LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
February 12, 2001
TO: Honorable Irma Rangel, Chair, House Committee on Higher
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB910 by Gutierrez (Relating to the establishment of The
Texas A&M University System Health Science Center South
Texas Center for Rural Public Health.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB910, As Introduced: negative impact of $(5,278,722) 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. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(1,889,361) *
* 2003 (3,389,361) *
* 2004 (3,389,361) *
* 2005 (3,389,361) *
* 2006 (3,389,361) *
****************************************************
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 2001 *
* 0001 *
* 2002 $(1,889,361) 25.0 *
* 2003 (3,389,361) 25.0 *
* 2004 (3,389,361) 25.0 *
* 2005 (3,389,361) 25.0 *
* 2006 (3,389,361) 25.0 *
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Fiscal Analysis
This bill establishes the Texas A&M University System Health Science
Center (TAMU HSC) South Texas Center for Rural Public Health (Center).
The Center would develop and provide community-based instructional sites
for the education of public health professionals; provide health
education outreach programs; conduct research programs related to
education or outreach provided by the Center; and conduct research
related to local public health issues.
The bill requires the Texas Higher Education Coordinating Board to
prepare an impact statement examining the initial implementation of this
bill by August 31, 2002.
Methodology
This analysis assumes that the Center would require the construction of a
new building for a facility to be built on land donated by the City of
McAllen, as stated in TAMU HSC's exceptional item request from their
2002-03 Legislative Appropriations Request (LAR). The Higher Education
Coordinating Board estimates that construction of a required 20,000 sq.
ft. building would be financed with tuition revenue bonds estimated at
$4.5 million, with debt service beginning in fiscal year 2002 estimated
at $389,361 per year based on a six percent interest rate, a 20 year loan
term, and payments made semi-annually. Construction is estimated to be
complete in March 2003, with the Center beginning operations at that
time.
TAMU HSC has also included an exceptional item request in their LAR for
25.0 full-time employee salaries, and operating costs totaling $3,000,000
per year. This analysis includes those costs and assumes that the first
year of operations would be $1,500,000 for six months, based on the
Center beginning operations in March 2003.
The costs of preparing an impact statement on implementing this bill
would be absorbed by the Coordinating Board.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
According to TAMU HSC's Legislative Appropriations Request, the Center is
eligible to receive $1.2 million in direct and in-kind support from the
City of McAllen for land to build the Center and for general support.
Source Agencies: 781 Texas Higher Education Coordinating Board
LBB Staff: JK, CT, MG, DB