LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 22, 1997 TO: Honorable Irma Rangel, Chair IN RE: Senate Bill No. 606, As Engrossed Committee on Higher Education By: Lucio House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB606 ( 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 SB606-As Engrossed No significant fiscal implication to the State is anticipated, except to the extent that funds are specifically appropriated for debt service. Fiscal Analysis The bill would authorize the University of Texas System Board of Regents to establish and operate a Regional Academic Health Center (RAHC), serving Cameron, Hidalgo, Starr and Willacy counties. The RAHC would be managed by an undesignated University of Texas component institution. Operating costs of the RAHC would be paid from operating funds of the component institution and from funds of any other public or private entity. The RAHC would provide undergraduate clinical, postgraduate and residency training programs, or other levels of medical educational work. The bill would authorize a public or private entity to provide adequate physical facilities for use by the RAHC, including library, auditorium, research, and medical education buildings. Physical facilities may be constructed, maintained or operated with state funds. The bill would require that a teaching hospital be furnished and operated at no cost or expense to the state. Methodology Because the bill would require the RAHC to be funded with the operating budget and from available funds of another public or private entity, it is assumed that costs to the state for operations would be funded within current operations and funding available to other public or private entities. The bill would authorize the use of state funds for construction, maintenance or operations of facilities. Because no specific authority for issuance of tuition revenue bonds exists pursuant to Chapter 55 of the Texas Education Code, no costs for debt service is included. However, to the extent funds are specifically appropriated, or tuition revenue bonds authorized, there could be a fiscal impact to the state. 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