LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 20, 1997
         
         
      TO: Honorable Teel Bivins, Chair            IN RE:  Senate Bill No. 1019
          Committee on Education                              By: Ogden
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB1019 ( Relating 
to the school district ad valorem tax rollback rate.) this office 
has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB1019-As Introduced   FN Revision 1
         
No significant fiscal implication to the State is anticipated.
         

         
 
The bill would amend Section 26.08 of the Tax Code, pertaining 
to the school district ad valorem tax rollback rate.  The legislation 
would take effect September 1, 1997. 

Under current law, 
if the tax rate adopted by a district's governing body exceeds 
the sum of the effective maintenance and operations rate and 
the current debt rate (modified by an enrollment adjustment) 
plus $.08, an election is held wherein voters decide whether 
to limit the adopted rate to the rollback rate.  The bill would 
amend the tax code so that the calculation of the rollback rate 
is revised.  If the adopted rate exceeds the rollback rate, 
an election is held for approval of the adopted rate.  Other 
language is included in the bill to conform to the amended rollback 
concept of approval of the adopted rate rather than limitation 
to the rollback rate.  The bill would also remove some obsolete 
language referring to a county equalization tax.
          
The bill could cause a reduction in local tax effort, which 
would reduce the local contribution to the educational program. 
 This would require additional budgeting and planning efforts 
on the part of impacted school districts.
          
   Source:            Agencies:   701   Texas Education Agency - Administration
                                         
                      LBB Staff:   JK ,LP ,BR