LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session February 26, 1997 TO: Honorable Teel Bivins, Chair IN RE: Senate Bill No. 465 Committee on Education By: Harris Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB465 ( Relating to the authority of a school district to charge a fee for transporting certain students.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB465-As Introduced No fiscal implication to the State is anticipated. Bill Summary The bill would permit local school districts to charge a reasonable fee for the transportation of a student who lives within two miles of school, except for cases in which 42.155(d) mandates free transportation for less than two miles under hazardous circumstances. The bill would not permit a fee if the district receives transportation funding from the state for that student. This legislation would take effect for the 1997-98 school year. Administrative Costs to Local Government Local school districts would not incur any net costs as a result of this bill. Districts that are currently providing free transportation to students living within two miles of their schools would be able to recover some or all of the costs of this service, resulting in a relative increase in revenue. The revenue gained depends upon the number of districts that currently provide this service without fee and the number of these districts that elect to impose a fee. According to research conducted under the direction of Texas Center for Educational Research (TCER), fewer than 5% of the state's school districts are providing free transportation for students who live within two miles of school. Any school districts that initiate transportation services to students living within two miles of their schools as a result of this legislation would be expected to recoup the cost of the service, resulting in no fiscal impact to these districts. The marginal revenue gain to districts that begin collecting a fee is approximately $1,310.40 per student per year. This figure is derived through the following calculation: Average cost per mile in 1995-96 ($1.82) x distance (4 miles round trip maximum) x number of days per school year (180 days). Continuing Fiscal Implications - Local The fiscal implications described above would be likely to continue beyond 2002. Source: Agencies: 701 Texas Education Agency - Administration TCE Texas Center for Educational Research LBB Staff: JK ,LP ,DH ,GJ