(a) In a state fiscal year, the Coordinating Board shall confer with the Legislative Budget Board to determine Permanent Endowment for Education and Research Base Funding for TUF-eligible institutions based on the following categories:
  (1) Level 1 Base Funding for TUF-eligible institutions that are eligible to receive the maximum allocation of base funding as calculated in subsection (b); and
  (2) Level 2 Base Funding for TUF-eligible institutions that are not eligible to receive the maximum allocation of base funding.
(b) A TUF-eligible institution shall receive Level 1 Base funding if it meets the following criteria:
  (1) The institution expended at least $45.0 million in combined Federal Expenditures and Private Expenditures in fiscal years 2021 and 2022; or
  (2) The institution expends at least $45.0 million in combined Federal Expenditures and Private Expenditures, adjusted in accordance with subsection (c), per state fiscal year during the prior two fiscal years and the legislature provides an appropriation to the Texas University Fund, as defined in §15.27 of this subchapter (relating to Percentage Share for Legislative Appropriation).
(c) For the purpose of calculating the threshold of research funding under subsection (b), beginning in state fiscal year 2025, and in each subsequent fiscal year, the qualifying amount of combined Federal Expenditures and Private Expenditures will be adjusted by any increase in the Consumer Price Index for All Urban Consumers (CPI-U) published by the United States Department of Labor during the preceding state fiscal year.
(d) Coordinating Board staff shall annually publish the threshold of combined Federal Expenditures and Private Expenditures required for an allocation of funding under subsection (b)(2).
(e) Once an institution meets the criteria in subsection (b), an institution remains eligible to receive Level 1 Base Funding in each subsequent state fiscal year. All other TUF eligible institutions shall receive Level 2 Base Funding in each state fiscal year.
(f) TUF-eligible institutions that are eligible for Level 1 Base funding shall receive the following share of the Permanent Endowment for Education and Research Base Funding. Two divided by the sum of:
  (1) the number of TUF-eligible institutions eligible for Level 1 funding multiplied by two; and
  (2) the number of TUF-eligible institutions that are not eligible to receive Level 1 funding.
(g) Level 2 Base Funding shall be half the share of Level 1 Base Funding.
(h) The percentage share for Level 1 and Level 2 Base Funding is then multiplied by the total amount distributed for the Permanent Endowment for Education and Research to determine each individual institution’s funding amount.

Source Note: The provisions of this §15.25 adopted to be effective February 15, 2024, 49 TexReg 680