LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              April 30, 1999
  
  
          TO:  Honorable Bill Ratliff, Chair, Senate Committee on Finance
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1878 by Duncan (relating to the allocation of certain
               constitutional funds to certain institutions of higher
               education), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Fundsfor     *
*  SB1878, As Introduced:  negative impact of $(8,601,348) 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                         $(4,300,674)  *
          *       2001                          (4,300,674)  *
          *       2002                          (4,300,674)  *
          *       2003                          (4,300,674)  *
          *       2004                          (4,300,674)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2000                             $(4,300,674) *
         *      2001                              (4,300,674) *
         *      2002                              (4,300,674) *
         *      2003                              (4,300,674) *
         *      2004                              (4,300,674) *
         *****************************************************
  
Fiscal Analysis
  
The bill would update the formula for allocating Higher Education Funds
to participating institutions.  The formula would be based on a Texas
Higher Education Coordinating Board proposal and would include
additional revenue each year to ensure that Texas Southern University
would not receive less than 95 percent of its current allocation and
that no other institution receive less than 90 percent of its current
allocation.
  
  
Methodology
  
To ensure no institution receives a certain percentage less than its
current allocation, $4,300,674 is added to the current $175,000,000 for
distribution to Higher Education Fund institutions.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, BB, LD, PF