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