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