Estimated Two-year Net Impact to General Revenue Related Funds for SB1, Committee Report 1st House, Substituted : a negative impact of between ($2,000,000,000) and ($4,000,000,000) through the biennium ending August 31, 2023, dependent on analysis by the Comptroller of Public Accounts in the June 1, 2022, Biennial Revenue Estimate update.
The bill's provisions would result in a net decrease of between ($2,000,000,000) and ($4,000,000,000) to the estimate of General Revenue Related funds available for certification in the Biennial Revenue Estimate for the 87th Legislature, Second Called Session.
The bill would amend the Education Code to require the Commissioner of Education reduce each school district's maximum compressed tax rate (MCR) by an equal amount for the 2022-23 school year using funds appropriated for that purpose. If a school district's MCR would be less than 90.0 percent of another district's reduced MCR, the first district's MCR would instead be equal to 90.0 percent of the other district's MCR.
The bill would provide that for the purposes of determining school district funding for the 2022-23 school year, certain references in the Education Code and the Tax Code to a school district's MCR would mean the reduced MCR determined for the district by the Commissioner. The bill would require the reduced MCR, as provided by the bill, be excluded in the calculation of a school district's prior year maximum compressed rate (PYMCR) for the 2023-24 school year.
The bill would require the Comptroller of Public Accounts (CPA) to submit an update on the Biennial Revenue Estimate (BRE) to the Legislature by June 1, 2022.
The bill would appropriate General Revenue (Foundation School Fund 193) to the Texas Education Agency (TEA) for the purpose of reducing each district's MCR for the 2022-23 school year. The appropriation would equal the lesser of $4.0 billion or $2.0 billion plus 50 percent of the June 1, 2022 CPA estimate of the FY 2023 ending balance of General Revenue Related funds available for certification that is more than $500.0 million higher than than the estimate of that balance made by the CPA in August 2021.