LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 10, 1997
         
         
      TO: Honorable Robert Junell, Chair            IN RE:  House Bill No. 538, Committee Report 1st House,
 as amended
          Committee on Appropriations                              By: Maxey
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB538 ( relating 
to the distribution of general  revenue appropriations to certain 
institutions of higher education) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by HB538-Committee Report 1st House, as amended
         
No fiscal implication to the State is anticipated.
         

         
 
FISCAL ANALYSIS
The bill would require the Comptroller of Public 
Accounts to make available general revenue appropriations to 
all institutions of higher education, except public junior colleges, 
in 10 installments as defined by the bill on the first business 
day of each month.  In addition, the bill would allow the Comptroller 
to make available all or part of the monthly installments to 
an institution early, if the Comptroller determined that the 
institution had an unusual need for it.

The bill would take 
effect September 1, 1997.

The bill would partially implement 
the Texas Performance Review recommendation ED20 in Disturbing 
the Peace: The Challenge of Change in Texas Government.

METHODOLOGY
Based 
on an examination of general revenue spending patterns of institutions 
in 1995, actual general revenue spending is below the caps established 
by the bill.  It is assumed that those spending practices would 
continue and that interest earnings for the Treasury and local 
accounts would remain at current levels.  Therefore, there would 
be no fiscal impact to the state. 
          
LOCAL
No fiscal implication to units of local government is 
anticipated.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,RR ,LD