LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 25, 2001
  
  
          TO:  Honorable Rodney Ellis, Chair, Senate Committee on Finance
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB512  by Duncan (Relating to the investment and
               management of the permanent school fund.), As Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill is enabling legislation for the Permanent School Fund Investment
Board (PSFIB), created in SJR 20.  The legislation transfers the duties
and responsibilities regarding investment of the Permanent School Fund
from the State Board of Education to the PSFIB.

The Texas Education Agency estimates that each of the PSFIB's five voting
members would require travel reimbursements consistent with the State
Board of Education's $5,000 annual per member travel reimbursement
average.

The PSFIB is also authorized to employ staff.  This estimate assumes that
those costs would not be significantly more than the costs currently
associated with the Texas Education Agency staff charged with Permanent
School Fund investments activities.
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   701   Texas Education Agency, 304   Comptroller of
                   Public Accounts
LBB Staff:         JK, SD, UP