LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session May 12, 1999 TO: Honorable Irma Rangel, Chair, House Committee on Higher Education FROM: John Keel, Director, Legislative Budget Board IN RE: SB1288 by Zaffirini (relating to the establishment and operation of a campus extension of The University of Texas Health Science Center at San Antonio), Committee Report 2nd House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1288, Committee Report 2nd House, Substituted: negative impact * * of $(1,400,000) 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. * ************************************************************************** As of May 12, 1999, Conference Committee had adopted $700,000 per year to fund the establishment of the Center. General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $(700,000) * * 2001 (700,000) * * 2002 (700,000) * * 2003 (700,000) * * 2004 (700,000) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Change in Number of State * * Year General Revenue Fund Employees from FY 1999 * * 0001 * * 2000 $(700,000) 4.0 * * 2001 (700,000) 5.0 * * 2002 (700,000) 5.0 * * 2003 (700,000) 5.0 * * 2004 (700,000) 5.0 * *************************************************************************** Technology Impact The extension may require an audio-visual connection to the main campus in San Antonio Fiscal Analysis The bill would establish a campus extension (extension) of the University of Texas Health Science Center at San Antonio (University) in the city of Laredo. The bill authorizes the extension under two conditions: public or private entities would offer sufficient land in Laredo to construct the extension and would fund the construction of the extension's administration building. It would authorize the University to accept and administer gifts and grants, including those of land and buildings for the use of the extension and authorizes the leasing of extension facilities for teaching and research programs. The University would manage the extension and would pay for the extension's operating costs from the University's operating funds, or from other available funds of any public or private entity. The extension would be used to provide undergraduate and graduate medical and dental education and other levels of health education in collaboration with Texas A&M International University and any other components of the Texas A&M University System or The University of Texas System. A teaching hospital for the extension may be provided by a public or private entity but may not be constructed, maintained or operated with state funds. Methodology This analysis assumes the conditions of establishing the extension have been met by public and private entities in Laredo. The University estimates $195,000 for 4 new employees in 2000 and $218,000 for 5 new employees in 2001. Operating costs include travel, employee benefits and program support resources and services and are estimated to be $505,000 in 2000 and $482,000 in 2001. The University has estimated that personnel and operating costs would continue at 2001 levels through 2004. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JK, CT, CF