LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session May 14, 1999 TO: Honorable Teel Bivins, Chair, Senate Committee on Education FROM: John Keel, Director, Legislative Budget Board IN RE: HB3653 by Oliveira (Relating to compensatory education and accelerated instruction in public schools), As Engrossed ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB3653, As Engrossed: negative impact of $(400,000) 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. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $(200,000) * * 2001 (200,000) * * 2002 (200,000) * * 2003 (200,000) * * 2004 (200,000) * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Savings/(Cost) from * * Foundation School Fund * * 0193 * * 2000 $(200,000) * * 2001 (200,000) * * 2002 (200,000) * * 2003 (200,000) * * 2004 (200,000) * ***************************************************** Fiscal Analysis The bill would revise the definitions of at risk students in Section 29.081 of the Texas Education Code. The bill would add districts that did not participate in the federal free and reduced-price school lunch program in the preceding school year to the state compensatory education program. Districts that participated in the school lunch program, but where one or more campuses were not served under the program would also be able to seek funds for educationally disadvantaged students. The commissioner would adopt rules to determine the number of educationally disadvantaged students not counted in the federal free and reduced-price school lunch program. Methodology The Texas Education Agency estimates that the compensatory education inclusion of educationally disadvantaged students not served under the federal free and reduced-price school lunch program would cost the Foundation School Program (FSP) an additional $200,000 per year. Local Government Impact The bill would require some districts to alter their compensatory education services in accordance with revised definitions of at risk students. Costs would vary depending on the manner in which compensatory education services are currently provided by districts. Source Agencies: 701 Texas Education Agency - Administration LBB Staff: JK, CT, CW, RN