LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 1, 1997
TO: Honorable Irma Rangel, Chair IN RE: House Bill No. 1940
Committee on Higher Education By: Price
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB1940 ( Relating
to the Texas Academy of Leadership in the Humanities at Lamar
University at Beaumont.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB1940-As Introduced
Implementing the provisions of the bill would result in a net
negative impact of $(402,600) to General Revenue Related Funds
through the biennium ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
The bill would amend the section of the Texas Education Code
establishing the Texas Academy of Leadership in the Humanities
at Lamar University at Beaumont. The bill would clarify the
mission of the academy, make it eligible for allotments under
the Foundation School Program, and address a number of administrative
and financial issues.
Methodolgy
Currently, the Academy enrollment is 160 students. It is assumed
that enrollment would increase by 40 students a year.
Academy
students would be eligible for funding under the Foundation
School Program. However, the population likely to be admitted
to the academy may not be comparable to that of a typical school
district. It is assumed students at the academy would require
fewer special education services, would not receive funding-eligible
career and technology education, would not generate transportation
funding, would not participate in the national school lunch
program (the funding basis for compensatory education), and
would not be limited in English proficiency.
It is assumed
that the eligible students would only qualify for regular program
funding. To the extent that a student leaves a public school,
such as Beaumont ISD, for the academy, the state cost of the
Foundation School Program would be reduced. If a Beaumont ISD
student in the regular program were to leave the public school,
the state would save about $2,624 in regular program allotment.
Academy
students would also generate a cost to the state based on Foundation
School Program allotments and the local share of the program
attributable to Beaumont ISD. The funding calculation would
be comparable to the mathematics and science academy at the
University of North Texas. A comparable calculation would result
in a local share of approximately $2,533 per ADA, based on Beaumont
ISD property wealth. The small district adjustment would significantly
increase the calculated allotment amount, because of the small
size of the academy. The estimated Foundation School Program
cost per ADA for 350 students would be $3,448. Therefore, the
allocation to the academy is estimated to be $915 per ADA, or
$320,250.
The Academy is also eligible to receive formula
funding for college credit courses completed by Academy students,
and could receive additional formula funding if the number of
college credit courses increases.
The Academy also receives
special item funding of approximately $43,000. Additional special
item funding could be provided for the increased enrollment
and/or additional scholarships.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Change in Number
Savings/(Cost) of State
from Foundation Employees from
School Fund FY 1997
0193
1998 ($183,000) 8.0
1998 (219,600) 8.0
2000 (256,200) 8.0
2001 (292,800) 8.0
2002 (320,250) 8.0
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 ($183,000)
1999 (219,600)
2000 (256,200)
2001 (292,800)
2002 (320,250)
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No fiscal implication to units of local government is anticipated.
Source: Agencies: 701 Texas Education Agency - Administration
758 Texas State University System
781 Higher Education Coordinating Board
LBB Staff: JK ,LP ,DB