LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 8, 1997
TO: Honorable Bill Ratliff, Chair IN RE: Senate Bill No. 606, Committee Report 1st House, Substituted
Committee on Finance By: Lucio
Senate
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-Committee Report 1st House, Substituted
Implementing the provisions of the bill would result in a net
negative impact of $(12,800,000) 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 University of Texas System Board
of Regents to establish and operate a Regional Academic Health
Center (RAHC), serving Cameron, Hildalgo, Starr and Willacy
counties. The RAHC will be managed by an undesignated University
of Texas component health institution. The RAHC would provide
undergraduate clinical education, graduate education, including
residency training programs, or other levels of medical educational
work. The bill would authorize the Board or Regents to provide
adequate physical facilities for use by the RAHC, including
library, auditorium, research, and medical education buildings.
The facilities may be constructed with money from state appropriations
or tuition revenue bonds authorized under other law. A teaching
hospital may be provided by a public or private entity. The
hospital may not be constructed, maintained or operated with
state funds.
Methodolgy
This analysis assumes implementation with moderate costs and
maximum use of existing resources. The operating costs and
capital improvements are estimated to be $6.4 million annually.
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
Gain/(Loss) from
General Revenue
Fund
0001
1998 ($6,400,000)
1998 (6,400,000)
2000 (6,400,000)
2001 (6,400,000)
2002 (6,400,000)
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 ($6,400,000)
1999 (6,400,000)
2000 (6,400,000)
2001 (6,400,000)
2002 (6,400,000)
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 ,LD ,CF