LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                            February 23, 2001
  
  
          TO:  Honorable Teel Bivins, Chair, Senate Committee on
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB28  by Shapiro (Relating to the equalized wealth level
               under the public school finance system.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB28, As Introduced:  negative impact of $(303,000,000) through       *
*  the biennium ending August 31, 2003.                                  *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                       $(148,000,000)  *
          *       2003                        (155,000,000)  *
          *       2004                        (156,000,000)  *
          *       2005                        (157,000,000)  *
          *       2006                        (158,000,000)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year    Probable Revenue Gain/(Loss) from   *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2002                           $(148,000,000) *
         *      2003                            (155,000,000) *
         *      2004                            (156,000,000) *
         *      2005                            (157,000,000) *
         *      2006                            (158,000,000) *
         *****************************************************
  
Fiscal Analysis
  
The bill amends Chapter 41 of the Education Code to increase the
equalized wealth level to $320,000 per weighted student.  This level
would change the number of districts identified as property-wealthy in
future years, and would change the costs to districts to reduce property
wealth when identified by the commissioner.

This legislation would take effect September 1, 2001.
  
  
Methodology
  
These projections assume statewide growth in students averaging about
1.7% as presented to the Legislative Budget Board in October 2000,
property value growth as projected by the Comptroller in October 2000,
and a tax rate increase of three cents above the 1999-2000 level.
  
  
Local Government Impact
  
Districts that are affected by the equalized wealth level threshold in
Chapter 41, Texas Education Code, would retain the amount of local
revenue that under present law is deposited in general revenue.  The
state revenue loss amounts shown in the above table would be local
revenue gains.
  
  
Source Agencies:   701   Texas Education Agency
LBB Staff:         JK, CT, RN