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: SB931 by Madla (Relating to the support of graduate pharmacy education and resident pharmacists.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB931, As Introduced: negative impact of $(1,275,000) 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 $(212,500) * * 2001 (1,062,500) * * 2002 (1,062,500) * * 2003 (1,062,500) * * 2004 (1,062,500) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Probable Probable Change in * * Year Revenue Revenue Revenue Number of State * * Gain/(Loss) Gain/(Loss) Gain/(Loss) Employees from * * from Pharmacy from General from General FY 1999 * * Board Operating Revenue Fund Revenue Fund * * Account/ 0001 0001 * * GR-Dedicated * * 0523 * * 2000 $(850,000) $850,000 $(1,062,500) 7.5 * * 2001 0 0 (1,062,500) 7.5 * * 2002 0 0 (1,062,500) 7.5 * * 2003 0 0 (1,062,500) 7.5 * * 2004 0 0 (1,062,500) 7.5 * *************************************************************************** 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 40 residents at $9,562 per resident. Ten percent of the total amount also would fund .5 preceptors. 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 at an estimated salary of $85,000 per preceptor. The cost to the program would be the transferred amount plus the salaries for 7.5 preceptors. 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. The Board assumes that administrative costs of the program and travel costs of the advisory committee would be absorbed by the agency. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JK, TP, LD, CF