LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 10, 1997
         
         
      TO: Honorable Teel Bivins, Chair            IN RE:  Senate Bill No. 1287, Committee Report 1st House, Substituted
          Committee on Education                              By: Gallegos
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB1287 ( Relating 
to the inclusion of performance pay in the calculation of a 
teacher's standard service retirement annuity.) this office 
has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB1287-Committee Report 1st House, Substituted
         
No fiscal implication to the State is anticipated.
         

         
 
          
The bill would include performance pay awarded to an employee 
by a school district in the definition of salary and wages used 
in contribution and benefit calculation purposes for the Teacher 
Retirement System.  Performance pay is part of a total compensation 
plan approved by the board of trustees of the district and is 
not part of the salary schedule established by the Texas Education 
Code, Section 21.402.  Since any compensation received through 
a performance pay plan would be over and above the minimum salary 
schedule, as adjusted by the Cost of Education Index, local 
school districts would be required to pay the 6.0% employer 
retirement contribution to TRS.

          
   Source:            Agencies:   701   Texas Education Agency - Administration
                                         
                      LBB Staff:   JK ,LP ,SC ,GJ