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