Honorable Dennis Bonnen, Speaker of the House, House of Representatives
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
HB1065 by Ashby (Relating to the establishment of a rural resident physician grant program.), As Passed 2nd House
Estimated Two-year Net Impact to General Revenue Related Funds for HB1065, As Passed 2nd House: a negative impact of ($1,123,494) through the biennium ending August 31, 2021.
The Texas Higher Education Coordinating Board is required to provide grants as provided by this Act only if the legislature appropriates money specifically for that purpose. If the legislature does not appropriate money specifically for that purpose, the board may, but is not required to, provide grants as provided by this Act using other appropriations available for that purpose.
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2020
($583,549)
2021
($539,945)
2022
($547,445)
2023
($539,945)
2024
($547,445)
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
2020
($583,549)
2021
($539,945)
2022
($547,445)
2023
($539,945)
2024
($547,445)
Fiscal Year
Change in Number of State Employees from FY 2019
2020
1.0
2021
0.5
2022
0.5
2023
0.5
2024
0.5
Fiscal Analysis
The bill would require the Texas Higher Education Coordinating Board (THECB) to establish and administer the Rural Resident Physician Grant Program as a competitive grant program to encourage the creation of new graduate medical education positions in rural and nonmetropolitan areas. The bill would require THECB to award grants to new or expanded physician residency programs at teaching hospitals and other appropriate health care entities as defined in the provisions of the bill. The bill would require THECB to establish criteria for the grant program in consultation with one or more physicians.
Under the provisions of the bill, all grant funds awarded under the program could only be used to pay direct costs associated with creating or maintaining a residency position, including the salary of the resident physician. The bill would require THECB to monitor the physician residency program receiving a grant to ensure compliance with the grant program. For any residency program that fails to comply with the rules of the grant program, the bill would require the return of any unused grant money by a residency program or for THECB to decline additional grants to that program.
The bill would require the Board to establish the grant program no later than October 1, 2019, and to begin to award grants under the program no later than January 1, 2020.
Methodology
Based on information provided by THECB regarding similar grant programs for graduate medical education, it is assumed that beginning in fiscal year 2020, the agency would award two grants, at $250,000 per grant, to support operational and financial planning, accreditation, and infrastructure needs for the new graduate medical education programs. It is assumed that once the programs are operational, future residency costs would be supported by the Graduate Medical Education Expansion Program administered by the agency.
Costs associated with this grant program are scalable and could vary from this estimate depending on the total number of awards provided and the value of each award.
Based on information provided by THECB, administrative costs associated with the new program, including salaries, wages, benefits, and other expenses, are estimated to range from $83,549 in fiscal year 2020 to $47,445 in fiscal year 2023.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration, 758 Texas State University System, 768 Texas Tech University System Administration, 769 University of North Texas System Administration, 781 Higher Education Coordinating Board, 783 University of Houston System Administration