LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session March 15, 1995 TO: Honorable John T. Montford, Chair IN RE: Senate Bill No. 409 Committee on Finance By: Ratliff Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on Senate Bill No. 409 (Relating to the accounting treatment of premium and discount associated with the purchase of certain securities for the permanent school fund.) this office has determined the following: The bill would require the State Board of Education to apply GAAP accounting methods, instead of the statutory treatment currently used, to premiums and discounts received on fixed income securities. This change would speed up payments to the Available School Fund. The bill would become effective September 1, 1995. 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 Year Gain/(Loss) to the Available School Fund 002 1996 $40,000,000 1997 1998 1999 2000 The fiscal implication to units of local government cannot be determined. Source: Central Education Agency - Administration, Comptroller of Public Accounts LBB Staff: JK, SM, DF