Brad Kane of the Legislative Budget Board told the subcommittee that the LBB’s introduced bill would recommend $4.2 billion in all funds for the 14 public health‑related institutions (HRIs) and Baylor College of Medicine for the 2026–27 biennium.

“Recommendations total $4,200,000,000 in all funds for the 20 20 six‑twenty 7 biennium, which is a decrease of $11,600,000 from 20 20 four‑twenty 5 base funding levels. Recommendations include $3,800,000,000 in general revenue, which is an increase of $120,900,000 from the previous biennium,” Kane said as he opened the HRI presentation.

Why it matters: the packet breaks HRI funding into education, research and patient‑care missions. The LBB said most of the general‑revenue increase stems from formula driver growth (FTE totals, predicted square feet and research expenditures) while many formula rates were maintained at 2024–25 levels.

Highlights from the presentation:
• Instruction and operations support: recommendations maintain 2024–25 rates and include roughly $1.5 billion in general revenue, an increase driven by formula drivers.
• Graduate medical education (GME): recommendations maintain prior rates and include $122.3 million in general revenue for GME formulas, including $24 million for Baylor College of Medicine; the LBB separately reported that Article III GME totals $449.1 million when Coordinating Board GME programs are included.
• Research formulas: LBB recommended maintaining 2024–25 rates for Research Enhancement and mission‑specific PBRO and other research funds; higher reported research expenditures increased recommended allocations by tens of millions of dollars.
• Clinical operations mission: recommendations include $756.4 million across mission‑specific clinical formulas, an increase compared with the prior biennium.

The LBB also detailed non‑formula funding, CCAP debt service (recommended at requested levels totaling about $363.4 million for HRIs in 2026–27) and FTE methodology. Kane noted several institution requests not included in recommendations and reminded the committee that some exceptional item totals reflect revised institution submissions as of Jan. 24.

Ending: Kane concluded the HRI presentation and offered to answer questions; the packet includes appendices with allocations and lists of items not included in recommendations for committee review.