Texas Proposition 5, Rename State University Research Fund and Establish Ongoing Revenue Source Amendment (2023)

Texas Proposition 5
Election date November 7, 2023
Topic Education
Status a Approved
Type Constitutional amendment	Origin State legislature

Texas Proposition 5, the Rename State University Research Fund and Establish Ongoing Revenue Source Amendment, was on the ballot in Texas as a legislatively referred constitutional amendment on November 7, 2023. The ballot measure was approved.

A "yes" vote supported renaming the National Research University Fund to the Texas University Fund and allocating annually the interest income, dividends, and investment earnings from the state's rainy day fund to the university fund to support research activities at state universities.

A "no" vote opposed renaming the National Research University Fund to the Texas University Fund and establishing an ongoing revenue source for the fund.

Election results

Texas Proposition 5
Result		Votes	Percentage
Yes		1,622,620	64.35%
No		898,790	35.65%

Results are officially certified.

Source

Overview

How did Proposition 5 change the National Research University Fund (NRUF)?

See also: Text of measure

The amendment renamed the National Research University Fund (NRUF) to the Texas University Fund. It also allocated to the fund the interest, dividends, and investment earnings from the Economic Stabilization Fund (rainy day fund) from the preceding fiscal year. The total amount allocated in fiscal 2024 was limited to $100 million. The annual limit will be adjusted for inflation each year but is limited to a 2% growth rate. The University of Texas and Texas A&M systems are excluded from receiving money from the fund. The amendment also excluded money in the fund from the state appropriations limit. Expenses to manage the fund are to be paid for by the fund.

The Texas State Legislature also passed House Bill 1595 (HB1595), the implementing legislation. The bill requires the Texas Higher Education Coordinating Board (THECB) to determine the amount of each distribution, identify eligible institutions, and report the former to the state legislature and comptroller.

Why are the University of Texas and Texas A&M systems excluded from NRUF funding?

The University of Texas and Texas A&M systems are excluded from NRUF funding because they receive research funds from the Permanent University Fund, established in 1876 and funded by leasing revenue from state-owned lands in West Texas. One-third of the available profit of the PUF is distributed to the Texas A&M system annually, and the remaining available funds are distributed to the University of Texas system. As of 2023, the PUF was valued at over $30 billion.

When the NRUF was established with the adoption of Proposition 4 in 2009 it excluded the University of Texas and Texas A&M systems from funding.

Who supported and opposed Proposition 5?

See also: Support and Opposition

Texans for More Top Ranked Texas Universities PAC led the campaign in support of Proposition 5. Proposition 5 was endorsed by the Greater Houston Partnership, Greater Austin Chamber of Commerce, North Texas Commission, Teaching Hospitals of Texas, Texas Association of Business, and Texas Business Leadership Council during the legislative process. Harrison Keller, the Texas Commissioner of Higher Education, said, "The intent is to make these universities more competitive, strong and vital, especially in areas that will be important for regional and state economic development. ... This conversation about equity in funding and boosting emerging research universities has been going on for over a decade among policymakers. TUF is the most substantial investment in a lasting structure that other campuses can use to be more competitive."

Ballotpedia did not locate a campaign in opposition to the ballot measure.

Text of measure

Ballot title

The ballot title was as follows:

“

The constitutional amendment relating to the Texas University Fund, which provides funding to certain institutions of higher education to achieve national prominence as major research universities and drive the state economy.

”

Constitutional changes

See also: Article 3, Texas Constitution and Article 7, Texas Constitution

The measure amended section 49(g) of Article 3 and section 20 of Article 7 of the state constitution. The following underlined text was added, and struck-through text was deleted: Note: Use your mouse to scroll over the below text to see the full text.

Article 3, Section 49 (p) On the first business day occurring on or after the 90th day of each state fiscal year, an amount equal to the interest income, dividends, and investment earnings attributable to the economic stabilization fund for the preceding state fiscal year, not to exceed the amount determined under Subsection (q) of this section, is appropriated from the economic stabilization fund to the comptroller of public accounts for the purpose of immediate deposit to the credit of the Texas University Fund. For purposes of this subsection, the amount of interest income, dividends, and investment earnings attributable to the economic stabilization fund for a state fiscal year is computed by: (1) determining the amount of interest and dividends due to the fund for that fiscal year, including any interest credited to general revenue under Subsection (i) of this section; (2) adding to the amount determined under Subdivision (1) of this subsection an amount equal to the increase, if any, in the fair market value of the fund between the last day of that fiscal year and the last day of the preceding state fiscal year; and (3) subtracting from the amount determined under Subdivision (2) of this subsection the amount of any expenses of managing the investments of money in the fund that are paid from the fund during that fiscal year. (q) The amount of the appropriation made under Subsection (p) of this section may not exceed: (1) for the state fiscal year beginning September 1, 2023, $100 million; or (2) for a state fiscal year beginning on or after September 1, 2024, the amount determined under this subsection for the preceding state fiscal year adjusted by the increase, if any, in the general price level during the preceding state fiscal year, as determined by the comptroller of public accounts on the basis of changes in the consumer price index published by the Bureau of Labor Statistics of the United States Department of Labor or a successor agency and not to exceed two percent per state fiscal year. Article 7, Section 20 (a) There is established the Texas University Fund national research university fund for the purpose of providing a dedicated, independent, and equitable source of funding to enable emerging research universities in this state to achieve national prominence as major research universities. (g) The legislature shall establish criteria by which a state university may become eligible to receive a portion of the distributions from the fund. A state university that is entitled to participate in dedicated funding provided by Section 18 of this article is becomes eligible to receive a portion of the distributions from the fund in a state fiscal biennium remains eligible to receive additional distributions from the fund in any subsequent state fiscal biennium. The University of Texas at Austin and Texas A&M University are not eligible to receive money from the fund. :(i) For purposes of Section 22, Article VIII, of this constitution: (1) money in the fund is dedicated by this constitution; and (2) an appropriation of state tax revenues for the purpose of depositing money to the credit of the fund is treated as if it were an appropriation of revenues dedicated by this constitution.

Readability score

See also: Ballot measure readability scores, 2023

Using the Flesch-Kincaid Grade Level (FKGL) and Flesch Reading Ease (FRE) formulas, Ballotpedia scored the readability of the ballot title for this measure. Readability scores are designed to indicate the reading difficulty of text. The Flesch-Kincaid formulas account for the number of words, syllables, and sentences in a text; they do not account for the difficulty of the ideas in the text. The state legislature wrote the ballot language for this measure.

The FKGL for the ballot title is grade level 22, and the FRE is -10. The word count for the ballot title is 31.

Support

Texans for More Top Ranked Texas Universities PAC led the campaign in support of Proposition 5.

Supporters

Corporations

• Greater Houston Partnership

Organizations

• Greater Austin Chamber of Commerce
• North Texas Commission
• Teaching Hospitals of Texas
• Texas Association of Business
• Texas Business Leadership Council

Arguments

• Harrison Keller, the Texas Commissioner of Higher Education: "The intent is to make these universities more competitive, strong and vital, especially in areas that will be important for regional and state economic development. ... This conversation about equity in funding and boosting emerging research universities has been going on for over a decade among policy makers. TUF is the most substantial investment in a lasting structure that other campuses can use to be more competitive."
• Kelly Damphousse, president of Texas State University in San Marcos: "There’s no reason a state as big and well resourced as Texas shouldn’t have more top research universities,” he said. “We’re striving to be an R-1 institution; right now, we’re R-2 … but whereas before we were moving toward that goal incrementally, this new funding will allow us to move much faster."

Opposition

Opponents

Organizations

• Huffines Liberty Foundation
• Texans for Fiscal Responsibility
• Texas Eagle Forum
• True Texas Project

Arguments

• Huffines Liberty Foundation: "Research funding already lacks transparency and is often used in ways to increase profits for businesses and university researchers. Texans should reject additional funding for research that largely benefits Texas’ woke universities and big businesses."

Campaign finance

See also: Campaign finance requirements for Texas ballot measures

The campaign finance information on this page reflects the most recently scheduled reports processed by Ballotpedia, which covered through October 31, 2023. The deadline for the next scheduled reports is January 16, 2024.

Texans for More Top Ranked Texas Universities PAC was registered in support of Proposition 5 and reported $1.4 million in contributions. If you are aware of a committee registered to oppose this amendment, please email editor@ballotpedia.org.

	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Support	$1,393,886.00	$3,883.00	$1,397,769.00	$1,051,719.05	$1,055,602.05
Oppose	$0.00	$0.00	$0.00	$0.00	$0.00

Support

The following table includes contribution and expenditure totals for the committee in support of the ballot measure.

Committees in support of Proposition 5
Committee	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Texans for More Top Ranked Texas Universities PAC	$1,393,886.00	$3,883.00	$1,397,769.00	$1,051,719.05	$1,055,602.05
Total	$1,393,886.00	$3,883.00	$1,397,769.00	$1,051,719.05	$1,055,602.05

Donors

The following table shows the top donors to the committee registered in support of the ballot measure.

Donor	Cash Contributions	In-Kind Contributions	Total Contributions
Texas Tech Foundation Inc.	$450,000.00	$0.00	$450,000.00
Texas State University Development Foundation	$250,000.00	$0.00	$250,000.00
UNT Foundation Inc.	$250,000.00	$0.00	$250,000.00
University of Houston PAC	$150,000.00	$0.00	$150,000.00
Texas Tech Alumni and Friends PAC	$50,000.00	$0.00	$50,000.00

Methodology

To read Ballotpedia's methodology for covering ballot measure campaign finance information, click here.

Media editorials

See also: 2023 ballot measure media endorsements

Ballotpedia lists the positions of media editorial boards that support or oppose ballot measures. This does not include opinion pieces from individuals or groups that do not represent the official position of a newspaper or media outlet. Ballotpedia includes editorials from newspapers and outlets based on circulation and readership, political coverage within a state, and length of publication. You can share media editorial board endorsements with us at editor@ballotpedia.org.

Support

• Houston Chronicle Editorial Board: "Prop 5, Texas University Fund: For. The fund would split $4 billion across the endowments of four universities including the University of Houston. The investment would be transformational for UH and our city."
• The Dallas Morning News Editorial Board: "RECOMMENDATION: Yes. At the core of this constitutional change is a commitment by the state to invest in research and technology, as well as workforce development."
• San Antonio Express-News Editorial Board: "Proposition 5: We strongly support this proposition, which would create a nearly $4 billion endowment for Texas Tech University, Texas State University, University of North Texas and the University of Houston. It would rename the National Research University Fund as the Texas University Fund. Notably, the University of Texas and Texas A&M systems, which receive support from the Permanent University Fund, would be excluded. This proposition will elevate Texas' other university systems. Our view: For."
• Fort Worth Star-Telegram Editorial Board: "Texas would tap interest and other income from its robust rainy day savings account to fund research and other development at universities beyond Texas A&M and UT Austin. It’s a great deal for North Texas and Texas Tech. Recommendation: For."
• The Austin Chronicle Editorial Board: "Adding University Funding: Yes. In the past, the University of Texas at Austin and Texas A&M University have received most of the state's available research grants. Proposition 5 would create two new funds that would provide money for research grants to some of Texas' other large universities, including Texas State University, Texas Tech University, the University of Houston, and the University of North Texas. This will strengthen these universities, benefiting regional and state economic development."
• Austin American-Statesman Editorial Board: "The University of Texas and Texas A&M University are the only nationally recognized research universities in the state and already receive substantial funding for research. The amendment would allow more public universities in Texas to become eligible for research grants, which promote innovation, provide economic opportunities and help attract the brightest minds. Vote 'Yes.'"

Opposition

You can share campaign information or arguments, along with source links for this information, at editor@ballotpedia.org

Background

House Bill 1595 (2023)

During the 2023 legislative session, the Texas State Legislature passed House Bill 1595—the implementing legislation for the amendment. HB 1595 was passed in the Senate by a vote of 30-1 on May 27 and in the House by a vote of 128-12 on May 28. The law took effect on January 1, 2024.

The law renamed the National Research University Fund to the Texas University Fund (TUF) and authorized the Texas State Comptroller and the Texas Treasury Safekeeping Trust Company to manage the fund. The law lists Texas State University, Texas Tech University, the University of Houston; and the University of North Texas as eligible beneficiaries of the fund. A university would be eligible for the fund if it:

• does not receive funds from the state's Permanent University Fund;
• spent on average $20 million in federal and private research funds during the last three fiscal years beginning on September 1, 2023;
• awarded on average at least 45 research doctoral degrees per academic year during the last three academic years.

The state legislature was required to appropriate money to the TUF in an amount that ensures a stable and predictable stream of distribution for the eligible beneficiaries. The annual distribution to an institution from the fund is required not to be less than the difference between (a) the quotient of the market value of the fund on September 1 of the fiscal year in which an institution would receive the first distribution divided by the difference between one and the institution’s percentage share of the fund for the state fiscal year in which the institution would receive the initial distribution and (b) the market value of the fund on Sept. 1 of the state fiscal year in which the institution would receive the initial distribution.

The law limited the total amount distributed from the fund annually to 7% of the average net market value of the investment assets of the fund. The amount would be distributed to the permanent endowment for education and research base funding (75%) and to the research performance funding (25%).

The law changed the eligibility of which institutions can receive money from the national research support fund by including institutions that are eligible for distributions from the Permanent University Fund, spent a minimum of federal and private funds on research projects, or awarded on average 45 research doctoral degrees during the last three academic years.

National Research University Fund

See also: Section 20, Article 7 of the Texas Constitution and Texas Proposition 4 (2009)

The National Research University Fund (NRUF) was established in the Texas Constitution in 2009 with the adoption of Proposition 4. It was approved with 55.2% of the vote.

Proposition 4 added section 20 to Article 7 of the Texas Constitution to provide "a dedicated, independent, and equitable source of funding to enable emerging research universities in this state to achieve national prominence as major research universities." The amendment authorized the state legislature to adopt criteria for awarding distributions from the fund. The amendment also prohibited the University of Texas and Texas A&M University from receiving money from the fund since they received funding from the Permanent University Fund.

At the time of the election, eligibility requirements included:

• designated as an emerging research university in the Coordinating Board’s accountability system;
• expend at least $5 million in restricted research; and
• comply with four of the following:
  • $400 million endowment annually;
  • 200 doctoral degrees awarded annually;
  • freshmen class with high academic achievement;
  • membership in Association of Research Libraries, Phi Beta Kappa or equivalent national recognition;
  • high-quality faculty; and
  • commitment to high-quality graduate education.

In 2023, Texas Tech, the University of Houston, the University of Texas-Dallas, the University of Texas-Arlington, and the University of Texas-San Antonio qualified for NRUF funding.

Permanent University Fund

See also: Section 11, Article 7 of the Texas Constitution

The Permanent University Fund (PUF) was established when the Texas Constitution was adopted in 1876. Section 11 of Article 7 governs the fund which receives proceeds from the lease of land in West Texas, which encompasses 2.1 million acres. The land is leased to oil and gas companies, farmers for grazing, wind farms, and other revenue-generating activities. The fund is managed by the University of Texas/Texas A&M Investment Management Company (UTIMCO) under the authority of the UT System Board of Regents. One-third of the available profit of the PUF is distributed to the Texas A&M system annually, and the remaining available funds are distributed to the University of Texas system. As of 2023, the PUF was valued at over $30 billion.

Referred measures on the Texas ballot

See also: List of Texas ballot measures

In Texas, a total of 281 ballot measures appeared on statewide ballots between 1985 and 2022. Two hundred forty-eight ballot measures were approved, and 33 ballot measures were defeated.

Texas statewide ballot measures, 1985-2022
Total number	Annual average	Annual minimum	Annual maximum	Approved		Defeated
				#	%	#	%
281	6.39	0	22	248	88.26	33	11.74

Texas ballot measures in odd-numbered years

Between 1995 and 2021, Texans decided on 175 statewide ballot measures appearing on odd-numbered year ballots. Voters approved 160 measures and defeated 15.

Path to the ballot

See also: Amending the Texas Constitution

To put a legislatively referred constitutional amendment before voters, a two-thirds (66.67%) vote is required in both the Texas State Senate and the Texas House of Representatives.

This amendment was introduced as House Joint Resolution 3 on March 10, 2023. On April 17, 2023, the state House passed HJR 3 by a vote of 133-9 with eight not voting. On May 9, the Senate passed HJR 3 by a vote of 30-1. The chambers met in a conference committee to decide on a final version of the amendment. On May 27, the Senate adopted the conference committee version of the amendment by a vote of 30-1. On May 28, the House adopted the same version by a vote of 110-30 with nine not voting or absent.

Vote in the Texas State Senate May 27, 2023
Requirement: Two-thirds (66.67 percent) vote of all members in each chamber
Number of yes votes required: 21  a
	Yes	No	Not voting
Total	30	1	0
Total percent	96.8%	3.2%	0.0%
Democrat	12	0	0
Republican	18	1	0

Vote in the Texas House of Representatives May 28, 2023
Requirement: Two-thirds (66.67 percent) vote of all members in each chamber
Number of yes votes required: 100  a
	Yes	No	Not voting
Total	110	30	9
Total percent	73.8%	20.1%	6.1%
Democrat	35	24	5
Republican	75	6	4

How to cast a vote

See also: Voting in Texas

Click "Show" to learn more about voter registration, identification requirements, and poll times in Texas.

How to cast a vote in Texas

Poll times In Texas, all polling places are open from 7 a.m. to 7 p.m. Central Time. An individual who is in line at the time polls close must be allowed to vote. Texas is divided between Central and Mountain time zones. Registration Check your voter registration status here. To register to vote in Texas, an applicant must be a United States citizen, a resident of the county in which he or she is registering, and at least 17 years and 10 months old. The deadline to register to vote is 30 days before the election. Prospective voters can request a postage-paid voter registration form online or complete the form online and return it to the county voter registrar. Applications are also available at a variety of locations including the county voter registrar’s office, the secretary of state’s office, libraries, and high schools. Voter registration certificates are mailed to newly registered voters. Automatic registration Texas does not practice automatic voter registration. Online registration See also: Online voter registration Texas does not permit online voter registration. Same-day registration Texas does not allow same-day voter registration. Residency requirements Prospective voters must reside in the county in which they are registering to vote. Verification of citizenship See also: Laws permitting noncitizens to vote in the United States Texas does not require proof of citizenship for voter registration. Section 18.068 of the Texas Election Code says the following: “ The secretary of state shall quarterly compare the information received under Section 16.001 of this code and Section 62.113, Government Code, to the statewide computerized voter registration list. If the secretary determines that a voter on the registration list is deceased or has been excused or disqualified from jury service because the voter is not a citizen, the secretary shall send notice of the determination to the voter registrar of the counties considered appropriate by the secretary. ” —Section 18.068, Texas Election Code In January 2019, the Texas secretary of state’s office announced that it would be providing local election officials with a list of registered voters who obtained driver’s licenses or IDs with documentation such as work visas or green cards. Counties would then be able to require voters on the list to provide proof of citizenship within 30 days. The review was halted by a federal judge in February 2019, and Secretary of State David Whitley rescinded the advisory in April. A news release from Whitley’s office stated that “... going forward, the Texas Secretary of State's office will send to county voter registrars only the matching records of individuals who registered to vote before identifying themselves as non-U.S. citizens to DPS when applying for a driver's license or personal identification card. This will ensure that naturalized U.S. citizens who lawfully registered to vote are not impacted by this voter registration list maintenance process.” Verifying your registration The Texas Secretary of State’s office allows residents to check their voter registration status online by visiting this website. Voter ID requirements Texas requires voters to present photo identification while voting. The following list of accepted ID was current as of February 2023. Click here for the Texas Secretary of State's page on accepted ID to ensure you have the most current information. Texas driver’s license issued by the Texas Department of Public Safety (DPS) Texas Election Identification Certificate issued by DPS Texas Personal Identification Card issued by DPS Texas handgun license issued by DPS United States Military Identification Card containing the person’s photograph United States Citizenship Certificate containing the person’s photograph United States passport (book or card) Identification provided by voters aged 18-69 may be expired for no more than four years before the election date. Voters aged 70 and older can use an expired ID card regardless of how long ago the ID expired. Voters who are unable to provide one of the ID options listed above can sign a Reasonable Impediment Declaration and provide one of the following supporting documents: Copy or original of a government document that shows the voter’s name and an address, including the voter’s voter registration certificate Copy of or original current utility bill Copy of or original bank statement Copy of or original government check Copy of or original paycheck Copy of or original of (a) a certified domestic (from a U.S. state or territory) birth certificate or (b) a document confirming birth admissible in a court of law which establishes the voter’s identity (which may include a foreign birth document) The following voters are exempt from showing photo ID: Voters with a disability Voters with a disability "may apply with the county voter registrar for a permanent exemption to presenting an acceptable photo identification or following the Reasonable Impediment Declaration procedure in the county." Voters who have a religious objection to being photographed Voters who do not have a photo ID can obtain a Texas Election Identification Certificate (EIC) at any Texas driver’s license office during regular business hours. Voters can also obtain an Election Identification Certificate from a mobile station. Locations are listed here.

See also

2023 measures

• 2023 ballot measures
• Education on the ballot
• 2023 legislative sessions

Texas

• Texas ballot measures
• Texas ballot measure laws

News and analysis

• Ballot measure lawsuits
• Ballot measure readability
• Ballot measure polls

External links

• Texas House Joint Resolution 3