LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 30, 2001
  
  
          TO:  Honorable Paul Sadler, Chair, House Committee on Public
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1827  by Tillery (Relating to the boundaries of school
               districts located in home-rule municipalities.), As
               Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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To the extent that shifts in value result in some portion of the tax base
no longer fully contributing to the school finance system, there would
be an impact on General Revenue. In general, changes in school district
boundaries could shift the taxable property associated with each school
district, but it would not change the aggregate value of property in the
state that is used in school finance.  There is a potential that the
shifting of boundaries would result in movement of property values that
would cause a district to become property wealthy for purposes of
Chapter 41, or for a property-wealthy district to become poor and no
longer have an obligation.
  
Local Government Impact
  
Costs could be extensive for the annexation process and potential
appeals. The boards of trustees of school districts affected by
annexation would have to  execute agreements and file them with the
commissioner's courts of each county in which school districts contained
territory.
  
  
Source Agencies:   701   Texas Education Agency
LBB Staff:         JK, CT, PF