LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 9, 1997
         
         
      TO: Honorable Irma Rangel, Chair            IN RE:  House Bill No. 2613, Committee Report 1st House, Substituted
          Committee on Higher Education                              By: Cuellar
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2613 ( Relating 
to the creation of the Faculty Enhancement Fund for Generalist 
Physicians) this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB2613-Committee Report 1st House, Substituted
         
No significant fiscal implication to the State is anticipated. 
 
         
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 Coordinating Board has assumed that if funds are appropriated, 
the Program could be administered with five percent of the total 
appropriation in the first biennium and three percent of the 
total appropriation in the second biennium as authorized in 
the bill.  The Board estimates that if $330,000 was appropriated 
in each fiscal year, the Program would cost $27,297 to administer 
and employ two part-time employees.  Operating costs exceeding 
the amount authorized in the bill would be absorbed by the agency. 
 It is also assumed that the medical schools would encumber 
additional faculty salary costs.  Once the two-year grant period 
had ended, the institution would assume the amount equal to 
the annualized faculty enhancement award.  
          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   781   Higher Education Coordinating Board
                                         
                      LBB Staff:   JK ,LP ,CF