LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 23, 1997
TO: Honorable Bill Ratliff, Chair IN RE: Senate Bill No. 1871
Committee on Finance By: Duncan
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB1871 ( Relating
to adjustments in the Investment Capital Fund.) this office
has detemined the following:
Biennial Net Impact to General Revenue Funds by SB1871-As Introduced
Implementing the provisions of the bill would result in a net
positive impact of $1,892,478 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 increase the amount set aside under the Texas
Education Code 42.152(l) for the Investment Capital Fund to
$5.0 million each fiscal year. Under current law, the amount
of the set aside is $2.5 million each fiscal year.
The bill
would take effect September 1, 1997.
Methodolgy
The bill would increase the amount withheld from the Foundation
School Program (FSP) Compensatory Education allotment and increase
the deduction from each district's allocation of the allotment.
The increase in the amount set aside would also decrease the
number of students in weighted average daily attendance (WADA)
used in the calculation of state aid under the FSP.
The
bill would approximately double the number of grants to be administered.
Administrative costs at the Texas Education Agency are estimated
at approximately $53,761 annually for one (1) additional FTE
to administer the grants. Total costs for these FTEs, include
salaries, benefits (calculated at 25.21% of base salary), travel
and operating expenses.
The increase in the set-aside out
of the Compensatory Education allotment would have no impact
on total state costs. The reduction in Foundation Payments
to districts would decrease Guaranteed Yield payments to districts
by about 40% of the decrease in the Foundation School Program
at an estimated $1,000,000 annually.
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 $946,239 1.0
1998 946,239 1.0
2000 946,239 1.0
2001 946,239 1.0
2002 946,239 1.0
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 $946,239
1999 946,239
2000 946,239
2001 946,239
2002 946,239
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No significant fiscal implication to units of local government
is anticipated.
Local school districts would realize a reduction
in Compensatory Education payments from the state. The amount
of the reduction will vary on a district basis depending on
local district wealth and the size of the districts' allotment
for Compensatory Education.
Source: Agencies: 701 Texas Education Agency - Administration
304 Comptroller of Public Accounts
LBB Staff: JK ,RR ,DH ,DD