Austin, Texas
                                   FISCAL NOTE
                               75th Regular Session
                                  February 17, 1997
      TO: Honorable Paul Sadler, Chair            IN RE:  Senate Bill No. 297, 
          Committee on Public Education                              By: Ratliff
          Austin, Texas
         FROM:  John Keel, Director    
In response to your request for a Fiscal Note on SB297 ( relating 
to the technology allotment under the foundation school program) 
this office has detemined the following:
         Biennial Net Impact to General Revenue Funds by SB297-
Implementing the provisions of the bill would result in a net 
positive impact of $164,100,000 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
This bill would change the statutory authorization for increases 
in the technology allotment.  It would repeal Texas Education 
Code 31.021(c), and create an authorization to establish, through 
appropriation, an allotment higher than $30 per student.  

legislation would take effect immediately if it receives two-thirds 
majority vote in both Houses, and affect the 1996-97 school 
year.  If it does not receive the required vote to be effective 
immediately, it would affect the 1997-98 school year.

Current law authorizes an increase in the technology allotment 
under certain circumstances.  Section 31.021 (c), provides for 
a transfer from the Available School Fund to the Textbook Fund 
when funds available for per capita distribution exceed the 
amount available for the 1995-96 school year.  This transfer 
increases the amount available for appropriation for the purposes 
of the technology allotment established by Section 31.021 (b). 
 It is estimated that this provision would authorize a transfer 
of $97.3 million for the 1996-97 school year, however, these 
funds are not appropriated.  

For subsequent years, the calculation 
of the amount of possible impact depends on the amounts appropriated 
for textbooks in each fiscal year.  Based on the 1998-99 Biennial 
Revenue Estimate of the Comptroller of Public Accounts, there 
would be no increase in funds available for the technology allotment 
in 1997-98, because the entire appropriation for textbooks is 
appropriated in the first year of the biennium.  

The amounts 
available for appropriation for the technology allotment for 
1998-99 would increase by approximately $66.8 million, based 
on the current revenue estimate of $1,116,784,000 available 
for per capita distribution.  Subsequent years are assumed to 
follow the same pattern. There are no revenue forecasts for 
the last three years of the five year time period of this fiscal 
note.  For fiscal note purposes, revenues are assumed to remain 
constant at the 1998-99 level, and that textbook spending fluctuates 
as expected for the next biennium.

This fiscal note assumes 
immediate effect of the bill.
The probable fiscal implications of implementing the provisions 
of the bill during each of the first  five years following passage 
is estimated as follows:
Six Year Impact:
Fiscal Year Probable           
            from Available                                                                                
            School Fund                                                                                   
       1997       $97,300,000                                                                        
       1999        66,800,000                                                                        
       2001        66,800,000                                                                        
         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
               1997          $97,300,000
               1998                    0
               1999           66,800,000
               2000                    0
               2001           66,800,000
               2002                    0
Similar annual fiscal implications would continue as long as 
the provisions of the bill are in effect.
This bill may result in fiscal implication to units of local 

To the extent that the technology allotment changes 
as a result of this bill, districts may incur reductions or 
increases in revenues.  
   Source:            Agencies:   701   Texas Education Agency - Administration
                      LBB Staff:   JK ,DH ,DD