LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session April 28, 1999 TO: Honorable Teel Bivins, Chair, Senate Committee on Education FROM: John Keel, Director, Legislative Budget Board IN RE: SB590 by Truan (relating to the establishment of The Texas A&M University System Coastal Bend Health Education Center), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB590, Committee Report 1st House, Substituted: negative impact * * of $(19,072,000) 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. * ************************************************************************** General Revenue-Related Funds, Five-Year Net Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $(9,455,000) * * 2001 (9,617,000) * * 2002 (8,915,000) * * 2003 (8,915,000) * * 2004 (8,915,000) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Revenue Gain/(Loss) Change in Number of State * * Year from General Revenue Fund Employees from FY 1999 * * 0001 * * 2000 $(9,455,000) 33.0 * * 2001 (9,617,000) 33.0 * * 2002 (8,915,000) 33.0 * * 2003 (8,915,000) 33.0 * * 2004 (8,915,000) 33.0 * *************************************************************************** Technology Impact The new sites would require telecommunications and computing capabilities to facilitate telemedicine, distance learning, and research data collection and maintenance. Costs associated with the purchase of capital equipment and its operation are included in the cost estimates. Fiscal Analysis The bill would establish the Texas A&M University System Coastal Bend Health Education Center (Center). The Center would develop and provide community-based instructional sites for undergraduate clinical education, graduate education and other levels of health care education in the Coastal Bend area. The Center may use community outreach programs and conduct research in providing these educational programs. It may operate educational facilities and enter in affiliation or coordination agreements with other educational entities or institutions in the region to establish and operate the Center. The Texas A&M University System Health Science Center (TAMUSHSC) would manage the Center and would pay for its operating costs from the institution's operating funds, or from other available funds of any participating institution or other public or private entities. Methodology This analysis is based upon a cost estimate done by TAMUHSC, which assumes that teaching sites would be established in Corpus Christi, Kingsville and College Station. The teaching sites would require a total of 25,000 square feet of leased or rented space at a cost of $300,000 per year. TAMUHSC estimated that personnel, equipment, instructional, and other operating costs would total $9,155,000 in 2000, $9,317,000 in 2001, and $8,615,000 per year subsequent. Of those annual totals, TAMUHSC estimates personnel costs for each year to be $2,470,000 for 33 additional staff: one center director, one library director, eight support staff, and 23 faculty members. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 781 Higher Education Coordinating Board, 710 A&M University System Texas LBB Staff: JK, CT, BB, CF, DB