LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 16, 2001
  
  
          TO:  Honorable Paul Sadler, Chair, House Committee on Public
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1427  by Hochberg (Relating to funding for
               extraordinary special education expenses.), As Introduced
  
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*  No fiscal implication to the State is anticipated.                    *
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The bill creates a new set-aside from the special education allotment in
the Foundation School Program (FSP) to fund a reimbursement program to
school districts for students in special education whose service costs
exceed twice the funds provided by the special education allotment.  The
bill does not create an entitlement; districts must apply for available
funds.  The limits the set-aside to an amount not to exceed an amount
specified in the General Appropriations Act.  The commissioner is
authorized to adopt rules to implement the reimbursement program.
  
Local Government Impact
  
To the extent that the special education allotment is reduced to provide
funds to implement the provisions of the bill, school districts will
receive reduced FSP payments and school districts eligible for and
receiving funds under the bill will receive increased FSP payments.
  
  
Source Agencies:   701   Texas Education Agency
LBB Staff:         JK, CT, PF, UP