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