LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 3, 2001
  
  
          TO:  Honorable Robert Junell, Chair, House Committee on
               Appropriations
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HJR111  by Heflin (Proposing a constitutional amendment
               to transfer to the economic stabilization fund certain
               excess earnings on investments of money in the general
               revenue fund.), As Introduced
  
**************************************************************************
*  No significant fiscal implication to the State is anticipated,        *
*  other than the cost of publication.                                   *
*                                                                        *
*  The cost to the state for publication of the resolution is $80,000.   *
**************************************************************************
  

This resolution would amend Section 49-g, Article III of the State
Constitution to require the Comptroller to transfer 75 percent of excess
interest and investment earnings from the General Revenue Fund, not
otherwise dedicated for a particular purpose by law, to the Economic
Stabilization Fund.  The resolution would define "excess earnings" as the
amount by which actual interest and investment earnings exceed the
estimated interest and investment earnings, as presented in the
Comptroller's biennial revenue estimate.  The transfer of excess General
Fund interest and investment earnings from the prior year would have to
occur no later than the 90th day of the fiscal year.

The proposed amendment would be submitted to voters at an election held
November 6, 2001.    
 
Since there is currently no estimated excess interest and investment
income from the General Fund, this resolution would have no fiscal
impact.  For illustrative purposes only, had this resolution been in
effect for fiscal 2000, the fiscal 2001 transfer would have been $36.5
million.
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   304   Comptroller of Public Accounts, 307   Secretary
                   of State
LBB Staff:         JK, SD, WP