LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 16, 1999
TO: Honorable Teel Bivins, Chair, Senate Committee on
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), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1288, As Introduced: negative impact of $(16,000,000) 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. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(8,000,000) *
* 2001 (8,000,000) *
* 2002 (8,000,000) *
* 2003 (8,000,000) *
* 2004 (8,000,000) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Change in Number of State *
* Year General Revenue Fund Employees from FY 1999 *
* 0001 *
* 2000 $(8,000,000) 14.0 *
* 2001 (8,000,000) 60.0 *
* 2002 (8,000,000) 85.0 *
* 2003 (8,000,000) 85.0 *
* 2004 (8,000,000) 85.0 *
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Technology Impact
The extension center 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. The University of Texas System
board of regents (Board) shall report to the Texas Higher Education
Coordinating Board (THECB) if the conditions have been satisfied by
December 1, 1999.
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 or any component institutions of the
Texas A&M University System or The University of Texas System.
The physical facilities used for teaching and research may be provided by
a public or private entity. A facility may be constructed, maintained
or operated with state money appropriated for that purpose. A teaching
hospital may also be provided by a public or private entity and
constructed, or maintained with state funds.
THECB will prepare an impact statement for the Board by January 1. 2000.
Methodology
This analysis assumes the conditions of establishing the extension have
been met by public and private entities in Laredo.
The University has assumed that construction of teaching and research
facilities would be $12 million, $8 million from general revenue and $4
million from gifts. It has estimated construction costs of $7 million in
2000 and $1 million in 2001. The University has estimated $686,000 for
14 new employees in 2000 and $3 million for 60 new employees in 2001.
Operating costs include travel, employee benefits and program support
resources and services and are estimated to be $314,000 in 2000 and $4
million in 2001. The University has estimated that personnel and
operating costs would continue to increase through 2004 and new FTEs
would cap at 85 in 2002 for the five-year period.
Costs associated with the construction and operation of a teaching
hospital were not included in the University's estimate.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 781 Higher Education Coordinating Board, 720 The
University of Texas System Administration
LBB Staff: JK, CT