LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 14, 2001
  
  
          TO:  Honorable Teel Bivins, Chair, Senate Committee on
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB108  by Lucio (Relating to the first and final days of
               instruction of a school year for public school students
               and to the first day of instruction of the first term of
               summer session for students at general academic teaching
               institutions.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB108, As Introduced:  positive impact of $11,400,000 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                           $5,700,000  *
          *       2003                            5,700,000  *
          *       2004                            5,700,000  *
          *       2005                            5,700,000  *
          *       2006                            5,700,000  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                     Foundation School Fund         *
         *                              0193                  *
         *      2002                               $5,700,000 *
         *      2003                                5,700,000 *
         *      2004                                5,700,000 *
         *      2005                                5,700,000 *
         *      2006                                5,700,000 *
         *****************************************************
  
Fiscal Analysis
  
The substantive section of the bill modifies language in Chapter 42 of
the Education Code that provides for an alternate count of attendance in
school districts with concentrations of migrant students.  Under current
law and rule, school districts with more than five percent migrant
students are funded using a total count of attendance that is derived
from the best four of six six-week reporting periods.  The bill provides
direction that an adjustment be available only to districts with both
more than five percent migrant students and an absentee rate in the first
six-week reporting period of the previous year of more than three
percent.  For those districts that meet the new conditions, the average
daily attendance would be based on the best four six-week reporting
periods only if school begins on or after September 1, and on the basis
of the best five six-week reporting periods if school begins before
September 1.

  
  
Methodology
  
Under current law, 206 districts receive positive adjustments to their
average daily attendance (ADA) for concentrations of migrant students,
and the total monetary impact of this adjustment on the state is
$15,400,000.  Under the bill, 99 districts would receive an ADA
adjustment for migrant students.  For these 99 districts, the maximum
difference in attendance used for funding, calculated based on four
six-week periods, would have a fiscal impact of about $9,700,000.  Thus,
the net savings in the Foundation School Program as a result of the bill
is $5,700,000  ($15,400,000 minus $9,700,000).

For these 99 school districts to receive the maximize state aid under
this provision ($9,700,000 indicated above), they would have to set a
school start date after September 1. For purposes of this fiscal note,
all 99 school districts would were assumed to set the school start date
after September 1.
  
  
Local Government Impact
  
Approximately 107 districts would lose revenue from the changes to
eligibility for migrant student adjustments.  The loss in funding would
be $5,700,000.  The remaining districts could maintain their current law
level of funding only by adopting a school start date of September 1 or
later.  If the 99 remaining districts chose to start school before
September 1, they would lose $4,300,000 per year in state support.

There may be some local cost savings in air conditioning costs as a
result of this bill.  It is estimated districts would experience reduced
district air conditioning costs that would normally be incurred in
August, but that they would see some modest cost increases in the
spring, resulting in a net savings of about $2,000,000 to $4,000,000 a
year.
  
  
Source Agencies:   701   Texas Education Agency, 304   Comptroller of
                   Public Accounts, 781   Texas Higher Education
                   Coordinating Board
LBB Staff:         JK, CT, PF, JM