| TO: | Honorable Geanie Morrison, Chair, House Committee on Higher Education |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | SB365 by Nelson (Relating to the creation and implementation of the health professional education grant program.), As Engrossed |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2008 | $0 |
| 2009 | ($3,743,663) |
| 2010 | ($3,751,163) |
| 2011 | ($3,743,663) |
| 2012 | ($3,743,663) |
| Fiscal Year | Probable Savings/(Cost) from GENERAL REVENUE FUND 1 |
|---|---|
| 2008 | $0 |
| 2009 | ($3,743,663) |
| 2010 | ($3,751,163) |
| 2011 | ($3,743,663) |
| 2012 | ($3,743,663) |
| Fiscal Year | Change in Number of State Employees from FY 2007 |
|---|---|
| 2008 | 0.0 |
| 2009 | 1.5 |
| 2010 | 1.5 |
| 2011 | 1.5 |
| 2012 | 1.5 |
The bill would create the Health Professional Education Grant Program. Under provisions of the bill, the Higher Education Coordinating Board may award health professional education grants to eligible health professional education programs at institutions of higher education in this state, assist the programs in providing new distance learning or community-based education projects or activities, expanding or enhancing existing distance learning or community-based education projects or activities; and fund other related activities. The Board could not award a grant under this section to replace current funding for an existing distance learning or community-based education project or activity. The Higher Education Coordinating Board would begin awarding grants with the 2008-2009 academic year or fiscal year 2009.
The following represents the estimated number of programs under each eligible professional education program based on the current definitions included in the bill and others refined by the Higher Education Coordinating Board:
414 - accredited physician resident training programs;
77 - accredited primary care physician resident training programs;
108-vocational nurse programs;
85-initial registered nurse programs;
17 - advanced nurse practitioner programs;
9 - physician assistant programs;
580 - public accredited undergraduate or graduate allied health programs that support direct patient care; and
390 - public accredited undergraduate or graduate allied health programs that support high-demand (predicted annual occupational growth rates of 30 percent or higher) programs in professions with direct patient care responsibilities.
In calculating the cost of funding an adequate number institutions under the program, the Higher Education Coordinating Board assumed that five percent of grant applicants would be funded and two-year grant awards would average $120,000. The grant funds would be distributed evenly across the two-year grant period. Assuming the accredited physician resident training programs, advanced nurse practitioner programs, physician assistant programs and public accredited undergraduate or graduate allied health programs were funded ((414+17+108+85+9+580) X .05), the number of two-year grants would be 61. Multiplying the annual grants (61) X the funding per grant ($120,000) = $7.32 million (or $3.66 million per year).
If the eligibility was limited to primary care physician residency training programs (77), advanced nurse practitioner programs (17), vocational nurse programs (108), initial registered nurse programs (85), physician assistant programs (9), and high-demand direct patient care allied health programs (390), the number of grants would decrease to 34 and the funding per year would $2.04 million per year.
The Coordinating Board has indicated they would need to add one and one-half full-time equivalent position (1.5 FTE) to administer this program. A Program Director would be needed to prepare the Request for Proposal, coordinate the grant application and review process, monitor the progress of grants, travel to visit the institutions (in the second year of the grant cycle) and prepare the report to the legislature and Governor. An additional one-half (.50 FTE) Administrative Technician III will be needed for clerical support. The personnel cost for salaries and benefits is estimated at $83,663 per year with travel of $7,500 (visiting half of the institutions with grants (30) X $250) every other year.
| Source Agencies: | 781 Higher Education Coordinating Board
|
| LBB Staff: | JOB, JSp, MN, RT, GO
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