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:  HB2707  by Reyna, Arthur (Relating to prekindergarten
               programs for public school students.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB2707, As Introduced:  negative impact of $(200,000,000) through     *
*  the biennium ending August 31, 2003.                                  *
*                                                                        *
*  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                *
          *       2002                       $(100,000,000)  *
          *       2003                        (100,000,000)  *
          *       2004                        (100,000,000)  *
          *       2005                        (100,000,000)  *
          *       2006                        (100,000,000)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                     Foundation School Fund         *
         *                              0193                  *
         *      2002                           $(100,000,000) *
         *      2003                            (100,000,000) *
         *      2004                            (100,000,000) *
         *      2005                            (100,000,000) *
         *      2006                            (100,000,000) *
         *****************************************************
  
Fiscal Analysis
  
The bill would entitle districts currently receiving funds under the
Texas Education Code 29.155 grant pre-kindergarten grant program
provision to Foundation School Program funds for those programs.
  
  
Methodology
  
The current state obligation under the grant program is $100 million per
year; this bill would shift that obligation to the Foundation School
Program.  This legislation does not abolish the current grant program,
and it is assumed that the current program would continue and that the
grant funds made available by this bill would be used to fund a new
cohort of districts.
  
  
Local Government Impact
  
Assuming continuation of the current level of funding in the grant
program, school districts would have access to additional grant funds
for pre-kindergarten programs.
  
  
Source Agencies:   701   Texas Education Agency
LBB Staff:         JK, CT, UP