LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 20, 1995



 TO:     Honorable Bill Ratliff, Chair          IN RE: Committee Substitute
         Committee on Education                 for
         Senate                                              SenateBill No.
         Austin, Texas                          194










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 provide for continuation of the Communities in
Schools (CIS) program in current schools and for additional
campuses as funds are available. The bill would authorize the
state coordinator for CIS programs to implement a formula for
reducing state funding to current schools by 50 percent over a
period of five years in order to reinvest the savings to extend
the program to additional schools in subsequent years.

The bill would establish funds set aside for the CIS program out
of the compensatory education allotment. For that purpose, the
bill would authorize the Commissioner of Education to set aside
$15.6 million or more per year, to be determined by legislative
appropriations, and to prorate the difference (cost) to districts
by reducing each district's Tier I allotment as currently
established under Section 16.254, Education Code. The $15.6
million set aside amount is provided for fiscal years 1996 and
1997 only.  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 for the
biennium.

 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              $763,771          ($763,771)
          1997             1,011,775         (1,011,775)
                                                        
          1998                     0                   0
                                                        
          1999                     0                   0
          2000                     0                   0
                                                        
                                                        
                                                        
       Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.


Source:   Central Education Agency - Administration
          LBB Staff: JK, THH, DH, WRR