LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 4, 2001
  
  
          TO:  Honorable Paul Sadler, Chair, House Committee on Public
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB379  by Garcia (Relating to the funding allotment for
               bilingual education programs in public schools.), As
               Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB379, As Introduced:  negative impact of $(425,900,000) through      *
*  the biennium ending August 31, 2003.                                  *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                       $(207,900,000)  *
          *       2003                        (218,000,000)  *
          *       2004                        (229,300,000)  *
          *       2005                        (241,200,000)  *
          *       2006                        (254,100,000)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
***************************************************************************
*Fiscal    Probable Savings/(Cost) from    Probable Revenue Gain/(Loss)   *
* Year        Foundation School Fund        from General Revenue Fund     *
*                      0193                            0001               *
*  2002                    $(191,500,000)                   $(16,400,000) *
*  2003                     (200,700,000)                    (17,300,000) *
*  2004                     (211,100,000)                    (18,200,000) *
*  2005                     (222,100,000)                    (19,100,000) *
*  2006                     (233,900,000)                    (20,200,000) *
***************************************************************************
  
Fiscal Analysis
  
This bill increases the Foundation School Program weight for bilingual
education or English as a Second Language (ESL) programs from 0.1 to
0.2. This legislation would take effect September 1, 2001.
  
  
Methodology
  
This estimate was developed from cost analyses provided by the Texas
Education Agency (TEA).  The TEA analysis concluded that the state aid
requirement would increase by $191.5 million in fiscal 2002 and by
$200.7 million in fiscal 2003.  In addition, raising the weight to 0.2
would also reduce revenues to be expected from property-wealthy
districts by about $16.4 million in fiscal 2002 and by $17.3 million in
fiscal 2003.
  
  
Local Government Impact
  
School districts would experience an increase in revenue equal to the
financial impact to the state.
  
  
Source Agencies:   701   Texas Education Agency
LBB Staff:         JK, CT, RN