LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                               May 14, 1999
  
  
          TO:  Honorable Teel Bivins, Chair, Senate Committee on
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB3653  by Oliveira (Relating to compensatory education
               and accelerated instruction in public schools), As
               Engrossed
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB3653, As Engrossed:  negative impact of $(400,000) 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                           $(200,000)  *
          *       2001                            (200,000)  *
          *       2002                            (200,000)  *
          *       2003                            (200,000)  *
          *       2004                            (200,000)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                     Foundation School Fund         *
         *                              0193                  *
         *      2000                               $(200,000) *
         *      2001                                (200,000) *
         *      2002                                (200,000) *
         *      2003                                (200,000) *
         *      2004                                (200,000) *
         *****************************************************
  
Fiscal Analysis
  
The bill would revise the definitions of at risk students in Section
29.081 of the Texas Education Code.

The bill would add districts that did not participate in the federal free
and reduced-price school lunch program in the preceding school year to
the state compensatory education program.  Districts that participated
in the school lunch program, but where one or more campuses were not
served under the program would also be able to seek funds for
educationally disadvantaged students.  The commissioner would adopt
rules to determine the number of educationally disadvantaged students
not counted in the federal free and reduced-price school lunch program.
  
  
Methodology
  
The Texas Education Agency estimates that the compensatory education
inclusion of educationally disadvantaged students not served under the
federal free and reduced-price school lunch program would cost the
Foundation School Program (FSP) an additional $200,000 per year.
  
  
Local Government Impact
  
The bill would require some districts to alter their compensatory
education services in accordance with revised definitions of at risk
students.  Costs would vary depending on the manner in which
compensatory education services are currently provided by districts.
  
  
Source Agencies:   701   Texas Education Agency - Administration
LBB Staff:         JK, CT, CW, RN