BILL ANALYSIS



C.S.S.B. 407
By: Montford (Junell)
04-28-95
Committee Report (Substituted)


BACKGROUND

In past years, state appropriations have not always been sufficient
to give school districts the amount actually due them under
statutory school-finance formulas.  These shortages caused mid-year
revision of how much funding districts would receive from the
state.  Funds were cut on a pro rata basis, and the cuts became
known as proration.  S.B. 7, passed during the 73rd Legislature,
eliminated proration and now requires the state commissioner of
education to issue a warrant for each district's entitlement based
on the district tax rate for the final year of the preceding
biennium.  State aid is now based on projected student counts and
property values contained in a computer model run by the
Legislative Budget Board, with the most recent model indicating
that the state will owe school districts $305 million for the 1994-1995 school year.

The state has historically paid the enrollment and start-up costs
for new community college campuses.  New campuses are anticipated
at Collin County Community College, North Harris Community College,
Blinn College, and Tarrant County Junior College.  Last session,
the McAllen Extension of Texas State Technical College was
converted to the South Texas Community College.  Enrollment at
South Texas Community College has quadrupled the original
projection.  

Other emergency needs include a low fund levels in the governor's
Disaster Contingency Account, increased commitments to the Texas
Youth Commission and costs for investigation of the Texas
Commission on Alcohol and Drug Abuse incurred by the Department of
Public Safety.  Medicaid premiums appropriated to the Texas
Department of Health have exceeded the actual caseload and costs
experienced.  

PURPOSE

C.S.S.B. 407 provides emergency appropriations to the Central
Education Agency for payments to school districts for the 1994-1995
school year, the Texas Higher Education Coordinating Board for
specific costs at certain campuses, the governor's Disaster
Contingency Account, the Texas Youth Commission for care and
confinement of juvenile offenders and Department of Public Safety
for costs associated with the investigation of the Texas Commission
on Alcohol and Drug Abuse.  C.S.S.B. 407 also reduces the
appropriation for the Texas Department of Health by $8,250,000 for
the fiscal year ending August 31, 1995.    

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  (a) Authorizes school districts whose adjustments of
state funds to which each school district is entitled for the 1994-1995 school year would result in an increase in the next fiscal
year, on determination pursuant to Section 16.254(i), Education
Code, to receive payment of all or, on a pro rata basis, part of
the increase during the current fiscal year, to the extent that
appropriations provided by this section allow.  (b) Requires the
remainder of appropriations that exceed the total of increased
entitlements determined pursuant to Section 16.254(i), Education
Code, and payable during the current fiscal year pursuant to
Subsection (a), to be paid to all school districts on a pro rata
basis on or before July 25, 1995, as an advance on payments
otherwise due on September 25, 1995.  (c) Provides that $305
million is appropriated from the general revenue fund to the
Central Education Agency for the payments authorized by this
section for the current fiscal year. 

SECTION 2.  (a) Provides that $13,744,133 is appropriated from the
fund to the Texas Higher Education Agency Coordinating Board
(coordinating board) to fund enrollment and start-up costs at new
campuses at certain colleges.  (b) Provides that unexpended
balances at the end of fiscal year 1995 of an amount appropriated
by this section are reappropriated for the same purposes in the
1996-1997 biennium.  

SECTION 3.  Provides that $2,312,050 are appropriated from the
general revenue fund to the coordinating board to fund specific
costs at South Texas Community College.

SECTION 4.  (a) Reduces the appropriation to the Texas Department
of Health for the fiscal year ending August 31, 1995, by
$8,250,000.  (b) Out of that amount, the Comptroller shall transfer
(1) $4,000,000 to the Disaster Contingency Account for appropriate
use by the governor, (2) $4,000,000 to the Texas Youth Commission
for confinement and care of juvenile offenders with the exception
that no more than $2,300,000 may be used without the approval of
the governor, and (3) $250,000 to the Department of Public Safety
for paying expenses associate with the investigation of the Texas
Commission on Alcohol and Drug Abuse. 

SECTION 5.  Emergency clause.  Effective date upon passage.

COMPARISON OF ORIGINAL TO SUBSTITUTE

Original provided $740,000 to Tarleton State University and
$1,449,405 to Southwest Texas State University for repair of
buildings and structures damaged by hailstorms.  Original provided
$87,000 to University of Texas San Antonio for repair to buildings
of damage caused by fire.  Original provided $70,000 to Texas
Cosmetology Commission to pay costs.  Substitute reduces
appropriation to Texas Department of Health for fiscal year ending
August 31, 1995, in the amount of $8,250,000 and authorizes the
Comptroller to transfer from that sum: 1) $4,000,000 to the
Disaster Contingency Account, 2) $4,000,000 to the Texas Youth
Commission, except that the commission may not expend $2,300,000
without the approval of the governor, 3) $250,000 to the Department
of Public Safety for expenses associated with the investigation of
the Texas Commission on Alcohol and Drug Abuse.

SUMMARY OF COMMITTEE ACTION

S.B. 407 was considered before the full committee on April 26,
1995, in a public hearing.  The following testified on S.B. 407:
Dick Strader, Executive Director of the Cosmetology Commission,
Sergio Shearer, Commissioner on the Cosmetology Commission, Don
Brown, Deputy Commissioner with the Higher Education Coordinating
Board, Dr. John Anthony, President of the Collin County Community
College District.  No one testified for or against S.B. 407. 
Representative Junell moved to draft a committee substitute for
S.B. 407, and without objection the motion prevailed.  Without
objection the Chair left S.B. 407 pending.  On April 28, 1995, the
full committee reconsidered S.B. 407 in a formal meeting.  The
Chairman laid out a committee substitute to S.B. 407, and the
substitute was adopted without objection.  Representative Harris
moved that the substitute be reported favorably.  The motion
prevailed by a record vote of 17 Ayes, 0 Nays, O PNV, 10 Absent.