Honorable John Kuempel, Chair, House Committee on Higher Education
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB2171 by Guerra (Relating to the establishment of the Texas Center for Rural Health Education at The University of Texas Rio Grande Valley.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB2171, As Introduced : a negative impact of ($2,078,391) through the biennium ending August 31, 2025.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2024
($1,029,723)
2025
($1,048,668)
2026
($1,067,990)
2027
($1,087,699)
2028
($1,107,805)
All Funds, Five-Year Impact:
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
Change in Number of State Employees from FY 2023
2024
($1,029,723)
9.3
2025
($1,048,668)
9.3
2026
($1,067,990)
9.3
2027
($1,087,699)
9.3
2028
($1,107,805)
9.3
Fiscal Analysis
The bill would require The University of Texas System to establish the Texas Center for Rural Health Education (Center) at the University of Texas Rio Grande Valley. The bill would require the Center to perform an assessment of rural health education in the state, develop performance metrics for rural health education and outcomes, conduct research to identify best practices and underserved rural areas, develop recommendations for funding of tuition and loan repayment programs, develop partnerships to address health care shortages in underserved rural areas, develop a plan to improve rural health education and outcomes, and maintain a website. Starting December 1, 2024, the Center would be required to submit to the Legislature a biennial report on rural health education and outcomes in the state and include a summary of its activities along with recommendations. Under provisions of the bill, The University of Texas Rio Grande Valley would encourage public or private entities to participate in or support center operations. The University of Texas System would be allowed to solicit, accept, and administer gifts and grants from any public or private source for the purposes of the Center and may employ personnel for the Center as necessary.
Methodology
For purposes of this fiscal note it was assumed the State would appropriate General Revenue to support the creation of the Texas Center for Rural Health Education (Center). Based on information provided by The University of Texas Rio Grande Valley, an additional 9.3 FTEs would need to be hired to operate the Center. These FTEs include a Director, Assistant Director, two Outreach Coordinators, Web Specialist, and four Support Staff. Salaries and benefits for these FTEs total $947,223 in fiscal year 2024. Additional costs in fiscal year 2024 reflect other operating expenses, rent and costs related to travel. Administrative costs would increase beginning in fiscal year 2025 as merit increases are factored into salaries and benefits.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.