According to the Legislative Budget Board (LBB), the fiscal implications of SB 2361 indicate a projected negative impact of $5 million to General Revenue over the 2026–27 biennium. This cost is directly associated with the administrative and operational transition of the University of Houston–Victoria (UHV) into the Texas A&M University System. The transition will require the complete replacement or integration of major technology systems—such as Human Capital Management, Financial Management Systems, Student Information Systems, and Learning Management Systems—that are currently managed by the University of Houston System​.

These conversion efforts represent significant upfront costs for the Texas A&M University System and are expected to be incurred immediately following the transfer's effective date of September 1, 2025. Additionally, while no specific appropriations are made in the bill, the measure would serve as the legal basis for future appropriations necessary to implement the transfer. The University of Houston System is also expected to incur locally funded costs associated with divesting itself from UHV, although the full extent of these expenses remains unknown and will depend on the final terms of the transition agreement between the two systems​.

The fiscal note further emphasizes that although the bill focuses on continuity of funding and governance transfer, future changes in tuition, fees, or bond structures following the transition could have undetermined state revenue implications. However, no significant fiscal impacts are anticipated for local units of government. Overall, while the bill is not expected to create recurring costs beyond the biennium, the short-term financial burden underscores the need for careful oversight and planning during implementation.

SB 2361 proposes transferring the University of Houston–Victoria (UHV) to the Texas A&M University System, rebranding it as Texas A&M University–Victoria, and shifting governance, bonding authority, and associated assets accordingly. The stated intent is to position the Victoria region for stronger economic integration with high-tech, energy, and STEM industries—fields in which the Texas A&M System has significant institutional strength.

Supporters of the bill argue that the Texas A&M name alone could serve as an economic engine for the region, attracting new students, research funding, and industry partnerships. Strategically, this realignment could elevate the university’s stature, increase enrollment, and enable long-term workforce development. These aspirations, however, are not codified in the bill, and their realization depends on actions taken by the A&M System after the transfer. There are no statutory requirements for programmatic expansion, local engagement, or performance measurement.

On the other hand, the bill carries an estimated $5 million in near-term transition costs, primarily related to IT and administrative systems that must be replaced. These costs are not currently funded. The shift also raises concerns about diminished local influence over the institution and a broader trend of consolidating power within a few higher education systems, without robust accountability or measurable justification.

Given the potential long-term benefits of the A&M affiliation and the short-term risks and costs, Texas Policy Research remains NEUTRAL on SB 236,1, reflecting cautious openness to the strategic vision while withholding full support until greater fiscal transparency, implementation detail, and stakeholder assurances are provided.

• Individual Liberty: The bill protects students’ and employees’ existing rights during the transition, preserving enrollment status, contracts, and benefits. However, it does not include community engagement requirements or mechanisms for local input once the Texas A&M System assumes control. The lack of formalized local governance or advisory representation may reduce residents’ influence over their regional university in the long term, a modest erosion of individual liberty in public institutional oversight.
• Personal Responsibility: There are no provisions that would directly impact students’ or staff members’ incentives to act with more or less personal responsibility. Academic and administrative standards remain largely unchanged. However, if the A&M System expands programs and raises performance expectations over time, it could indirectly promote a culture of higher achievement and accountability—but this is speculative.
• Free Enterprise: While the bill does not mandate new economic initiatives, it positions the university to benefit from the Texas A&M brand, particularly in STEM-related fields and high-tech workforce development. If the A&M System fulfills its intent to integrate UHV into its larger research and industry ecosystem, the Victoria region could attract new investment and entrepreneurial activity. However, since there is no guarantee of programmatic growth or private-sector partnerships in the bill itself, the free enterprise impact remains potential but not assured.
• Private Property Rights: The bill deals solely with state-owned public assets and does not interfere with private property. That said, existing agreements with private donors or local entities under the UH System could be reassessed or altered under new governance, depending on how the A&M System manages them. There’s no clear harm here, but some uncertainty.
• Limited Government: This is where the bill presents the clearest concern. The transfer expands the Texas A&M System’s governance without performance benchmarks, cost-efficiency measures, or legislative oversight post-transfer. It centralizes control of another public institution without voter input or a compelling case of existing failure at UHV. The $5 million transition cost, while manageable in the broader budget, represents an unfunded administrative expansion, running counter to the principle of restrained government growth.

• HB 5150 (Same As)