LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                             February 5, 2001
  
  
          TO:  Honorable Jim Solis, Chair, House Committee on Economic
               Development
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB323  by Oliveira (Relating to establishing a center for
               border economic and enterprise development at The
               University of Texas at Brownsville.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB323, As Introduced:  negative impact of $(651,808) through the      *
*  biennium ending August 31, 2003.                                      *
*                                                                        *
*  The bill would make no appropriation but could provide the legal      *
*  basis for an appropriation of funds to implement the provisions of    *
*  the bill.                                                             *
**************************************************************************
  
The bill would establish the Center for Border Economic and Enterprise
Development at the University of Texas at Brownsville.
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                           $(325,904)  *
          *       2003                            (325,904)  *
          *       2004                            (325,904)  *
          *       2005                            (325,904)  *
          *       2006                            (325,904)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
***************************************************************************
*Fiscal    Probable Savings/(Cost) from     Change in Number of State     *
* Year         General Revenue Fund           Employees from FY 2001      *
*                      0001                                               *
*  2002                        $(325,904)                             5.0 *
*  2003                         (325,904)                             5.0 *
*  2004                         (325,904)                             5.0 *
*  2005                         (325,904)                             5.0 *
*  2006                         (325,904)                             5.0 *
***************************************************************************
  
Technology Impact
  
N/A
  
  
Fiscal Analysis
  
The agency requests funding to hire staff to conduct research, plan
conferences to address border needs,  and develop partnerships with
business and government entities.  If the center were successful, the
State of Texas may realize additional revenues.  However, it is assumed
that the additional revenues would be insignificant for the first five
years.
  
  
Methodology
  
Based on information provided by UT Brownsville, we estimate that staff,
including a Director ($75,000/year), an Assistant Director
($40,000/year), an Administrative Assistant ($25,000/year), a Secretary
($20,000/year) and a computer technician ($20,000/year) would be needed.
Travel of $15,000 and operating expenses of $80,000 are added.  In
addition the cost of benefits (28.28% of salaries) totals $50,904.
  
  
Local Government Impact
  
The purpose of the center would be to assist in the economic development
of the region.  If the center were successful, the local government may
realize additional revenues although the additional revenues would be
insignificant for the first five years.
  
  
Source Agencies:   480   Department of Economic Development, 781   Texas
                   Higher Education Coordinating Board, 720   The
                   University of Texas System
LBB Staff:         JK, JO, DC