LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
Revision 1
April 8, 1999
TO: Honorable Irma Rangel, Chair, House Committee on Higher
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2528 by Van de Putte (Relating to the support of
graduate pharmacy education and resident pharmacists), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2528, As Introduced: 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. *
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General Revenue-Related Funds, Five-Year Net Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $425,000 *
* 2001 (425,000) *
* 2002 (425,000) *
* 2003 (425,000) *
* 2004 (425,000) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Revenue Probable Revenue Probable *
* Year Gain/(Loss) from Gain/(Loss) from Savings/(Cost) from *
* Pharmacy Board General Revenue Fund General Revenue Fund *
* Operating Account/ 0001 0001 *
* GR-Dedicated *
* 0523 *
* 2000 $(850,000) $850,000 $(425,000) *
* 2001 0 0 (425,000) *
* 2002 0 0 (425,000) *
* 2003 0 0 (425,000) *
* 2004 0 0 (425,000) *
**************************************************************************
Fiscal Analysis
The bill would establish a residency program for pharmacists to be
administered by the Coordinating Board (Board). It authorizes the
Comptroller to transfer $850,000 from the State Board of Pharmacy's fund
account to the undedicated portion of the General Revenue Fund and allows
the Legislature to use these funds to establish the pharmacy program.
The Board would use the appropriation to provide grants to pharmacy
schools in amounts not to exceed $10,000 per resident position. The
schools would use the grants to compensate each qualified resident. A
pharmacy school would be eligible to receive these funds for a resident
in any year only if the school and the training site (pharmacy) each
contribute at least $10,000 toward the compensation of each resident
position for the year. The bill also restricts the number of compensated
residents in each year to 50 percent of the total number of persons in
the preceding year's graduating classes.
The bill establishes an advisory committee to make recommendations to the
Board on the allocation of funds among the schools. It also permits the
schools to apply and receive grants to support faculty preceptors who
would supervise the residencies. The Board may use not more than 10
percent of the total amount appropriated for the program to fund
preceptor positions.
Methodology
This analysis is based on a cost estimate from the Board which assumes
that the residencies would be funded in 2000 and 2001 from the amount
transferred from the State Pharmacy Board's general revenue dedicated
account. The Comptroller states that there are not certification costs
in the transfer of the funds.
The Board estimates that the $850,000 would compensate 42 residents per
year at $9,613 per resident with the remainder of the funds to cover the
Board's administrative and travel costs. The Board assumes a
student-to-faculty ratio of 5 to 1 and that 8 preceptors would be
required at the schools to monitor the residencies. The pharmacy schools
have assumed that those responsibilities would be absorbed by existing
personnel.
For subsequent years, the Board has assumed that the appropriation
transfer from the State Pharmacy Board dedicated account would apply
only to 2000 and 2001 and that the Legislature would appropriate money
for the residency program from the General Revenue Fund at the 2000-01
level.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
LBB Staff: JK, CT