LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
April 30, 1995
TO: Honorable John T. Montford, Chair IN RE: Committee Substitute
Committee on Finance for
Senate Senate Bill
Austin, Texas No. 405
FROM: John Keel, Director
In response to your request for a Fiscal Note on Senate Bill No.
405 (Relating to the distribution of the foundation school fund
and to tax and revenue anticipation notes made necessary in part
by such distribution.) this office has determined the following:
The bill would implement the Comptroller's Gaining Ground
Recommendation ED1 by changing the pattern of distribution from
the Foundation School Fund to school districts each month. The
bill would also amend portions of the statute relating to cash
management notes to accommodate the change in foundation school
fund distribution.
A gain to the General Revenue Fund would result from the
differential between what the state is charged on cash management
notes and what it can derive from investing its cash balances
during the year. Local districts should see a reduction in
borrowing costs.
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 Revenue Probable Revenue
Year Gain to General Gain to Local
Revenue Fund 001 School Districts
1996 $1,200,000 $12,900,000
1997 1,200,000 12,900,000
1998 1,200,000 12,900,000
1999 1,200,000 12,900,000
2000 1,200,000 12,900,000
Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.
Source: Comptroller of Public Accounts
LBB Staff: JK, DH, DF