Public universities and colleges in the United States have been fairly insulated from the global economic downturn, thanks in part to federal stimulus dollars.

The Texas Legislature has given the University of North Texas, Texas Woman’s University and North Central Texas College more than $22.6 million of American Recovery and Reinvestment Act funds in lieu of state appropriations, as well as one-time incentive payments, according to the schools.

However, Texas schools could see their budgets cut as stimulus funds disappear and state revenues shrink.

While state appropriations are given to universities biennially, they typically don’t stem from stimulus funding, said Jean Bush, UNT acting senior associate vice president for finance.

“If the state is short money — which the revenue projections are not as great with the economic downturn — there could be a delayed economic effect on the university because of the ARRA funds,” Bush said.

NCTC President Eddie Hadlock said he is concerned that state funding won’t be available in coming years, as the college and other schools grow.

“There is the possibility of a reduction in next year’s allocation,” Hadlock said. “We could even see a midyear cut of up to 10 percent.”

A 10 percent cut would roughly equate to $1 million from NCTC’s budget, he said.

The college is reviewing extreme measures it could possibly take if budgets are cut, including reducing the number of course offerings or capping enrollment, Hadlock said.

“We’re having some discussions in the college on what we can do to save some money if we do, in fact, end up with a midyear reduction,” Hadlock said.

Many higher education institutions received large shares of the stimulus funds, according to an executive order signed by Gov. Rick Perry.

Universities submitted applications for stimulus dollars through the Texas Higher Education Coordinating Board, which will oversee the distribution of $723 million in general revenue stimulus funds, said Andy Kesling, assistant director of communications for the board.

The board also will appropriate $80 million in incentive funding from the stimulus, he said.

“We will administer the funds on the criteria set out in legislation,” Kesling said. “The funds are given out on a reimbursement basis. The universities spend the money, based on the criteria, and present documentation on how it was spent.”

The lengthy paperwork process has TWU paying its hefty electric bill with the stimulus funds to free up money for other projects, said Brenda Floyd, TWU vice president of finance and administration.

The paperwork is the same regardless of the size of the bill and must be repeated for each transaction, she said.

“It’s the money we have, and we couldn’t turn the money down,” Floyd said. “We didn’t want to give it away.”

But there is a concern fewer dollars will be available in the future, she said.

“I am concerned about a reduction [in state funds] both from removing the stimulus dollars and potential cuts due to lower state revenue,” Floyd said.

The University of North Texas

UNT received $6,722,705 in biennial appropriations from stimulus funds, which the university plans to use for graduate and undergraduate scholarships, Bush said.

The funds will help at-risk students earn critical degrees — defined as research or science-driven degrees, she said.

UNT also plans to receive $3,428,464 in incentive funds for the 2009-10 fiscal year for university operations and additional funds in 2010-11, Bush said.

The UNT Health Science Center in Fort Worth received $3,438,054 in biennial state appropriations for faculty salaries, according to a university document.

The UNT system received $5 million in biennial appropriations for its law school for salaries, operations and capital investment, according to a university report.

Texas Woman’s University

TWU received $1,874,500 in fiscal 2009-10, which will be used to pay utility bills in order to free up money for other university projects, Floyd said.

The university will receive the same appropriation for fiscal year 2011, she said.

TWU will receive other stimulus money, including $1,171,600 in incentive funds for equipment for a new science building and $690,200 in incentive funds for a library database and subscription renewals, Floyd said.

North Central Texas College

NCTC received a portion of $15 million in stimulus funding placed in a pot for Texas colleges, Hadlock said.

NCTC received about $11 million in formula funding from the state, he said.

The college also received $172,947 in grant money from the stimulus dollars, which will be used to pay for additional adjunct instruction for basic courses and a new student identification/debit card system, Hadlock said.

CANDACE CARLISLE can be reached at 940-566-6889. Her e-mail address is ccarlisle@dentonrc.com.