LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
January 30, 2001
TO: Honorable Frank Madla, Chair, Senate Committee on
Intergovernmental Relations
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB126 by Madla (Relating to the creation and funding of
the Rural Communities Health Care Investment Program to
attract and retain rural health care professionals.),
Committee Report 1st House, as amended
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB126, Committee Report 1st House, as amended: positive impact of *
* $0 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 $0 *
* 2003 0 *
* 2004 0 *
* 2005 0 *
* 2006 0 *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Revenue Change in Number of *
* Year Savings/(Cost) from Gain/(Loss) from State Employees from *
* Rural Communities Rural Communities FY 2001 *
* Health Care Health Care *
* Investment Program Investment Program *
* Trust Fund Trust Fund *
* 2002 $(300,000) $300,000 0.8 *
* 2003 (400,000) 400,000 1.0 *
* 2004 (400,000) 400,000 1.0 *
* 2005 (400,000) 400,000 1.0 *
* 2006 (400,000) 400,000 1.0 *
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Fiscal Analysis
The bill would amend Chapter 106 of the Health and Safety Code to create
and fund the Rural Communities Health Care Investment Program to attract
and retain rural health care professionals. The bill would also create
the Rural Communities Health Care Investment Program Trust Fund with the
state comptroller which would be administered by the Center for Rural
Health Initiatives (CRHI). The bill would require immediate
implementation of the program if a vote of two-thirds of all members in
each house is received. Otherwise, the bill would set an effective date
of September 1, 2001.
Methodology
The bill would establish the Loan Reimbursement Program under the CRHI to
provide loan reimbursement for health professionals who agree to
practice in medically underserved communities. The bill would also
establish the Stipend Program under CRHI to provide a stipend to health
professionals who agree to serve in medically underserved communities.
The health professional would sign a contract with CRHI for the loan
reimbursement or stipend. According to CRHI, one full-time equivalent
(FTE) would be required to implement and administer these programs. This
analysis assumes the effective date of September 1, 2001; therefore,
salary for the one FTE is calculated at three-fourths of the fiscal year
2002 to allow for start-up of the program. Total salary for one FTE is
$66,451 for the 2002-03 biennium. Other operating costs, including
travel, rent, and employee benefits, are also calculated at three-fourths
of the total costs in fiscal year 2002 and total $36,117 for the
biennium. Equipment costs are estimated at $3,000 in fiscal year 2002
only.
Revenues to the Rural Communities Health Care Investment Program Trust
Fund would be derived from public and private gifts and grants. CRHI
estimated the trust fund would receive $0.5 million in revenue each year.
It is assumed that the trust fund would only receive $300,000 in revenue
in fiscal year 2002 because of start-up and $400,000 per year in
subsequent years. The revenue estimate is based upon 100 communities
contributing $4000 per community. Total revenues and expenditures are
estimated to be $700,000 for the 2002-03 biennium.
The bill would create an advisory committee or panel to assist in the
center's duties related to the Rural Communities Health Care Investment
Program. Reimbursement for travel and related expenses would have to be
authorized in the General Appropriations Act.
Local Government Impact
No fiscal implication to units of local government is anticipated.
However, the bill states the Center may encourage a medically
underserved community served by a program recipient to contribute to the
cost of the loan reimbursement or stipend, if feasible.
Source Agencies: 50A Center for Rural Health Initiatives, 304
Comptroller of Public Accounts, 781 Texas Higher
Education Coordinating Board
LBB Staff: JK, DB, KF, RM