LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 14, 1999
TO: Honorable Eddie Lucio, Chair, Senate Committee on Border
Affairs
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB 1660 by Shapleigh (Relating to the establishment and
operation of the Paso del Norte Regional Health
Institute), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1660, As Introduced: positive impact of $0 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. *
* *
* SB 2 currently has $50 million in tobacco settlement receipts *
* available in Article XII for this type of purpose. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $0 *
* 2001 0 *
* 2002 0 *
* 2003 0 *
* 2004 0 *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Change in Number of State *
* Year Permanent Funds (Tobacco) Employees from FY 1999 *
* Established for Institute *
* Members *
* 2000 $(296,560) 4.0 *
* 2001 (326,216) 5.0 *
* 2002 (358,838) 6.0 *
* 2003 (394,722) 6.0 *
* 2004 (434,194) 6.0 *
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Fiscal Analysis
The bill establishes the Paso del Norte Regional Health Institute
(Institute) in El Paso to deliver health care, provide health education,
and conduct research affecting public health in the border region. The
bill specifies the Institute's membership and administration, assigns the
Institute's governing board (board) responsibility for the Institute's
operation, financial activities, and any capital improvements, and
requires the Institute to prepare an annual audited financial report and
status report of each project for the board. The board may employ an
executive director and any other staff necessary for the operation of the
Institute. Funding for the Institute would come from legislative
appropriation and grants from the federal government, or any other public
or private entity.
The bill requires the Texas Higher Education Coordinating Board (THECB)
to prepare an impact statement examining the initial implementation of
the bill by January 1, 2001.
Methodology
This analysis assumes that the costs associated with the bill would be
funded from earnings of the permanent endowment funds established by
House Bill 1945. The Comptroller of Public Accounts has assumed that
money for the new funds would come from General Revenue Account 5040 -
Tobacco Settlement Temporary Hold, which holds payments to the state as a
result of the January 1998 tobacco lawsuit settlement. The fund
transfers would occur in fiscal year 1999.
This analysis assumes that expenses associated with the governing board,
and staff would be paid out of the earnings of the permanent endowment
funds established for The University of Texas at El Paso, Texas Tech
University Health Sciences Center and The University of Texas Health
Science Center at Houston and that the annual costs of the Institute
would not exceed the annual earnings of these funds.
Approximately $261,560 is estimated for hiring an executive director,
financial officer and support staff, and $35,000 is estimated for
operating costs, equipment and travel in fiscal year 2000. Beginning in
fiscal year 2001, total costs to the permanent endowment funds would
increase by 10 percent in each successive year.
The costs of preparing an impact statement on implementing the bill would
be absorbed in THECB's general operating expenses.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 739 Texas Tech University Health Sciences Center,
501 Department of Health, 720 The University of
Texas System Administration, 781 Higher Education
Coordinating Board
LBB Staff: JK, DE, LD, CF