U. of Texas at Dallas Gets $300-Million in Deal With Texas Instruments and State

By MICHAEL ARNONE
The Chronicle of Higher Education
Tuesday, July 1, 2003

The University of Texas at Dallas announced on Monday that it would receive $300-million over five years as part of a deal with Texas Instruments Inc., which plans to build a $3-billion manufacturing plant near the campus.

The university, in the northern Dallas suburb of Richardson, hopes the heavy influx of public and private cash will help it become one of the top research universities in the country, particularly in engineering, said Franklyn G. Jenifer, the university's president.

Key to the deal was $50-million from the Texas Enterprise Fund, which supplies money to foster business growth and job creation in the state. Gov. Rick Perry, a Republican, offered the money when Texas Instruments said it would consider building its new plant in Texas if the plant could be located near a nationally ranked research university. The Dallas area lacks such an institution, and the university has fought for years for national recognition.

The state will give the money to Texas Instruments, said Sharon Hampton, a spokeswoman for technology company, which will then turn it over to UT-Dallas. That will be all the money that the company will give the university, she said.

The deal came on the heels of Governor Perry's decision to eliminate two funds that had been created to promote basic research outside the state's two flagship university campuses, the University of Texas at Austin and Texas A&M University at College Station. According to the Dallas Morning News, UT-Dallas and UT-Arlington, which is also in the Dallas area, will together lose $6.2-million from those funds.

In the deal announced on Monday, UT-Dallas will receive $85-million from the Texas Permanent School Fund, which supports public education with proceeds from the sale and rental of state land.

The University of Texas System will provide $65-million, Mr. Jenifer said. Mark G. Yudof, the system's chancellor, has already given UT-Dallas $10-million and has promised $10-million a year for the next two years, Mr. Jenifer said. Mr. Yudof has also promised an additional $35-million over the next five years, Mr. Jenifer said. Some of that money -- from $15-million to $30-million, Dallas officials said -- has been previously allocated.

Private and corporate donors will provide $75-million, and $25-million will come from other sources.

The university plans to spend $105-million for a new, 200,000-square-foot building for research in natural science and engineering, and $30-million to equip it.

Some $15-million of the new funds would go to faculty salaries, and $75-million would pay for endowed faculty chairs and student fellowships and assistantships. Finally, $75-million would go for laboratory operations and administration, as well as matching funds to attract additional research and development.

The deal was made in secret over the past six months, Mr. Jenifer said. The faculty was informed on Monday and will now take part in planning how to use the money, he said.