LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
March 17, 1999
TO: Honorable Irma Rangel, Chair, House Committee on Higher
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2025 by Pickett (relating to the establishment and
operation of the Border Health Institute), Committee
Report 1st House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2025, Committee Report 1st House, Substituted: positive impact *
* of $0 through the biennium ending August 31, 2001. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
* *
* HB 1 currently has $50 million tobacco settlement receipts *
* available in Article XII for this type of purpose. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $0 *
* 2001 0 *
* 2002 0 *
* 2003 0 *
* 2004 0 *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Revenue Gain/(Loss) Change in Number of State *
* Year from Permanent Funds (Tobacco) Employees from FY 1999 *
* Established for Institute *
* Members *
* 2000 $(296,560) 4.0 *
* 2001 (326,216) 5.0 *
* 2002 (358,838) 6.0 *
* 2003 (394,722) 6.0 *
* 2004 (434,194) 6.0 *
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Technology Impact
None
Fiscal Analysis
The bill establishes a Border Health Institute (Institute) in El Paso to
deliver health care, provide health education, and conduct research
affecting public health in the border region. The bill specifies the
Institute's membership and administration, assigns the Institute's
governing board (board) responsibility for the Institute's operation,
financial activities, and any capital improvements, and requires the
Institute to prepare an annual audited financial report and status report
of each project for the board. The board may employ an executive
director and any other staff necessary for the operation of the
Institute. Funding for the Institute would come from legislative
appropriation and grants from the federal government, or any other public
or private entity.
The bill requires the Texas Higher Education Coordinating Board (THECB)
to prepare an impact statement examining the initial implementation of
this bill by January 1, 2001.
Methodology
This analysis assumes that the costs associated with this bill would be
funded from earnings of the permanent endowment funds established by HB
1945. The Comptroller of Public Accounts has assumed that money for the
new funds would come from General Revenue Account 5040 - Tobacco
Settlement Temporary Hold, which holds payments to the state as a result
of the January 1998 tobacco lawsuit settlement. The fund transfers would
occur in fiscal year 1999.
This analysis assumes that expenses associated with the governing board,
and staff would be paid out of the earnings of the permanent endowment
funds established for the University of Texas at El Paso, the Texas Tech
University Health Science Center and the University of Texas Health
Science Center-Houston and that the annual costs of the Institute would
not exceed the annual earnings of these funds.
Approximately $261,560 is estimated for hiring an executive director,
financial officer and support staff, and $35,000 is estimated for
operating costs, equipment and travel in fiscal year 2000. Beginning in
fiscal year 2001, total costs to the permanent endowment funds would
increase by 10 percent in each successive year.
The costs of preparing an impact statement on implementing the bill would
be absorbed in THECB's general operating expenses.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies:
LBB Staff: JK, CT, LD, CF