LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 2, 1997
         
         
      TO: Honorable Irma Rangel, Chair            IN RE:  Senate Bill No. 1241, As Engrossed
          Committee on Higher Education                              By: Zaffirini
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB1241 ( Relating 
to the creation of the Faculty Enhancement Fund for Generalist 
Physicians.) this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB1241-As Engrossed
         
No significant fiscal implication to the State is anticipated.
         

         
 
The bill would make no appropriation but could provide the legal 
basis for an appropriation of funds to implement the provisions 
of the bill.

The Coordinating Board has assumed that if funds 
are appropriated, the Program could be administered with 10 
percent of the total appropriation in the first year and five 
percent of the total appropriation in subsequent years, as authorized 
in the bill.  The Board estimates that if $330,000 was appropriated 
in first year, the Program would cost $30,000 to administer 
and employ two part-time employees.  Operating costs exceeding 
the amount authorized in the bill would be absorbed by the agency. 
 It is also assumed that the medical schools would encumber 
additional faculty salary costs.  Once the two-year grant period 
had ended, the institution would assume the amount equal to 
the annualized faculty enhancement award.  
          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,LP ,RR ,CF