LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
                                Revision 1
  
                              April 10, 2001
  
  
          TO:  Honorable Paul Sadler, Chair, House Committee on Public
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2954  by Hardcastle (Relating to state funding for
               school districts that have not more than 400 students in
               average daily attendance.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB2954, As Introduced:  negative impact of $(68,700,000) 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.                                                             *
**************************************************************************
  
This revision corrects the statistics in the methodology section.
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                        $(34,200,000)  *
          *       2003                         (34,500,000)  *
          *       2004                         (34,200,000)  *
          *       2005                         (34,000,000)  *
          *       2006                         (34,100,000)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                     Foundation School Fund         *
         *                              0193                  *
         *      2002                            $(34,200,000) *
         *      2003                             (34,500,000) *
         *      2004                             (34,200,000) *
         *      2005                             (34,000,000) *
         *      2006                             (34,100,000) *
         *****************************************************
  
Fiscal Analysis
  
The bill creates an adjustment in Tier I of the Foundation School program
to benefit school districts with fewer than 400 students in average
daily attendance.
  
  
Methodology
  
The bill allows school districts to benefit from either the new small
district adjustment or the existing small and mid-size adjustments,
depending on which adjustment is the greater benefit.   An estimated
28,000 students in 200 school districts are eligible for the adjustment.
  
  
Local Government Impact
  
Certain small school districts would experience an increase in state aid
as the result of the bill.
  
  
Source Agencies:   701   Texas Education Agency
LBB Staff:         JK, CT, UP