LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              April 26, 1999
  
  
          TO:  Honorable Teel Bivins, Chair, Senate Committee on
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1455  by West, Royce (relating to compensatory,
               intensive, and accelerated education in public schools),
               Committee Report 1st House, Substituted
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB1455, Committee Report 1st House, Substituted:  negative impact     *
*  of $(500,000) 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                           $(300,000)  *
          *       2001                            (200,000)  *
          *       2002                            (200,000)  *
          *       2003                            (200,000)  *
          *       2004                            (200,000)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
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*Fiscal    Probable Savings/(Cost) from    Probable Savings/(Cost) from   *
* Year        Foundation School Fund           General Revenue Fund       *
*                      0193                            0001               *
*  2000                        $(200,000)                      $(100,000) *
*  2001                         (200,000)                               0 *
*  2002                         (200,000)                               0 *
*  2003                         (200,000)                               0 *
*  2004                         (200,000)                               0 *
***************************************************************************
  
Fiscal Analysis
  
The bill would revise the definitions of at risk students in Section
29.081 of the Texas Education Code.

The Texas Education Agency would be required to compile and report
performance and accountability information concerning students served by
district compensatory education programs.

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.  The commissioner would adopt
rules to determine the number of educationally disadvantaged students in
districts that do not participate in the school lunch program.
  
  
Methodology
  
The Texas Education Agency estimates that including districts not served
under the federal free and reduced-price school lunch program in the
preceding school year would cost the Foundation School Program (FSP) an
additional $200,000 per year.  The TEA estimates the study of
compensatory education programs would cost approximately $100,000 in
fiscal year 2000.
  
  
Local Government Impact
  
The bill would require districts to alter their compensatory education
services in accordance with revised definitions of at risk status.

New performance reporting guidelines would create minor costs for
districts.
  
  
Source Agencies:   
LBB Staff:         JK, CT, RN, CW