LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 17, 1997
         
         
      TO: Honorable Bill Ratliff, Chair            IN RE:  Senate Bill No. 1241
          Committee on Finance                              By: Zaffirini
          Senate
          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 Introduced
         
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 Texas Higher Education Coordinating Board 
has assumed that if funds are appropriated, the Program could 
be administered with 10 percent of the total appropriation as 
authorized in the bill.  The Board estimates that if $330,000 
was appropriated each fiscal year, the Program would cost approximately 
$30,000 to administer and employ two part-time employees.  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:   781   Higher Education Coordinating Board
                                         304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,RR ,CF