LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 28, 1997
TO: Honorable Bill Ratliff, Chair IN RE: Senate Bill No. 105, Committee Report 1st House,
as amended
Committee on Finance By: Nelson
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB105 ( relating
to the dedication of revenue derived from the state lottery
to the foundation school fund) this office has detemined the
following:
Biennial Net Impact to General Revenue Funds by SB105-Committee Report 1st House, as amended
Implementing the provisions of the bill would result in a net
negative impact of $(107,746,000) to General Revenue Related
Funds through the biennium ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
The bill would amend the State Lottery Act to dedicate four
percent of net lottery revenue to a new dedicated account (unnamed)
in the General Revenue Fund 0001, to be used to fund tuition
assistance grants under Subchapter G, Chapter 55 of the Education
Code. In addition, one percent of the balance would be dedicated
to the Texas Education Agency for community-based adult literacy
programs, and the remainder would be dedicated to the Foundation
School Fund 0193. The bill would take effect September 1, 1997.
Methodolgy
The estimated revenue gains and losses included here are based
on the Comptroller of Public Accounts 1998-99 Biennial Revenue
Estimate. For purposes of the fiscal note, it is assumed that
one percent of the remaining balance dedicated to the Texas
Education Agency would be deposited to the General Revenue Fund.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Revenue Probable Revenue Probable Revenue
Gain/(Loss) from Gain/(Loss) from Gain/(Loss) from
General Revenue Foundation New GR-Dedicated
Fund School Fund Account -
0001 0193 8021
1998 ($1,286,367,000) $1,234,414,000 $51,953,000
1998 (1,381,434,000) 1,325,641,000 55,793,000
2000 (1,443,494,000) 1,385,195,000 58,299,000
2001 (1,496,919,000) 1,436,462,000 60,457,000
2002 (1,532,172,000) 1,470,291,000 61,881,000
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 ($51,953,000)
1999 (55,793,000)
2000 (58,299,000)
2001 (60,457,000)
2002 (61,881,000)
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No fiscal implication to units of local government is anticipated.
Source: Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK ,RR ,PH