LEGISLATIVE BUDGET BOARD

                         Austin, Texas



                          FISCAL NOTE

                     74th Regular Session


                       February 7, 1995



         TO:    Honorable Bill Ratliff, Chair IN RE:  Senate Bill No. 5
      Committee on Education                          By: Bivins
      Senate
      Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
5 (Relating to state assistance in financing public school
facilities.) this office has determined the following:

The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.

This bill creates a funding program for school facilities.  
Districts with property wealth up to $280,000 per unweighted ADA
are eligible to participate in the program.  The program provides
funding for new and existing debt using a guaranteed yield of $28
per penny per unweighted ADA for up to $0.25 of debt service tax
effort.

The estimates shown are based on current information (as of
2/1/95) for district property values, average daily attendance
(ADA) and tax rates and are subject to change as these data are
updated.

Other assumptions used for these estimates include:

20 year maturity date for debt issued    




8% Annual Percentage Rate for debt issued
$2 billion in new debt to meet critical need, as presented by TEA
to the Senate Interim Committee on School Facilities, issued in
1996.
$1 billion in additional new debt issued in 1998, 1999, 2000, as
indicated by current trends in local debt issuance.

TEA also indicates that there may be some administrative costs to
the state associated with data collection through the Public
Education Information Management System (PEIMS), but that cost
cannot be determined.
















The probable fiscal implication of implementing the provisions of
the bill during each of the first  five years following passage
is estimated as follows:




           Fiscal  Probable Cost Out 
            Year      of  General    
                   Revenue Fund 001  
                                     
          1996           $147,138,247
          1997            138,156,567
                                     
          1998            198,730,749
                                     
          1999            259,122,444
          2000            318,965,785
                                     
                                     
                                     


       Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.    




The fiscal implication to school districts cannot be determined
because the amount of debt that would have been issued without
the guaranteed yield cannot be estimated.


Source:   Office of the Attorney General, Comptroller of Public
Accounts,
                        Central Education Agency -Administration
          LBB Staff: JK, DH, DF

        Approval Status:

        Comments:
        LBB Coordinator Section


        Director's Approval Section