LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 18, 2001
TO: Honorable Teel Bivins, Chair, Senate Committee on
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB940 by Bivins (Relating to the establishment of the
Joint Admission Medical Program to assist certain
economically disadvantaged students in preparing for and
succeeding in medical school.), Committee Report 1st
House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB940, Committee Report 1st House, Substituted: negative impact *
* of $(4,174,000) 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 $(1,050,000) *
* 2003 (3,124,000) *
* 2004 (4,148,000) *
* 2005 (5,172,000) *
* 2006 (6,196,000) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* General Revenue Fund *
* 0001 *
* 2002 $(1,050,000) *
* 2003 (3,124,000) *
* 2004 (4,148,000) *
* 2005 (5,172,000) *
* 2006 (6,196,000) *
*****************************************************
Fiscal Analysis
The bill establishes the Joint Admission Medical Program to assist
certain economically disadvantaged students in preparing for and
succeeding in medical school. The program would be administered by a
council consisting of one faculty member from each medical school. The
program would recruit eligible undergraduate students, award
undergraduate and graduate scholarships, award summer stipends, and
guarantee the admission of those students to at least one participating
medical school.
The council may delegate its administrative functions to The University
of Texas System.
Methodology
This cost estimate is based on the participation of the seven public
Texas medical schools plus the Baylor College of Medicine, as specified
in the bill, and 31 general academic institutions. For fiscal year 2002,
the program is assumed to begin mid-year and therefore costs are fifty
percent of the annual cost. The program costs are annualized in the
second year of the program. Administrative costs are estimated to be
$150,000 per year beginning in the second year, with the first year's
cost being $75,000 for six months.
For fiscal year 2002, the Coordinating Board assumes costs of $200,000
for medical school advising at the eight participating medical schools.
This cost is annualized to $400,000 in the second year of the program.
The cost is calculated based on a full year's cost of $50,000 for each of
the eight medical schools.
It is assumed that costs for undergraduate counseling at the 31 general
academic institutions would be $775,000 in the first year, annualized to
$1,550,000 in the second year of the program. This is based on a cost of
$50,000 per institution.
In the second year of the program, new program costs are added for
implementation of the summer internship program and an undergraduate
scholarship program. Each program is estimated to cost $512,000
annually.
It is assumed that program expansion and increased participation would
generate additional costs of $1,024,000 per year beginning in the third
year of the program.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 781 Texas Higher Education Coordinating Board
LBB Staff: JK, CT, MG