LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 18, 1997 TO: Honorable Irma Rangel, Chair IN RE: House Bill No. 1557, Committee Report 1st House, Substituted Committee on Higher Education By: Hinojosa House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB1557 ( Relating to the establishment and operation of a regional academic health center by the University of Texas System.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB1557-Committee Report 1st House, Substituted Implementing the provisions of the bill would result in a net impact of $0 to General Revenue Related Funds through the biennium ending August 31, 1999. Fiscal Analysis The bill would provide that the University of Texas System Board of Regents could establish and operate a Regional Academic Health Center (RAHC), serving Cameron, Hidalgo, Starr, and Willacy counties to provide undergraduate clinical, graduate, residency, or other levels of medical education. The board of regents could assign responsibility for management of the center to a component institution of the University of Texas System. The bill would require that costs of the operation of the center would be provided under the current operating budget of the component institution. The bill would authorize a public or private entity to provide adequate physical facilities for use by the center but would prohibit state funds to be used for the construction, maintenance, or operations of new facilities. The bill would allow a teaching hospital to be provided but it could not be constructed, maintained, or operated with state funds. Methodology Because the bill would require the center to be funded with the current operating budget of a component institution and would prohibit the facilities to be funded with state funds, it is assumed that all costs to the state would be funded within current appropriations and other funding available to the UT System component institutions. Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. No significant fiscal implication to units of local government is anticipated. Source: Agencies: LBB Staff: JK ,LP ,CF