BILL ANALYSIS


                                                     C.S.S.B. 407
                                                     By: Montford
                                                          Finance
                                                         03-29-95
                                   Committee Report (Substituted)
BACKGROUND

Recently, some higher education institutions have had to use funds
appropriated to them from the general revenue fund to cover extra,
unexpected costs.  For example, Tarleton State University had to
pay for repairs to buildings damaged by severe hailstorms, and
Southwest Texas State University incurred expenses for repairing
and reconstructing buildings and structures with water and hail
damage.  Other institutions have requested more appropriations for
enrollment and start-up costs at new campuses.  Public school
districts around the state have also experienced a need for
increased funding.

PURPOSE

As proposed, C.S.S.B. 407 provides appropriations for expenses
incurred by specific higher education institutions, the Central
Education Agency, the Texas Higher Education Coordinating Board,
and the Texas Cosmetology Commission; provides extra appropriations
for school districts.

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. (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 (fund) to the Central Education Agency
     for the payments authorized by this section for the current
     fiscal year.
     
     SECTION 2.     Provides that in addition to appropriations for the
current fiscal biennium, $740,000 is appropriated for the remainder
of the fiscal year ending August 31, 1995, from the fund to
Tarleton State University for specific expenses.

            SECTION 3.   (a) Provides that in addition to appropriations for the
current fiscal biennium, $1,449,405 is appropriated for the
remainder of the fiscal year ending August 31, 1995, from the fund
to Southwest Texas State University for specific expenses.

     (b) Authorizes the amount appropriated by this section to
     reimburse Southwest Texas State University's institutional
     funds for certain amounts previously paid, regardless of the
     fiscal year in which the payments were made.
     
SECTION 4. (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 5.     Provides that $2,312,050 are appropriated from the fund
to the coordinating board to fund specific costs at South Texas
Community College.

SECTION 6. Provides that $70,000 is appropriated for the fiscal
year ending August 31, 1995, from the fund to the Texas Cosmetology
Commission to pay costs associated with carrying out provisions of
Chapter 1036, Article 8451a, V.T.C.S.

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