Page 1 April 4, 2022 SB 22-172 Legislative Council Staff Nonpartisan Services for Colorado’s Legislature Fiscal Note Drafting Number: Prime Sponsors: LLS 22-0909 Sen. Winter; Rankin Rep. Roberts; Rich Date: Bill Status: Fiscal Analyst: April 4, 2022 Senate HHS Josh Abram | 303-866-3561 Josh.Abram@state.co.us Bill Topic: COLORADO RURAL HEALTH -CARE WORKFORCE INITIATIVE Summary of Fiscal Impact: ☐ State Revenue ☒ State Expenditure ☐ State Transfer ☐ TABOR Refund ☐ Local Government ☐ Statutory Public Entity The bill establishes the Colorado Rural Health-Care Workforce Initiative to expand the number of health-care professionals practicing in rural or frontier counties. The bill increases state expenditures beginning FY 2022-23 Appropriation Summary: For FY 2022-23, the bill requires appropriations totaling $4,950,000 to multiple institutions of higher education. Fiscal Note Status: The fiscal note reflects the introduced bill. Table 1 State Fiscal Impacts Under SB 22-172 Budget Year FY 2022-23 Out Year FY 2023-24 Revenue - - Expenditures General Fund $4,950,000 $150,000 Transfers - - Other Budget Impacts General Fund Reserve $742,500 $22,500 Page 2 April 4, 2022 SB 22-172 Summary of Legislation The bill establishes the Colorado Rural Health-Care Workforce Initiative to expand the number of health-care professionals practicing in rural or frontier counties. The bill permits an institution of higher education to establish a health-care professional rural track, or expand an existing rural track, within specified health care degree programs at the schools. The bill specifies required components of a rural track program, including outreach campaigns, scholarships, didactic curriculum, and clinical experience. Institutions may use funding for faculty compensation, housing costs for participating students, training preceptors who practice in rural counties, and student scholarships. Students receiving a scholarship must commit to working as a health-care provider in rural areas for two years after completing their credential. Schools receiving funding must report how the school intends to use the funding to establish or expand a rural track to the Rural Program Office (the office) at the University of Colorado Health Sciences Center . The office must provide assistance to the institutions with recruitment, admissions, housing support, clinical instruction, and other technical or administrative needs of operating a rural track. The office must establish metrics to evaluate the effectiveness of the initiative and the rural tracks, and prepare and submit an annual progress report to the General Assembly. The bill requires that the General Assembly annually appropriate $150,000 to the University of Colorado Health Sciences Center for the Rural Programs Office to help administer the initiative. For FY 2022-23 only, the General Assembly must appropriate up to $400,000 to the following 12 programs at state supported institutions of higher education: Adams State University, in its nursing program; Colorado Mesa University, in its nursing program; Colorado School of Public Health, in its master of public health program (CU, CSU, UNC); Colorado State University - Pueblo, in its school of nursing; Metropolitan State University of Denver, in its nursing program; University of Colorado, in its school of dental medicine; University of Colorado, in its school of medicine; University of Colorado, Colorado Springs campus, in its nursing program; University of Northern Colorado, in its school of nursing; Western Colorado University, in its master of behavioral science in rural community health program; Front Range Community College, in its nursing program; and Otero College, in its nursing program. State Expenditures The bill increases state expenditures by $4,950,000 in FY 2022-23, and by $150,000 in FY 2023-24 from the General Fund. Each named institution is provided one-time funding of $400,000 in FY 2022-23 to establish and operate a rural track program, with assistance from the Rural Program Office. Expenditures in the office are $150,000 annually. Each appropriation will be spent by schools in different ways to implement the initiative. Schools that operate a rural track must use 40 percent of Page 3 April 4, 2022 SB 22-172 funding receivedfor student scholarships. Other expenses include housing assistance and faculty and preceptor compensation. No detail was provided by the Department of Higher Education or from affected schools allowing more detailed descriptions. This fiscal note will be updated if more information becomes available. Other Budget Impacts General Fund reserve. Under current law, an amount equal to 15 percent of General Fund appropriations must be set aside in the General Fund statutory reserve beginning in FY 2022-23. Based on this fiscal note, the bill is expected to increase the amount of General Fund held in reserve by the amounts shown in Table 1, which will decrease the amount of General Fund available for other purposes. Effective Date The bill takes effect upon signature of the Governor, or upon becoming law without his signature. State Appropriations For FY 2022-23, the bill requires the following appropriations totaling $4,950,000 from the General Fund: $150,000 to University of Colorado Health Sciences Center, Rural Programs Office; $400,000 to Adams State University; $400,000 to Colorado Mesa University; $400,000 to University of Colorado for allocation to the tri-institutional Colorado School of Public Health (CU, CSU, UNC); $400,000 to Colorado State University - Pueblo; $400,000 to Metropolitan State University of Denver; $400,000 to University of Colorado, for its school of dental medicine; $400,000 to University of Colorado, for its school of medicine; $400,000 to University of Colorado, Colorado Springs campus; $400,000 to University of Northern Colorado; $400,000 to Western Colorado University; $400,000 to Front Range Community College; and $400,000 to Otero College. State and Local Government Contacts Higher Education The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each fiscal year. For additional information about fiscal notes, please visit: leg.colorado.gov/fiscalnotes.