LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 17, 1995



 TO:     Honorable Bill Ratliff, Chair          IN RE:  Senate Bill No. 194
         Committee on Education                         By: Barrientos
         Senate
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
194 (Relating to the operation and expansion of the Communities
in Schools program) 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.

The bill would increase the maximum number of continuing
Communities in Schools programs to 244 campuses and allow for
expansion to as many as 135 new campuses.  In addition, the state
coordinator would be authorized to designate six additional
counties or cities for participation in the program.  The bill
would also create a fifteen member business foundation council to
function in an advisory capacity.  Any additional costs resulting
from this council would be absorbed through existing
appropriations to the Texas Employment Commission.

The bill would fund the expansion of the program through a set
aside from the compensatory education allotment of $18.0 million
in 1996 and $21.2 million in 1997 which is an increase of $3.1
million in 1996 and $6.3 million in 1997.  Increasing this set
aside would lower weighted average daily attendance (WADA) in
Tier II of the foundation school program and reduce state aid to
local districts.

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 Savings    Probable Cost to 
          Year      from  General       Local School   
                  Revenue Fund 001       Districts     
                                                       
          1996            $1,101,142       ($1,101,142)
          1997             2,378,466        (2,378,466)
                                                       
          1998             2,378,466        (2,378,466)
                                                       
          1999             2,378,466        (2,378,466)
          2000             2,378,466        (2,378,466)
                                                       
                                                       
                                                       



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




Source:   Central Education Agency - Administration, Texas
Employment Commission
          LBB Staff: JK, DH, WRR