(a) For the purposes of calculating the legislative appropriation required for an individual institution to become TUF-eligible or to receive Level 1 Base Funding, the legislature must appropriate an amount to the Texas University Fund not less than the difference between:      
        (1) the quotient of:                  (A) the market value of the Texas University Fund on September 1 of the state fiscal year; and                   (B) one minus an incoming institution’s percentage share of the Texas University Fund; and         
        (2) the market value of the Texas University Fund on September 1 of the state fiscal year.       
      (b) For purposes of calculating the legislative appropriation to become a TUF-eligible institution, an institution’s percentage share of the Texas University Fund for a state fiscal year shall equal the following calculation:      
        (1) If the institution meets the research expenditure criteria to receive Level 1 Base Funding upon entry, as defined in §15.25 of this subchapter (relating to Permanent Endowment for Education and Research Base Funding), the percentage share shall equal the share of Level 1 Base funding an institution would have received in Permanent Endowment for Education and Research Base Funding, as calculated in §15.25 of this subchapter, had an additional institution been included in the allocation as a recipient of Level 1 Base Funding.       
        (2) If the institution does not meet the research expenditure criteria to receive Level 1 Base Funding upon entry, as defined in §15.25 of this subchapter, the percentage share shall equal the share of Level 2 Base funding an institution would have received in Permanent Endowment for Education and Research Base Funding, as calculated in §15.25 of this subchapter, had an additional institution been included in the allocation as a recipient of Level 2 Base Funding.       
      (c) For purposes of calculating the legislative appropriation for a currently TUF-eligible institution to receive Level 1 Base Funding, an institution’s percentage share of the Texas University Fund for a state fiscal year shall equal the difference between the share of Level 1 Base Funding and Level 2 Base Funding an institution would have received in Permanent Endowment for Education and Research Base Funding, as calculated in §15.25 of this subchapter, had an additional institution been included in the allocation as a recipient of Level 1 Base Funding, instead of a recipient of Level 2 Base Funding.     
     Source Note:        The provisions of this §15.27 adopted to be effective February 15, 2024, 49 TexReg 680