The University of Texas System Board of Regents last week said the system would contribute $25 million a year to operations of a medical school in Austin if locals provide $35 million a year.
The regents also pledged $5 million a year for eight years for medical equipment at the proposed school.
The money will come from the Permanent University Fund, and the funding will be reviewed 10 years after the teaching hospital opens.
Sen. Kirk Watson, D-Austin, a proponent of the medical school, said work will begin now on how to generate the local annual match.
“This local funding can take a number of forms, including philanthropy, taxes, and assessments,” he said.
“We’ll be working over the coming weeks to flesh out how that participation should look and what proportion of it should be borne by different interests,” Watson said.
Officials with Seton Healthcare Family have committed $250 million to building a UT teaching hospital that would replace the University Medical Center Brackenridge. Seton Healthcare operates the public hospital near the UT campus.
The UT regents also approved a medical school in South Texas, but did not pledge any funding. The board said financing would have to come from other state and local sources.
Chancellor Francisco Cigarroa said there is no timetable for the teaching hospital in Austin but the need is urgent.
“This is a call to action,” he said. “The time is now. We don’t have any time to waste.”
UT president Bill Powers said he expects work to begin soon.
“We’re not talking years and years off, but we don’t have a specific date,” he said.