LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
                                Revision 1
  
                                May 5, 1999
  
  
          TO:  Honorable Paul Sadler, Chair, House Committee on Public
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1120  by Najera (relating to exceptions to public
               school class size limits granted by the commissioner of
               education), Committee Report 1st House, as substituted
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB1120, Committee Report 1st House, as substituted: negative          *
*  impact of $(1,380,000) through the biennium ending August 31,         *
*  2001.                                                                 *
*                                                                        *
*  The bill would make no appropriation but could provide the legal      *
*  basis for an appropriation of funds to implement the provisions of    *
*  the bill.                                                             *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2000                           $(690,000)  *
          *       2001                            (690,000)  *
          *       2002                            (690,000)  *
          *       2003                            (690,000)  *
          *       2004                            (690,000)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2000                               $(690,000) *
         *      2001                                (690,000) *
         *      2002                                (690,000) *
         *      2003                                (690,000) *
         *      2004                                (690,000) *
         *****************************************************
  
Fiscal Analysis
  
The bill would limit the enrollment in a district excepted from the class
size limitations of Education Code, 25.112(d), to a class size of no
more than 24 students.
  
  
Methodology
  
The Texas Education Agency estimates that the over-riding limit of 24
students in kindergarten through fourth grade would cause a  need for an
additional 309 teachers statewide.  Based on an estimated annual salary
cost of $10.6 million, this would result in additional Teacher
Retirement System state contributions of approximately $690,000 per
year.
  
  
Local Government Impact
  
Local personnel costs (salary and benefits) would increase by
approximately $11.4 million per year.  Costs for temporary facilities
would be about $10.5 million in fiscal year 2000.
  
  
Source Agencies:   701   Texas Education Agency - Administration
LBB Staff:         JK, CT, RN