LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 30, 2001
  
  
          TO:  Honorable Teel Bivins, Chair, Senate Committee on
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1490  by Shapleigh (Relating to the relationship
               between certain funding elements of the Foundation School
               Program.), As Introduced
  
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*  An indeterminate fiscal implication to the State is anticipated.      *
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The bill creates a statutory linkage between the funding elements of the
Foundation School Program, and establishes a standard to be followed in
appropriating funds for the program.  The bill would require that any
increase in the basic allotment, the tier two guaranteed level, or the
equalized wealth level be accompanied by an increase in the other
elements to reduce to an insignificant level the remaining inequities in
the school finance system.  The bill would require that at least 85% of
students must be in districts that receive tier two funding.

If any one of the elements is adjusted, the bill could have a significant
fiscal impact on the State.  The magnitude of the impact depends on the
funding element adjustment under consideration.
  
Local Government Impact
  
School districts would benefit from any increase in funding elements
resulting from this legislation.
  
  
Source Agencies:   701   Texas Education Agency
LBB Staff:         JK, CT, PF, RN