LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 6, 2001 TO: Honorable Teel Bivins, Chair, Senate Committee on Education FROM: John Keel, Director, Legislative Budget Board IN RE: SB728 by Van de Putte (Relating to the establishment and operation of the San Antonio Life Sciences Institute in The University of Texas System.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB728, As Introduced: negative impact of $(10,727,866) 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 establishes the San Antonio Life Science Institute as a joint partnership between the University of Texas Health Science Center at San Antonio (UTHSCSA) and The University of Texas at San Antonio (UTSA). The Institute would develop joint degree and research programs and will specialize in research and teaching in the life sciences. The cost of the operation and management of the institute is may be paid by state appropriations and from other public or private sources. General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $(4,187,076) * * 2003 (6,540,790) * * 2004 (6,540,790) * * 2005 (6,540,790) * * 2006 (6,540,790) * **************************************************** All Funds, Five-Year Impact: ************************************************************************** *Fiscal Probable Probable Revenue Change in Number of * * Year Savings/(Cost) from Gain/(Loss) from State Employees from * * General Revenue Fund General Revenue Fund FY 2001 * * 0001 0001 * * 2002 $(4,187,076) $0 21.0 * * 2003 (6,806,340) 265,550 33.0 * * 2004 (6,806,340) 265,550 39.0 * * 2005 (6,806,340) 265,550 42.0 * * 2006 (6,806,340) 265,550 42.0 * ************************************************************************** Technology Impact N/A Fiscal Analysis New General Revenue costs to initiate and operate the proposed programs for the 2002-03 biennium include $4.2 million in fiscal year 2002 ($1,730,196 for personnel and $2,456,880 for operating expenses) and $6.8 million in fiscal year 2003 ($4,198,460 for personnel and $2,607,880 for operating expenses). In addition, UTSA and UTHSCSA estimate $265,550 in tuition and fees will be generated annually beginning in fiscal year 2003. After the 2002-03 biennium, it is estimated that the program will be funded at the fiscal year 2003 level, and will remain a special item. However, if the program attracts new students who were not previously UTSA or UTHSCSA students, the additional semester credit hours generated by those new students would result in additional formula funding for the program. Methodology The budget for the San Antonio Life Sciences Institute is based on the development and implementation of five programs. The budget also includes faculty recruitment and curricula planning for the new degree programs. Beginning in fiscal year 2002, it is expected that a director, ten faculty and ten staff positions will be added. In fiscal year 2003, an additional eleven faculty and one staff will be added. In fiscal year 2004 an additional six faculty will be added. In fiscal year 2005 an additional three faculty are added to complete the Institute's complement. It is expected by fiscal year 2003, there will be 130 students enrolled in the five programs. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 720 The University of Texas System, 781 Texas Higher Education Coordinating Board LBB Staff: JK, CT, DC