Austin, Texas
                                   FISCAL NOTE
                               75th Regular Session
                                  February 2, 1997
      TO: Honorable Bill Ratliff, Chair            IN RE:  Senate Bill No. 297
          Committee on Finance                              By: Ratliff/et al.
          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-As Introduced
             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.  

This 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 allotment 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 six years following passage is estimated as follows:
Six Year Impact:
Fiscal Year Probable           
            from Available                                                                                
            School Fund                                                                                   
       1997       $97,300,000                                                                        
       1997                 0                                                                        
       1999        66,800,000                                                                        
       2000                 0                                                                        
       2001        66,800,000                                                                        
       2002                 0                                                                        
         Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds during each
of the first six 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 government.

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 ,RR ,DD ,DH