Four public universities will benefit from a new $3 billion endowment created to help them expand their research activities. Insider coverage of Texas politics that keeps the government in check. MAY 10, 2022 LEGISLATIVE BUDGET BOARD ID: 7503 3 Constitutional Capital Funding Permanent University Fund Established by three grants of land (1838, 1876, and 1883) totaling 2.1 million acres in 19 Texas Counties. Much of the land sits on the oil-rich Permian Basin, which the state leases to fossil fuel companies to the tune of about $6million daily as of last year, according to Bloomberg. PDF Permanent University Fund - Columbia University Tuition, state funding, and distributions from the Available University Fund comprise the vast majority of academic core funding in the university's budget. Sen. Charles Perry, R-Lubbock, alluded to a reckoning for the UT and Texas A&M systems one day. With an outcomes-based model, advocates say, schools will compete against their own performance history. Texas Tech, Texas State, University of North Texas, & University of Houston. Accordingly, distributions to the AUF in any given fiscal year are subject to the following: (1) A minimum amount equal to the amount needed to pay debt service on PUF bonds; (2) No increase from the preceding year (except as necessary to pay debt service on PUF bonds) unless the purchasing power of PUF investments for any rolling 10-year period has been preserved; (3) A maximum amount equal to seven percent of the average net fair market value of PUF's net position in any fiscal year, except as necessary to pay debt service on PUF bonds. The most recently added institution is Stephen F. Austin State University (SFA), which joined the UT System starting with the 202324 academic year. "[19] State Senator Kevin Eltife criticized CEO Bruce Zimmerman's bonus. Financial supporters play no role in the Tribune's journalism. The state's two flagship universities in Austin and College Station got. The Dr. James Curry Endowed Scholarship Fund Recipient 2022 | Website designed by nclud, Higher Education News, Opinion and Careers | Weekdays, Quick Summary of the Week's Higher Ed News | Fridays, Admissions and Enrollment News, Opinion and Careers | Mondays, Diversity News, Opinion and Career Advice | Tuesdays, Student Success News, Ideas, Advice and Inspiration | Weekdays, Rental Increases are Slowing DownExcept in Student Housing, Minimum Wage Gains, Community College Enrollment Losses, W.Va. Eligible institutions: emerging research institutions. Fitch Ratings - Chicago - 20 Apr 2022: Fitch Ratings has affirmed the 'AAA' rating on approximately $1.4 billion Board of Regents (BOR) of The Texas A&M University System (TAMUS) Permanent University Fund (PUF) bonds. Growing industries from semiconductors and agriculture to energy generation have identified a need for more job applicants with advanced degrees. University of Houston - News: The U.S. Department of Energy has awarded an LSU-led consortium a $4.9 million grant to support the first phase of the Pelican Gulf Coast Carbon Removal project. $14.4 billion Synopsis Fund Highlights The Texas Permanent University Fund, established in 1876, is likely the world's oldest natural resource fund. Top 5 Largest University Endowments - Investopedia The current institutions that qualify are Texas State, Texas Tech, UH and UNT, although other schools could qualify for funding if they meet the criteria. "To meet the challenges of a rapidly growing population, Texas will require an educated workforce and research-driven solutions," Huffman said. A new endowment for "emerging" Texas research universities [5] The AUF's distributions were directed, in 1931, by the legislature such that 2/3 of the money would go to UT Austin and 1/3 to Texas A&M, and also extended to be available for purchase of equipment and building construction. 529 Prepaid Tuition Plans: Also known as Qualified Tuition Programs (QTPs) or . Eligible institutions: doctoral, comprehensive, and masters institutions. Eligible public institutions are institutions of higher education designated as emerging research universities under the Coordinating Boards Accountability System or a university-affiliated entity of an emerging research university. Keller, the Texas higher education commissioner, said the Senate's proposal would probably provide about $240 million total to Texas State, Texas Tech, UH and UNT over two years. It will start either with $3.5billion or $4.5billion, depending on whether the Senate or House version ultimately makes it into the final state budget. The Legislature has approved measures to create the Texas University Fund and allocate a $3 billion endowment for higher education research for certain universities, pending voter approval of a. A 1988 constitutional amendment eliminated all investment restrictions related to the PUF for the UT board of directors in favor of adopting the "prudent person" standard for all investments, which was subsequently amended in 1999 to the "prudent investor" standard for investments. Texas Tech Continues Tradition of Legislative Success | TTU The Texas Constitution allows for (a) distributions to the AUF from the "total return" on PUF investments, including income return as well as capital gains (realized and unrealized) and (b) the payment of PUF expenses from PUF assets. They also provided an additional $3 billion to help relaunch the fund. Oil price crash threatens Texas university endowments The objective of the Fund is to provide a sustainable source of financing for the University of Texas and the Texas A&M University systems. TX: Fast-growing San Marcos to team up with Texas State on public Texas State University in San Marcos is one of four institutions that will immediately benefit from the new Texas University Fund, intended to help close the gap in state support between the University of Texas and Texas A&M and every other research university in the state. Inquiries regarding research funding and programs should be directed to the research team or Andrew Lofters. The House watered down SB 18 to keep faculty tenure and directed university governing boards to establish policies to grant and revoke tenure. Other Texas public universitiesnotably all institutions in the University of Houston System, the University of North Texas System, the TexasState System, the TexasTech System, and some UTSystem and TexasA&M System institutionsare prohibited by law from sharing the income from this endowment, but in 1984 a second fund was created to one day serve those schools: the Higher Education Fund (also known as the Higher Education Assistance Fund), a much smaller fund. Each university, however, has established research priorities: UH has a focus on affordable health care and drug discovery and development. Fitch Affirms BOR of Texas A&M Univ System PUF bonds at - Fitch Ratings Award-winning investigative reporting that holds institutions of power accountable through in-depth coverage of the City of Austin, the University of Texas at Austin, our schools and law enforcement agencies. Your California Privacy Rights/Privacy Policy. We see it as complementary to PUF in many ways, he said. On Tuesday, the House gave its final approval in a 136-11 vote to House Bill 1595 to change the name of the National Research University Fund, which currently provides funding to "emerging research. The proposal came from a state-appointed Commission on Community College Finance, which met between the 2021 and 2023 legislative session to review the current funding system and recommend other models. [20][21] In addition, UTIMCO has a chief executive officer and chief investment officer appointed by the board and a president appointed by the CEO and board; all employees of UTIMCO except the nine-member board of directors receive a salary and are eligible for annual bonuses.[19][22]. Texas ranked third among the states, with $5.0 billion in total research expenditures, behind California ($8.7 billion) and New York ($5.7 billion). The new fund requires voter approval. The State should prepare for a loss of billions of dollars in research and programmatic grants.. Texas Higher Education Accountability System, Texas Education Code, Chapter 62, Subchapter F-1, Research Reports, Policies, and Resources, Texas Education Code, Chapter 62, Subchapter E, Texas Education Code,Chapter 62, Subchapter C, Texas Records & Information Locator (TRAIL), State Auditors Office Fraud, Waste, or Abuse Hotline. The University of Texas Foundation, a public charity, can accept those gifts for the benefit of the University of Texas Institutions. Go behind the headlines with newly announced speakers at the 2023 Texas Tribune Festival, in downtown Austin from Sept. 21-23. Houston Republican Sen. Joan Huffman, chair of the Senate Finance Committee, filed both proposals in the Senate. At Baylor, he has been involved in various extracurricular activities and organizations. Keller said that while efforts to create an independent fund for these institutions were years in the making, he could not deny the effect lawmakers frustration with the Longhorns conference swap had on pushing the bill over the finish line. The Constitution does not allow AUF to be used for operational expenses for the other UT System institutions. Sipping From the Well: Understanding the Permanent University Fund Public universities got additional financial investments, too. And it sets up a path for other universities to access the fund . Plus, youll get access to USA TODAY Sports+ included. Texas A&M University's Board of Regents greenlit plans Wednesday to build a space institute next to NASA's Johnson Space Center in Houston, allocating $200 million toward its construction. We had an obligation to these people. [12] Grazing leases and other surface rights income are distributed to the AUF. To "continue addressing these issues, the committee substitute to SB 19 reforms the way Texas funds research at our institutions of higher education.". The PUF does not provide any funding to other public Universities in the State of Texas. A few decades later, that desertlike many across the American Southwestyielded black gold, and oil wealth flowed into PUFs coffers. Huffman stressed that the funding taken from the state's Economic Stabilization Fund to underwrite the TUF would not cut into the ESF fund's principal, or corpus. In keeping with these purposes, the lands are managed to produce two streams of income: one from oil, gas, and mineral interests, and the other from surface interests such as grazing. The Texas University Fund Amendment is not on the ballot in Texas as a legislatively referred constitutional amendment on November 7, 2023. Learn More. [Lobbying for TUF] has been a strategic process many years in the making, but a lot of things coalesced this session to make this the right time.. Currently, PUF land assets deliver proceeds through oil, gas, sulfur, and water royalties, rentals on mineral leases, and gains on fiduciary investments. DOE Funds Gulf Coast-Focused Direct Air Capture Hub Feasibility Study Cutting-edge research and innovation are occurring at Texas universities, adding fuel to our economic engine" Patrick said in a statement after the Senate legislation passed. (Courtesy of Texas State University). DOE Funds Gulf Coast-Focused Direct Air Capture - University of Houston Texas lawmakers made huge investments in community colleges and created new endowments for public universities. The PUF also benefits the UT and A&M institutions through an annual distribution of revenue from PUF investment returns to the Available University Fund (AUF). UTIMCO allocates the PUFs assets to internally and externally managed portfolios in accordance with guidelines approved in the PUF Investment Policy Statement. "[23] After heated interrogation by the State Senate Finance Committee, Rowling resigned from both his chairmanship of UTIMCO and vice chairmanship of UT Austin's board of regents. On 1 March 1996, the UT System board of regents authorized the nonprofit University of Texas Investment Management Company (UTIMCO) to manage UT System assets, including all of the PUF.[5]. The Permanent University Fund (PUF) is a public endowment contributing to the support of eligible institutions of The University of Texas and The Texas A&M University Systems. [2] In 1947, after World War II and during the education boom from the Servicemen's Readjustment Act of 1944, a constitutional amendment was passed that authorized the issuance of $15 million in AUF bonds, $10 million to the UT System and $5 million to the Texas A&M System.[4]. According to the state budget, Texas State University is estimated to receive about $22.4 million from the new fund in fiscal 2024. For higher education, the 2023 Texas legislative session was a mixed 1956 saw another amendment to the state constitution, this time setting the maximum AUF-backed bond issuance equal to 20% of the PUF's total asset value excluding land, as well as allowing Southwestern Medical School, Health Science Center at Houston, and M. D. Anderson Cancer Center, all of the UT System, access to AUF funds. Texas Higher Education Coordinating Board In January, conservative think tanks started to hone in on diversity, equity and inclusion offices, accusing them of indoctrinating students with left-wing ideology and forcing universities to hire people based on how much they support diversity efforts rather than merit and achievement. The estimated distribution for 2022 is $1.2B. State higher education leaders say that money will serve 70% of students in public community colleges and 70% of four-year university students who qualify. Sources of Revenue - University of Texas at Austin Governor Greg Abbott today listed the Governor's University Research Initiative (GURI) as one of his legislative priorities in his State of the State Address. Both Texas Tech and Texas State have research parks with accelerator programs. Dan Patrick. The Chairman of the board of regents defended Rowling, stating that the contracts obligated bonus payment and the large amounts, $1.05 million for the UTIMCO CEO and $2.3 million for other employees combined, were fairly inflexible.[19]. The Texas Tuition Promise Fund is designed to help families and individuals prepay for all or some future tuition and schoolwide. The supplemental budget includes millions of dollars for additional projects at individual universities. A portion of the returns from the PUF are annually directed towards the Available University Fund (AUF), which distributes the funds according to provisions set forth by the 1876 Texas Constitution, subsequent constitutional amendments, and the board of regents of the Texas A&M University System and University of Texas System.