The Legislative Budget Board on Jan. 24 told the House Appropriations Subcommittee on Article 3 that its introduced bill recommends $9,100,000,000 in all funds for general academic institutions for the 2026–27 biennium.

“Recommendations total 9,100,000,000.0 in all funds which represents a decrease of $1,500,000,000 from the 20 four‑twenty 5 biennium,” LBB analyst Colin Brock said as he opened the budget overview for the general academic institutions, Lamar State Colleges and Texas State Technical Colleges.

Why it matters: the presentation lays out the administration’s baseline spending assumptions for universities and affiliated institutions, the formula drivers the board used (semester credit hours, predicted square feet, at‑risk headcount and research expenditures), and the mechanics that influence how statutory tuition and general revenue are combined in allocations.

The board said general revenue recommendations total about $6.7 billion for GAIs, a reduction of roughly $1.4 billion tied mainly to one‑time appropriations and a decline in capital construction assistance project (CCAP) debt service that had supported institutions in the previous biennium. Brock told the panel that statutory tuition was estimated using base year data “to assess the impact of post COVID‑nineteen pandemic enrollment growth.” The LBB estimated that change would increase the statutory tuition appropriation by $180,800,000 in general revenue‑dedicated funds.

On the instruction and operations formula, Brock said the LBB applied a revised cost matrix recommended by the formula advisory committee and that the net effect of that change reduced the per‑weighted‑semester‑credit‑hour rate and lowered general‑revenue costs for the INO formula by about $10,000,000. Recommendations left infrastructure and other formula rates at 2024–25 levels in many cases but adjusted allocation amounts to reflect updated drivers and enrollment.

The packet also describes how formula funding is calculated on an all‑funds basis: statutory tuition estimates are considered first and then general revenue makes up the difference. Brock emphasized that appropriations to institutions are lump‑sum and institutions may move funds across strategies unless riders restrict spending for a specified purpose. Appendix materials in the packet list allocations by institution and the LBB noted that updated Coordinating Board data in the spring could change final formula impacts, which the authorizing conferees would resolve.

Details and caveats: the LBB listed $1.3 billion of general‑revenue non‑formula or “special item” reductions from the 2024–25 base, reflecting removal of one‑time and start‑up funding and cuts to institutional enhancement. The board also flagged a $36.3 million reduction tied to paid‑down CCAP debt service. FTE methodologies were explained (e.g., $100,000 per FTE for GAIs) and the LBB recommended placing FTE amounts into informational riders to align bill patterns with practice.

What the LBB told lawmakers it would not include: the presentation said requests not in recommendations — including exceptional item asks from institutions that totaled roughly $2.9 billion as of Jan. 24 — are listed in the packet for committee review and could be revisited when updated data is available.

Ending: Brock concluded by noting the presentation is the LBB’s introduced‑bill framework and that the Coordinating Board and institutions will provide updated data in spring and during conference committee should adjustments become necessary.