LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 28, 1997
TO: Honorable Irma Rangel, Chair IN RE: House Bill No. 2809, Committee Report 1st House, Substituted
Committee on Higher Education By: Edwards
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB2809 ( Relating
to the authority of certain institutions of higher education
to establish and maintain podiatry schools.) this office has
detemined the following:
Biennial Net Impact to General Revenue Funds by HB2809-Committee Report 1st House, Substituted
Implementing the provisions of the bill would result in a net
negative impact of $(9,000,000) to General Revenue Related Funds
through the biennium ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
The bill would authorize the Texas Higher Education Coordinating
Board to determine the need and interest for a Podiatry School
by August 31, 1998. If the Coordinating Board determines that
a need and interest exist, it would select a governing board
of a university system to establish and maintain a school for
the teaching and training of podiatry students, podiatry technicians
and other technicians in the practice of podiatry by September
1, 1998.
Methodolgy
This analysis assumes that the cost of the needs assessment
would be absorbed by the Coordinating Board. It also assumes
that a school of podiatry would be established and that it would
enroll 50 new Doctor of Podiatry students per year until it
reached a maximum enrollment of 200 students. A Doctor of Podiatry
degree requires four years of training: two years of basic medical
sciences and two years of clinical work. Total operating costs
are expected to be $11.7 million for the period from 2000 through
2002. It is assumed that the tuition and fees would be similar
to the tuition charged for the Doctor of Optometry program at
$7,500 per year. A portion of that income would be set aside
for Texas Public Education Grants and the remainder would be
used to offset the operating costs of the institution. The
first students would enroll at the beginning of fiscal 2000.
In addition to operating costs, the Texas Higher Education
Coordinating Board estimates that the new school would require
$9 million in renovation, construction and equipment expenditures
before students could be admitted.
Based on these assumptions,
$9 million is estimated for capital expenditures in fiscal year
1999. In 2000, first-year operating costs are estimated to
have a net impact on general revenue of $1.17 million. Operating
costs would increase in each successive year as new students
matriculate through the school until 2003, when the school would
reach enrollment capacity.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Change in Number
Savings/(Cost) of State
from General Employees from
Revenue Fund FY 1997
0001
1998 $0 0.0
1998 (9,000,000) 0.0
2000 (1,178,895) 12.0
2001 (3,231,130) 44.0
2002 (5,347,222) 92.0
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $0
1999 (9,000,000)
2000 (1,178,895)
2001 (3,231,130)
2002 (5,347,222)
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: Agencies:
LBB Staff: JK ,LP ,CF