LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                               May 17, 2001
  
  
          TO:  Honorable Bill Ratliff, Lieutenant Governor,  Senate
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB218  by Shapiro (Relating to a financial accountability
               rating system for school districts.), As Passed 2nd House
  
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*  No fiscal implication to the State is anticipated.                    *
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Local Government Impact
  
School districts would incur report dissemination expenses.  The bill
requires district financial management reports to be disseminated in a
manner prescribed by the Commissioner. The Texas Education Agency
estimates a total of 5 million copies of these reports at a statewide
cost to school districts of $940,000, or somewhat less than $1,000 per
district on average.

The bill also requires the board of trustees of each school district to
give notice of a hearing on the report to owners of real property in the
district and to parents of district students.  It is assumed that
parents could be notified through take-home communications provided to
students, and property owners through a public notice issued to local
news media.  If a board of trustees were to notify all property owners
through a postal mailing, local costs could increase significantly.
  
  
Source Agencies:   701   Texas Education Agency
LBB Staff:         JK, CT, JM, PF