TITLE: CONCERNING THE ESTABLISHMENT OF THE COLORADO INSTITUTE FOR TELECOMMUNICATION EDUCATION.

Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues General Fund Cash Fund Exempt	$354,000	$354,000
State Expenditures General Fund Cash Fund Exempt	$354,000	$354,000
FTE Position Change	4.0 FTE	4.0 FTE
Other State Impact: None
Effective Date: 90 days after adjournment
Appropriation Summary for FY 1999-2000: $354,000 and 4.0 FTE additional Auxiliary Revenue Cash Fund spending authority required for the Department of Higher Education for the Regents of the University of Colorado.
Local Government Impact: None

This bill establishes an auxiliary unit to be known as the Colorado Institute for Telecommunications Education at the University of Colorado to promote, support, enhance, and provide interdisciplinary education that relates to telecommunications and information technology. The institute would develop operational partnerships with industry and other higher education providers in the state. The institute would:

• operate as an interface between higher education institutions and educational markets connected with the telecommunication and information technology business and industry;

The institute may develop, provide, and deliver educational programs; provide greater emphasis on school-to-work transitions; and identify desirable educational outcomes that promote student performance in the work place.

The organizational and governance structure for the institute would be developed by the University of Colorado with the approval of the Regents of the University of Colorado, and would include provisions for the appointment of an executive director of the institute. The Board of Regents would appoint a governing board that will play a significant role in the establishment of policies and direction for the institute. The executive director of the institute would develop a work plan on or before January 1, 2000. The plan would include a description of the educational programs to be offered by the institute, and the estimated revenue and capital and operating costs for the institute for a period of at least five years.

It is assumed that no General Fund moneys will be appropriated for the purposes of implementing the bill. The bill is assessed as having cash fund exempt revenue and expenditure fiscal impact at the University of Colorado from auxiliary sources. The bill would become effective 90 days after adjournment.

The University of Colorado has identified direct administrative costs to operate the Colorado Institute for Telecommunications Education at the Boulder campus of $354,000 annually beginning in FY 1999-00. The University of Colorado states that since the bill designates the Institute as an auxiliary, the source of funds for these expenditures will come from auxiliary sources. It is anticipated that these sources will be gifts, grants, and contracts from private sources, and will be sufficient to cover the administrative costs of the institute. These fund sources are assumed to be cash funds exempt, and not subject to state constitutional revenue limitations.

The University of Colorado has identified annual administrative costs related to the establishment of the Colorado Institute for Telecommunications Education, including 4.0 FTE. The personal services expenditures of $280,000 include 1.0 FTE Institute Director; 2.0 FTE Program Staff; and 1.0 FTE Clerical Support Staff. In addition, operating expenses for leased space, utilities, accounting and payroll support are estimated to be $74,000 annually. Total annual expenditures are therefore projected to be $354,000 annually beginning in FY 1999-00. The administrative staff will oversee the students and faculty that are currently in the program, as well as the addition of any new students that would be added to the program over time.

The bill designates the institute as an auxiliary unit. For purposes of this fiscal note, it is assumed that the institute would not qualify for enterprise designation, and that the expenses of the institute would be subject to annual appropriation by the General Assembly.

The fiscal note implies that the Department of Higher Education would require additional cash fund exempt spending authority for the Regents of the University of Colorado for the Auxiliary Revenue Cash Funds line item in the amount of $354,000 and 4.0 FTE for FY 1999-00 in order to implement the provisions of the bill.

The bill establishes the Colorado Institute for Telecommunication Education as an auxiliary unit, but it does not appear that the Institute meets the criteria to be established as an auxiliary unit.