BILL ANALYSIS


                                                           S.B. 8
                                                     By: Montford
                                                          Finance
                                                         01-18-95
                                     Committee Report (Unamended)
BACKGROUND

In order to free up funds for alternate purposes, the 73rd
Legislature enacted legislation to delay the final payments of
state funds for the current biennium to the Teacher Retirement
System and the Employee Retirement System, the Foundation School
Program, and certain institutions of higher learning.  Almost $800
million was freed up as a result of the program.  The comptroller
has certified that a $2 billion surplus will appear on the state
balance sheet in fiscal year 1995.  As a result, the funds are
available to make the payments in this biennium, thereby placing
the state back on the proper payment schedule.

PURPOSE

As proposed, S.B. 8 repeals legislation which deferred the payment
of certain obligations to the following biennium and provides for
an increased appropriation to fund payment of those obligations.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1.  Repealer: Section 16.260(f), Education Code (Foundation
School Fund Transfers).

SECTION 2.  Repealer: Sections 403.0935 and 403.0936, Government
Code (Account for Certain General Revenue Appropriations to Certain
Institutions of Higher Education; General Revenue Appropriations to
Public Junior Colleges).

SECTION 3.  Repealer: Sections 5 and 6, Chapter 39, Acts of the
73rd Legislature, Regular Session, 1993.
     
     Section 5.  Repeals provision that prohibits the comptroller
     from making monthly payments from any fund or account to the
     state Employees Retirement System of Texas during the summer
     months and requiring the deferred payment to be made in
     September.  Sets forth the procedures for the comptroller
     regarding deferred payments.
     
     Section 6.  Repeals the provision that prohibits the
     comptroller from making monthly payments from the general
     revenue fund for the Teacher Retirement System of Texas during
     the summer months and requiring a deferred payment to be made
     in September.  Sets forth the procedures for the comptroller
     regarding deferred payments.
     
SECTION 4.  Provides that the estimated amount appropriated for the
purpose provided by item A.1.1 of the appropriation to the State
Employees Retirement Program for the fiscal year ending August 31,
1995, in the General Appropriations Act, is increased from
$161,352,490 to $225,852,490.

SECTION 5.   Provides that the estimated amount appropriated for
the purpose provided by item A.1.1 of the appropriation to the
Teachers Retirement System for the fiscal year ending August 31,
1995, in the General Appropriations Act, is increased from
$741,373,715 to $986,656,715.

SECTION 6.  Provides that an increase in an appropriation under
Section 4 or 5 of this Act is funded from the same funds and
accounts from which the original appropriation was funded.

SECTION 7. Emergency clause.
           Effective date: upon passage.