LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 21, 1999
TO: Honorable Paul Sadler, Chair, House Committee on Public
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2358 by Olivo (relating to open-enrollment charter
schools), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Fundsfor *
* HB2358, As Introduced: positive impact of $1,261,000 through the *
* biennium ending August 31, 2001. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $630,500 *
* 2001 630,500 *
* 2002 630,500 *
* 2003 630,500 *
* 2004 630,500 *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Revenue Change in Number of *
* Year Savings/(Cost) from Gain/(Loss) from State Employees from *
* General Revenue Fund General Revenue Fund FY 1999 *
* for Evaluations for Reimbursement to *
* 0001 State Auditor *
* 0001 *
* 2000 $(136,000) $766,500 8.3 *
* 2001 (136,000) 766,500 8.3 *
* 2002 (136,000) 766,500 8.3 *
* 2003 (136,000) 766,500 8.3 *
* 2004 (136,000) 766,500 8.3 *
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Fiscal Analysis
The bill would prevent the State Board of Education from granting any new
open-enrollment charters.
The bill would require the Texas Education Agency, from funds
appropriated for that purpose, to reimburse an open-enrollment charter
school for the cost of the evaluation required by statute.
The State Auditor would be required to perform a financial audit of each
open-enrollment charter school at least once during the period for which
a charter is valid. This audit would take the place for the annual
financial audit required in statute for that year. The open-enrollment
charter school must reimburse the State Auditor for the cost of the
audit.
Methodology
This fiscal note assumes the evaluation required in this bill is
consistent with the previous evaluation of the charter school system.
The Texas Education Agency (TEA) had not previously required the charter
schools to pay for that evaluation. Assuming required the charter
schools to pay for such an evaluation and reimbursed the schools, the
total cost is estimated to be $136,000 a year.
The State Auditor assumes they would conduct 30 financial audits of
open-enrollment charter schools each year and would need an additional
8.3 FTEs.
Local Government Impact
The fiscal implication on open-enrollment charter schools would depend on
the amount the schools currently spend on their annual financial audit.
To the extent that the schools spend less than the $25,550 the state
auditor estimates it will cost, the schools would experience a cost
savings.
Source Agencies: TCER Texas Center for Educational Research, 701
Texas Education Agency - Administration
LBB Staff: JK, BB, PF