LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 8, 2001
TO: Honorable Irma Rangel, Chair, House Committee on Higher
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1211 by Garcia (Relating to the establishment of a
school of pharmacy at the University of North Texas.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1211, As Introduced: negative impact of $(5,195,386) 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 requires the board of regents at the University of North Texas
to establish and maintain a school of pharmacy in Dallas. The board may
offer courses leading to degrees in pharmacy education and award those
degrees. If the University of North Texas maintains a campus in Dallas,
the school of pharmacy will be located at that campus.
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(2,772,693) *
* 2003 (2,422,693) *
* 2004 (4,422,693) *
* 2005 (4,672,693) *
* 2006 (7,078,763) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* General Revenue Fund *
* 0001 *
* 2002 $(2,772,693) *
* 2003 (2,422,693) *
* 2004 (4,422,693) *
* 2005 (4,672,693) *
* 2006 (7,078,763) *
*****************************************************
Fiscal Analysis
The estimated cost of this bill is $5,195,386 to the General Revenue Fund
in the 2002-03 biennium.
Methodology
Based on analysis prepared by the Texas Higher Education Coordinating
Board (THECB), it is assumed that the school will require the
construction of a new building located in Dallas with land already
purchased by the University of North Texas and financed by tuition
revenue bonds.
THECB estimates that construction of a 112,895 square foot pharmacy
building would cost $28 million in tuition revenue bonds and be completed
and ready for occupancy in May 2005. Debt service of $2,422,693 per
year, beginning in fiscal year 2002, would be based on an assumed bond
rate of six percent per year for 20 years. Operation and maintenance
costs of $250,000 are included in the estimate of special item funding
for fiscal year 2005.
All other estimates of the number of full-time employees and of the costs
of personnel, equipment, instruction, and other operating expenses
mirror the program development, timeline, and appropriation and
expenditure histories of the college of pharmacy at Texas Tech University
Health Science Center at Amarillo (TTUHSC-A).
It is assumed that the university would initially receive $350,000 from
the Legislature for the 2002-03 biennium to begin the curriculum design
and accreditation process. The start-up funds also would allow the
university to hire a pharmacy educator to assist with curriculum and
accreditation efforts and to help recruit a dean. In fall 2005, four
years after the initial appropriation, additional funds would need to be
appropriated to hire faculty and staff, partially equip the building and
enroll the first class of 65 Pharm.D. students. Based on this timeline,
the school would be eligible for formula funding for instruction and
infrastructure beginning in fiscal year 2006. Using the TTUHSC-A model,
the University of North Texas would continue to receive special item
funding for the college of pharmacy through fiscal year 2009.
The estimated special item and formula funding costs (excluding debt
service) are $350,000 with unexpended budget authority for the 2002-03
biennium, $2,000,000 in special item funding for 2004, $2,250,000 in
special item funding for 2005, and $4,656,070 ($3,500,000 in special item
funding, $1,156,070 in formula funding) for fiscal year 2006.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 781 Texas Higher Education Coordinating Board, 752
University of North Texas
LBB Staff: JK, CT, DB, HM