LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session March 27, 1995 TO: Honorable John T. Montford, Chair IN RE: Senate Bill No. 407 Committee on Finance By: Montford, Senate Ratliff Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on Senate Bill No. 407 (Relating to certain distribution of state money to school districts and public institutions of higher education.) this office has determined the following: The bill would amend the schedule of payments to school districts from the Foundation School Fund. The proposed schedule would increase the amount of payments to districts in the early months of each fiscal year. The bill would also require that 1/12th of annual appropriations from the General Revenue Fund to institutions of higher education be allocated to the Higher Education Appropriations Account in the General Revenue Fund each month. The estimates below are based on Comptroller estimates. To the extent that institutions of higher education substitute local or current fund revenue to maintain current spending patterns, the institutions could experience some loss in interest income. 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 Savings Year Gain to the to General Revenue School Districts Fund 001 1996 $6,301,000 $12,900,000 1997 6,320,000 12,900,000 1998 6,225,000 12,900,000 1999 6,464,000 12,900,000 2000 6,560,000 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, Central Education Agency - Administration, Higher Education Coordinating Board LBB Staff: JK, RS, DF