LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 2, 1997
         
         
      TO: Honorable Teel Bivins, Chair            IN RE:  House Bill No. 2812, As Engrossed
          Committee on Education                              By: Woolley
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2812 ( Relating 
to the inclusion of performance pay for purposes of contributions 
and benefits uder the Teacher Retirement System of Texas.) this 
office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB2812-As Engrossed
         
No fiscal implication to the State is anticipated.
         

         
 
          
The bill would include performance pay awarded to an employee 
by a school district in the definition of salary and wages used 
in contribution and benefit calculation purposes for the Teacher 
Retirement System (TRS).  Performance pay is part of a total 
compensation plan approved by the board of trustees of a school 
district, and is not part of the salary schedule established 
by the Texas Education Code, Section 21.402.  Since any compensation 
received through a performance pay plan would be over and above 
the minimum salary schedule, as adjusted by the Cost of Education 
Index, the local school district would be required to pay the 
6.0% employer retirement contribution to TRS.
          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,LP ,PE ,SC