LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 28, 2001
  
  
          TO:  Honorable Teel Bivins, Chair, Senate Committee on
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1461  by Nelson (Relating to state assistance to school
               districts for new instructional facilities.), As
               Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB1461, As Introduced:  negative impact of $(50,000,000) through      *
*  the biennium ending August 31, 2003.                                  *
*                                                                        *
*  The bill would make no appropriation but could provide the legal      *
*  basis for an appropriation of funds to implement the provisions of    *
*  the bill.                                                             *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                        $(25,000,000)  *
          *       2003                         (25,000,000)  *
          *       2004                         (25,000,000)  *
          *       2005                         (25,000,000)  *
          *       2006                         (25,000,000)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                     Foundation School Fund         *
         *                              0193                  *
         *      2002                            $(25,000,000) *
         *      2003                             (25,000,000) *
         *      2004                             (25,000,000) *
         *      2005                             (25,000,000) *
         *      2006                             (25,000,000) *
         *****************************************************
  
Fiscal Analysis
  
This bill relates to funding for the New Instructional Facilities
Allotment (NIFA).  It revises Section 42.158 of the Texas Education Code
(TEC) by amending Subsection (a), increasing the allocation per pupil
from $250 to $500.  It also amends Subsection (d) by eliminating the $50
million limit to the total biennial appropriation and removes any
potential proration.
  
  
Methodology
  
The fiscal year 2001 cost for the New Instructional Facilities Allotment
will approximately equal the appropriated amount of $25 million. Because
the bill would double the allotment per pupil, it is assumed that the
cost to the state would approximately double, increasing from $25
million to about $50 million for each year of the biennium.   Because
the bill removes the appropriation limit ($25 million per year) and the
provision that allows the commissioner of education to prorate funding
if the appropriation does not meet the full entitlement cost, the actual
cost to the state could be higher.
  
  
Local Government Impact
  
School districts would experience increased state aid as reflected in the
state fiscal impact table above.
  
  
Source Agencies:   701   Texas Education Agency
LBB Staff:         JK, CT, PF, RN