Austin, Texas
                    FISCAL NOTE, 76th Regular Session
                              March 31, 1999
          TO:  Honorable Teel Bivins, Chair, Senate Committee on
        FROM:  John Keel, Director, Legislative Budget Board
       IN RE:  SB955  by Bivins (Relating to grants in support of
               pre-reading instruction), As Introduced
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB955, As Introduced:  negative impact of $(2,000,000) 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                         $(1,000,000)  *
          *       2001                          (1,000,000)  *
          *       2002                          (1,000,000)  *
          *       2003                          (1,000,000)  *
          *       2004                          (1,000,000)  *
All Funds, Five-Year Impact:
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2000                             $(1,000,000) *
         *      2001                              (1,000,000) *
         *      2002                              (1,000,000) *
         *      2003                              (1,000,000) *
         *      2004                              (1,000,000) *
Fiscal Analysis
The bill would create a grant program to support pre-reading instruction.
Grants would range between $50,000 and $150,000, and would be awarded
through a competitive process.  The Commissioner of Education would be
instructed to distribute at least 95 percent of appropriated funds,
establish rules for administration of the grant program, certify
percentage low-income enrollment in pre-reading programs, determine
necessary matching funds from local sources, and evaluate the
effectiveness of grants.
The bill corresponds with the Ready to Read Program, an initiative for
which $2 million has been proposed in the 2000-2001 biennium. For the
purposes of program administration, the Texas Education Agency could not
expend more than three percent of appropriated funds in fiscal year
2000, and one percent in subsequent years.  The TEA would be allowed to
expend two percent of appropriated funds for the purpose of program
evaluation in fiscal year 2000, and four percent in subsequent years.
Local Government Impact
No significant fiscal implication to units of local government is

Districts that choose to apply for grants may incur administrative and
program costs. Districts and other entities (public and private) would
be eligible to apply for grants if they provide preschool instruction,
have a program with at least 75 percent low-income enrollment, and are
able to raise local matching funds.  The amount of matching funds would
be contingent on local economic capacity, and would be determined by the
Commissioner of Education.
Source Agencies:   
LBB Staff:         JK, CT, RN, CW