LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 10, 2001
  
  
          TO:  Honorable Teel Bivins, Chair, Senate Committee on
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1447  by Shapleigh (Relating to school finance issues
               involving amounts withheld from special allotments under
               the Foundation School Program.), As Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill amends statute to clarify the calculation for set-asides from
allotments within the Foundation School Program.   Under current
practice at the Texas Education Agency, state aid for school districts
funded under chapter 42 of the Texas Education Code is reduced to
account for the cost of programs funded as set-asides.  This bill would
require that Chapter 41 school districts also experience a reduction in
revenue to fund the set-aside programs.   The  Legislative Budget
Board's school finance model has historically taken a similar approach
to the one delineated in the bill, and therefore has taken into account
the recapture associated with the bill's methodology.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   701   Texas Education Agency
LBB Staff:         JK, CT, UP