LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 8, 1997
TO: Honorable Irma Rangel, Chair IN RE: House Bill No. 2809
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 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-As Introduced
Implementing the provisions of the bill would result in a net
negative impact of $(10,178,895) 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 board of regents of the Texas A&M
University System, the University of North Texas and Texas Tech
University to establish and maintain a school for the teaching
and training of podiatry students, podiatry technicians and
other technicians in the practice of podiatry.
Methodolgy
This analysis assumes that one school of podiatry would be established
and that it would enroll 50 new 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 $19.7 million for the period
from 1999 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
1999.
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 1998. In 1999, 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 2002, 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 Revenue Change in Number
Gain/(Loss) from of State
General Revenue Employees from
Fund FY 1997
0001
1998 ($9,000,000) 0.0
1998 (1,178,895) 12.0
2000 (3,231,130) 44.0
2001 (5,347,222) 92.0
2002 (6,770,276) 114.0
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 ($9,000,000)
1999 (1,178,895)
2000 (3,231,130)
2001 (5,347,222)
2002 (6,770,276)
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: 710 Texas A&M University System
739 Texas Tech University Health Sciences Center
733 Texas Tech University
781 Higher Education Coordinating Board
LBB Staff: JK ,LP ,CF