LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              March 17, 1999
  
  
          TO:  Honorable Frank Madla, Chair, Senate Committee on
               Intergovernmental Relations
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB 535  by Lindsay (Relating to the effect of a municipal
               annexation on a school district located in an annexed
               area.), Committee Report 1st House, Substituted
  
**************************************************************************
*  No significant fiscal implication to the State is anticipated.        *
**************************************************************************
  
Local Government Impact
  
A municipality annexing a school district facility and providing utility
services to that facility could receive less utility revenue in the
first 15 months after annexation if the municipality's rates would be
higher than the rates paid by the district prior to annexation. In most
cases, this reduction in revenue is not anticipated to be significant.
  
  
Source Agencies:   
LBB Staff:         JK, TL