Committee approves Board of Regents letter of intent to shift utility funds among campuses

The Joint Committee on Appropriations on April 30 approved a letter of intent allowing the Board of Regents to realign general fund utility dollars across campuses for fiscal year 2026.

Jeff Melhoff, chief fiscal analyst for the Legislature, said the LOI is a recurring, routine measure that permits institutions under the Board of Regents to shift utility allocations when exact dollar amounts are not known at the time budgets are set. "If the committee knows the dollar amount, those are done and approved as a budget transfer. But when the committee doesn't know the exact dollars being transferred at the time, a letter of intent is done to approve those transfers," Melhoff said.

Anne Lindell of the Board of Regents testified that institutions complete a utilities projection workbook and that weather, rate and utilization changes during the year make exact forecasts difficult. She told the committee that if any general fund utility dollars remain after transfers, campuses will revert those dollars back to the general fund.

Representative Colbeck moved to approve the LOI; Representative Muckey seconded. The committee recorded the vote as passing (17 yays, 1 absent). The LOI does not specify exact transfer amounts; it authorizes the Board to execute transfers as needs arise and to revert unused funds as agreed with BFM.

Melhoff and Lindell said the Board would provide details on reversions and final transfer amounts after the fiscal year close.