LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 13, 1997
         
         
      TO: Honorable Paul Sadler, Chair            IN RE:  Senate Bill No. 1893, As Engrossed
          Committee on Public Education                              By: Bivins
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB1893 ( Relating 
to the number of days of service required of certain educators 
for the school year.) this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB1893-As Engrossed
         
The bill could result in a savings to General Revenue from a 
reduction of anticipated Teacher Retirement System liability 
of as much as $28,800,000 for the 1998-1999 biennium. 
         
The bill would make no appropriation but could provide the legal 
basis for an appropriation of funds to implement the provisions 
of the bill.

The bill would amend the section of the Texas 
Education Code related to the minimum number of days for teacher 
service.  

The daily rate of pay for teachers was estimated 
by summing base pay of teachers in 1997 ($8.2 billion) and dividing 
by 1997 FTEs (253,000) and days of employment (185).

Under 
current law, the minimum days of service for teachers would 
increase by an estimated 7 days from 1997 to 1998.  The bill 
would reduce this number to 2 days.  

While current law does 
not require districts to increase teacher pay proportionally 
for an increase in the minimum days of service, districts may 
increase teacher pay if the number of required working days 
increases.  The proportional cost of a seven day increase is 
$310 million, whereas a two day increase would cost only $88 
million.  As a result, anticipated Teacher Retirement System 
liability might be reduced by $14.4 million per year as a result 
of this bill.  The difference in minimum days of services between 
1998 and 1999 is 5 days.
         
 
          
The bill would reduce the expected minimum days of service by 
5 days in both 1998 and 1999.  Because districts receive no 
state funds based on the minimum service days, any increase 
to teacher salaries would be the responsibility of the local 
district. The daily rate of pay statewide for 1997 was $44.3 
million.  If districts increase minimum service days by 2 instead 
of 7 for 1998, the potential savings is estimated to be $221.6 
million.  The potential savings is likely to be the same for 
1999.

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