LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                             February 6, 2001
  
  
          TO:  Honorable Paul Sadler, Chair, House Committee on Teacher
               Health Insurance, Select
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB50  by Chavez (Relating to a state funding allotment
               for health insurance and other health care benefits for
               public school employees.), As Introduced
  
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*  The bill would make no appropriation but could provide the legal      *
*  basis for an appropriation of funds to implement the provisions of    *
*  the bill.                                                             *
*                                                                        *
*  The annual cost of this bill to the state depends upon the amount     *
*  set for the Employee Health Care Benefits Allotment under Tier I      *
*  of the Foundation School Program, which is not specified in the       *
*  bill.  Were the allotment set at $100 per student in average daily    *
*  attendance (ADA), the cost to the state would be approximately        *
*  $390 million per year, beginning in fiscal year 2003.                 *
**************************************************************************
  
The bill adds a new section (Section 42.159) to the Education Code, which
would provide an Employee Health Care Benefits Allotment under Tier I of
the Foundation School Program.  The bill does not specify an allotment
amount per student in average daily attendance (ADA).  School districts
would only be allowed to use the allotment to increase the district
financial contribution for  employee health insurance coverage or other
health care benefits or to pay costs supplementary to the district's
regular health insurance program.

The bill exempts the allotment from being included in the calculation of
weighted average daily attendance used in Tier II funding under the
Foundation School Program.
  
Local Government Impact
  
Local school districts would experience savings to the extent that the
district used the state funds provided for the sole purpose of
increasing contributions to employee health insurance programs.
  
  
Source Agencies:   323   Teacher Retirement System, 701   Texas
                   Education Agency
LBB Staff:         JK, CT, RN, PF