LEGISLATIVE BUDGET BOARD
                              Austin, Texas

                    FISCAL NOTE, 76th Regular Session

                            February 17, 1999


          TO:  Honorable Teel Bivins, Chair, Senate Committee on
               Education

        FROM:  John Keel, Director, Legislative Budget Board

       IN RE:  SB110  by Haywood (Relating to salaries of public school
               classroom teachers and librarians), As Introduced

**************************************************************************
*  Two-year Net Impact to General Revenue Related Funds for SB110, As    *
*  Introduced:  negative impact of $(8,200,000) 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                         $(4,100,000)  *
          *       2001                          (4,100,000)  *
          *       2002                          (4,100,000)  *
          *       2003                          (4,100,000)  *
          *       2004                          (4,100,000)  *
          ****************************************************

All Funds, Five-Year Impact:

         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2000                             $(4,100,000) *
         *      2001                              (4,100,000) *
         *      2002                              (4,100,000) *
         *      2003                              (4,100,000) *
         *      2004                              (4,100,000) *
         *****************************************************

Fiscal Analysis

This bill amends the Education Code to extend the current minimum salary
schedule for teachers to include additional steps for teachers and
librarians with more than 20 years of experience.  For each additional
year of experience, a teacher would be entitled to a minimum salary of
approximately 1-1.5% more than the year previous.


Methodology

This year (1998-1999), 62,194 teachers or librarians with more than 20
years of experience are employed. Based on the reported actual pay of
these individuals, 17,542 were paid less than the minimum salary proposed
by this bill.  In order to reach the new minimum salaries, school
districts would be required to increase teacher pay by approximately
$63.1 million per year.

This degree of salary increase would affect the amount of the state
contributions to the Teacher Retirement System.  At the current
contribution rate of 6.5%, the cost to the state of the minimum salary
changes would likely be about $4.1 million per year.


Local Government Impact

Local school districts would experience an estimated annual cost of $63.1
million per year.


Source Agencies:
LBB Staff:         JK, CT, RN