LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                            February 16, 2001
  
  
          TO:  Honorable Teel Bivins, Chair, Senate Committee on
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB490  by Ellis, Rodney (Relating to the composition of
               the permanent school fund, the available school fund, and
               the public school employee health insurance fund and to
               transfers from the permanent school fund to the
               available school fund and the public school employee
               health insurance fund.), As Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
*                                                                        *
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The bill creates a new fund in the treasury, the Public School Employee
Health Insurance Fund and directs that 20% of returns from the Permanent
School Fund, as defined by HJR 54 be deposited to the credit of this new
fund once certain conditions are met.

The bill does not take effect unless voters approve the constitutional
amendment proposed by HJR 54.
  
Local Government Impact
  
According to the Texas Education Agency, in 1998-99, school districts
contributed an estimated $790 million on employee health insurance
benefits. This legislation does not address the specifics of any school
district employee health insurance program.
  
  
Source Agencies:   323   Teacher Retirement System, 701   Texas
                   Education Agency, 304   Comptroller of Public Accounts
LBB Staff:         JK, CT, PF, UP