LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              March 23, 1999
  
  
          TO:  Honorable Jane Nelson, Chair, Senate Committee on Health
               Services
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB632  by Madla (Relating to the long-range plan for the
               Texas Center for Infectious Disease and the provision of
               tuberculosis and other  health care and laboratory
               services.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB632, As Introduced:  negative impact of $(18,900,000) 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 Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2000                        $(18,900,000)  *
          *       2001                                    0  *
          *       2002                                    0  *
          *       2003                                    0  *
          *       2004                                    0  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2000                            $(18,900,000) *
         *      2001                                        0 *
         *      2002                                        0 *
         *      2003                                        0 *
         *      2004                                        0 *
         *****************************************************
  
Fiscal Analysis
  
The bill would require the Board of Health to contract for the renovation
of physical facilities of the Texas Center for Infectious Disease,
contract with the board of regents of the University of Texas System to
provide all tuberculosis and other services provided at the Texas Center
for Infectious Disease.  The board of regents of the University of Texas
System would be required to contract for the construction of physical
facilities for a tuberculosis research laboratory at the University of
Texas Health Science Center at San Antonio (UTHSCSA).  The bill would
authorize persons whose positions are eliminated due to program
transfers and contracts required by provisions in the bill certain
enhanced retirement benefits, under certain circumstances.
  
  
Methodology
  
It is assumed that the transfer of Tuberculosis Research to the
University of Texas Health Science Center at San Antonio would result in
no new net costs or Full-Time Equivalent positions to the state.  The
resources to be transferred from the Department of Health to UTHSCSA are
assumed to be $239,214 per fiscal year in General Revenue and $1,024,585
in Federal Funds and 18 Full-Time Equivalent positions.

Costs to renovate physical facilities to provide tuberculosis and other
health care services are assumed by the Department of Health to total
$14.4 million in General Revenue in 2000.

Costs to construct a new research lab are assumed by the University of
Texas System to be $4.5 million in General Revenue in 2000.

According to the Employees Retirement System (ERS), the bill would allow
ERS to remain actuarially sound based on the current contribution rates
for the next biennium.  Therefore, no additional state contributions for
retirement would be necessary.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   
LBB Staff:         JK, TP, KF