U. T. System institutions enroll one-third of all Texas public university students • U. T. System institutions enroll almost three-fourthsof all Texas students enrolled in public health-related institutions • U. T. institutions account for seven of every 10federally financed R&D dollars spent by Texas public institutions

5. Five Major Themes • Funding to maintain and enhance current service levels • Funding to enhance participation, success, excellence and research • Excellence funding • Research including indirect cost reimbursement • K-16 programs to enhance participation and success

6. Improving performance through regulatory relief (deregulation package) • Health care finance • Hospital operations/indigent care funding • Other unique system issues • Regional Academic Health Center funding • Biotechnology and technology transfer • Nursing shortage

7. Summary of Themes • Funding to maintain and enhance current services • RECOMMENDATION: Request that the Legislature increase GR funds used for operating purposes by 4% per year, above increases necessary for enrollment growth.

8. Funding to enhance participation, success, excellence and research Excellence funding • RECOMMENDATION: That the several systems of higher education examine the development of a single formula for distributing HB 1839 funding in the future.

9. Funding to enhance participation, success, excellence and researchResearch • RECOMMENDATION: • a) To increase research formula funding for health-related institutions and implement a similar formula for general academic institutions. • b) To retain 100% of the indirect cost reimbursement to general academic institutions.

10. Funding to enhance participation, success, excellence and researchK-16 programs to enhance participation and success • RECOMMENDATION: • a) That U. T. System support request for funding for K-12/University partnerships to expand pre-college outreach programs. • b) That the U. T. System support a request for legislative funding of a retention formula supplement for economically disadvantaged students attending public universities.

11. Improving performance through regulatory relief • RECOMMENDATION: To pursue adoption of deregulation remedies identified by the U. T. System. U. T. System has identified fifty-three potential “deregulation” issues. If fully implemented, these changes could result in estimated savings or cost avoidance of $12 million annually for U. T. System and its components.

12. Health care finance • Hospital operations/indigent care funding • RECOMMENDATION: That General Revenue funding to offset the cost of indigent care provided at the U. T. Medical Branch hospitals be increased by 8% in FY 2004, plus an additional 4% in FY 2005, to maintain current service levels.

13. Other unique system issues Regional Academic Health Center • New health education programs currently being implemented in the Rio Grande Valley will require additional resources. • RECOMMENDATION: To provide for additional capital improvements at the U. T. Brownsville campus, for additional operating funds for the medical education program in Harlingen, and for operating funds at the medical research campus in Edinburg.

14. Other unique system issues Biotechnology and technology transfer • Biotechnology is a leading sector for rapid economic growth in Texas. • RECOMMENDATION: That the U. T. System support efforts to obtain funding for research parks affiliated with U. T. System institutions; support appropriate recommendations of the Governor’s Council on Science and Biotechnology Development; and, support initiatives to enhance the technology transfer efforts of U. T. System component institutions.

15. Other unique system issues Nursing shortage • There remains a significant demand for nurses in Texas’ health care industry. • RECOMMENDATION: The U. T. System should continue to seek additional funding to increase the capacity of nurse-training programs to produce more nurses.

16. Component Specific Issues • In addition to the issues having a System-wide impact, there are several issues that are component-specific. • Governmental Relations will work closely with the Offices of Academic Affairs, Health Affairs and the U. T. components to address their concerns and needs.

17. Other Issues To Be Addressed In Final Report • There are a variety of miscellaneous issues to be addressed which could enhance the operations of U. T. institutions. • Special item funding requests of the U. T. institutions, identified in Legislative Appropriations Requests, will be included in the final document submitted to the Board of Regents in November 2002.

18. Employee Group Health Insurance needs will be addressed in the final document. • The U. T. System and its component institutions will identify capital needs eligible for funding through tuition revenue bonds.

19. Important Dates • November 11, 2002 • Prefiling of legislation for 78th Legislature begins • November 13-14 • Report to Board of Regents on any proposed changes to U. T. System Legislative Issues • January 14, 2003 • 78th Texas Legislature convenes • June 2, 2003 • Last day of 78th Regular Legislative Session

20. U. T. System Components