LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session April 24, 1995 TO: Honorable Hugo Berlanga, Chair IN RE: Committee Substitute Committee on Public Health for House House of Representatives Bill No. 2311 Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 2311 (Relating to the establishment of a health professional recruitment program.) this office has determined the following: The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The bill would create the health professional recruitment program, a grant program to assist nonprofit, community-based organizations in recruiting and retaining health professionals to practice in medically underserved areas. The program would be administered by the Department of Health. Among the requirements for the administration of the program in the bill are the specifications that the department, in conjunction with the Center for Rural Health Initiatives, conduct field research, collect data, and prepare reports relating to the need for the program. The bill would create a stipend program, specifying that the Department award grants for one-year periods, with the amount of the grant not to exceed $15,000. The stipends are to be awarded to nonprofit, community-based organizations and may only be used to assist the organization in paying for the salary or expenses of health professionals. The bill would require that, not later than February 1, 1997, the Texas Board of Health report to the 75th Legislature regarding the allocation of funds and the progress of the program in recruiting and retaining resident physicians to practice in medically underserved areas. Assumptions in the fiscal implications noted below include: an estimated 60 grants at $15,000 each in fiscal year 1996, 70 in fiscal year 1997, 80 in fiscal year 1998, and 90 grants in fiscal years 1999 and 2000; funds to hire a statistician at the Department of Health to track data; and associated operating expenses, including travel and computer equipment. The bill would appropriate $330,000 to the Department of Health each year of the 1996-97 biennium to establish the recruitment program. Not more than 10 percent of the appropriation could be used for administration of the program. The probable fiscal implication of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Fiscal Probable Cost Out Change in Year of General Number of State Revenue Fund 001 Employees from FY 1995 1996 $941,697 1.0 1997 1,085,907 1.0 1998 1,236,057 1.0 1999 1,386,207 1.0 2000 1,386,207 1.0 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. No fiscal implication to units of local government is anticipated. Source: Department of Health LBB Staff: JK, KF, DF