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F I S C A L I M P A C T R E P O R T





SPONSOR: Eisenstadt DATE TYPED: 1/29/99 HB
SHORT TITLE: Funding Formula Cost Model Review SB 66
ANALYST: Pacheco-Perez


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY99 FY2000 FY99 FY2000
$ 200.0 Recurring GF



(Parenthesis ( ) Indicate Revenue Decreases)



Relates to HB2



SOURCES OF INFORMATION



Commission on Higher Education (CHE)



SUMMARY



Synopsis of Bill



This bill appropriates $200.0 to the Commission on Higher Education for the purpose of implementing a review of the cost model of the higher education funding formula with the intent of accurately reflecting the delivery of instruction including the technology for extended learning.



Significant Issues



According to the CHE, the project proposed in this bill will update the formula factors related to instructional costs resulting from inflation and other initiatives. It is a three year project and the highest priority of the CHE.



FISCAL IMPLICATIONS



The appropriation of $200.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY00 shall revert to the general fund.





CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP



The LFC has recommended $183.0 for this project which appears in House Bill 2.



OTHER SUBSTANTIVE ISSUES



The CHE offers the following benefits of implementation: