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