SENATE
                         NOTICE OF PUBLIC HEARING


COMMITTEE: Funding Issues in Education (Interim)

TIME & DATE:  8:30AM, Wednesday, April 8, 1998

PLACE: E1.036 Finance Cmte. Room

CHAIR: Senator Teel Bivins and Senator Bill Ratliff

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I.    CALL TO ORDER

II.   CHARGE #3 - MANAGEMENT, INVESTMENT AND DISTRIBUTION OF THE
      PERMANENT SCHOOL FUND, AVAILABLE SCHOOL FUND, PERMANENT
      UNIVERSITY FUND, AVAILABLE UNIVERSITY FUND AND HIGHER
      EDUCATION FUND

     - Management and Investment of the Permanent University Fund
         William H. Cunningham, Chancellor, The University of Texas
           System
         Thomas G. Ricks, President and CEO, University of Texas
           Investment Management Company (UTIMCO)

     -  Distribution of the Available University Fund, Permanent
        University Fund Bond Proceeds, Higher Education Fund, and
        Tuition Revenue Bond Proceeds

        Available University Fund and Permanent University Fund Bond
        Proceeds:
          William H. Cunningham, Chancellor, The University of Texas
          System
          Barry B. Thompson, Chancellor, Texas A&M University System

        Higher Education Fund Formula and Allocation Process:
          Don W. Brown, Commissioner, Higher Education Coordinating Bd.
          Roger W. Elliott, Assistant Commissioner for Research, Campus
            Planning and Finance, Higher Education Coordinating Bd.

        Tuition Revenue Bonds and Capital Allocation Comparison:
          Lauri Deviney, Team Manager for Higher Education, Legislative
            Budget Board

     -  Management and Investment of the Permanent School Fund:
          Dean Murray, Executive Administrator of the Permanent School
            Fund, Texas Education Agency

     -  Distribution of the Available School Fund:
          Robert Norris, Team Manager for Public Education, Legislative
            Budget Bd.

III.  CHARGE #5 - ALLOCATION OF FUNDS FOR SPECIAL ITEMS, MEDICAL
      SCHOOLS AND TEXAS A&M SERVICE AGENCIES

     -  Special Item Review
          Nancy Frank, Senior Budget Analyst, Senate Finance Committee

     -  Formulas for Health Science Centers
          Senator Bill Ratliff
          Tom Scott, Asst. Vice Chancellor for Governmental Relations,
           The University of Texas System, on behalf of the Health
           Science Center Funding Working Group

     -  Formula Funding for Texas A&M Service and Research Agencies
          Eric Wright, Director, Senate Finance Committee
          Stanton C. Calvert, Vice Chancellor for State and Public
           Affairs, Texas A&M University System

        Infrastructure Formula
          Roger W. Elliott, Assistant Commissioner for Research, Campus
           Planning and Finance, Higher Education Coordinating Board

        Research Formula:
          Stanton C. Calvert, Vice Chancellor for State and Public
            Affairs, Texas A&M University System
          James G. (Jim) Butler, Assistant Vice Chanceloor for External
            Affairs, Agriculture Program, Texas A&M University System
          Cathy Reiley, Assistant Vice Chancellor for External Affairs,
            Engineering Program, Texas A&M University System

IV.  CHARGE #1 - STATUS OF STUDENT FINANCIAL AID AND TUITION
     EXEMPTION/WAIVER PROGRAMS

     -  Recommended Changes to Student Financial Aid Policies,
        Including Consolidation of Programs, Report on Tuition
        Exemption/Waiver Statutes, and Cost of Scholarships to Students
        Completing the Recommended High School Program


        Don W. Brown, Commissioner, Higher Education Coordinating Board
        Sharon Cobb, Asst. Commissioner for Student Services, Higher
          Coordinating Board

V.    CHARGE #6 - COSTS OF TEXTBOOKS AND USE OF COMPUTERS AND OTHER
      TECHNOLOGICAL RESOURCES AS ALTERNATIVES TO TEXTBOOKS

      -  Costs of Textbooks and Electronic Textbook Pilot Program
         Ann Smisko, Associate Commissioner for Curriculum, Assessment
           and Technology, Texas Education Agency
         Robert Leos, Senior Director for Textbook Administration,
           Texas Education Agency

VI.   OTHER BUSINESS

      -   Recommendations of Formula Advisory Committee Regarding
          University Funding Formulas

          Don W. Brown, Commissioner, Higher Education Coordinating Bd.
          Roger W, Elliott, Asst. Commissioner for Research, Campus
           Planning and Finance, Higher Education Coordinating Bd.

VII.  RECESS



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