LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 27, 1999
TO: Honorable Teel Bivins, Chair, Senate Committee on
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB875 by Shapiro (Relating to the financial
accountability of school districts), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB875, As Introduced: negative impact of $(1,451,714) 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:
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* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(880,923) *
* 2001 (570,791) *
* 2002 (560,291) *
* 2003 (560,291) *
* 2004 (560,291) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Change in Number of State *
* Year General Revenue Fund Employees from FY 1999 *
* 0001 *
* 2000 $(880,923) 5.5 *
* 2001 (570,791) 10.0 *
* 2002 (560,291) 10.0 *
* 2003 (560,291) 10.0 *
* 2004 (560,291) 10.0 *
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Fiscal Analysis
The bill would establish a financial accountability rating system for
school districts. System information would include independent audit
findings, TEA review of audit findings, and quantitative performance data
recorded in the Public Education Information Management System (PEIMS).
Districts would be rated according to standards established by the State
Board of Education.
The bill would create an advisory committee to assist the board in
implementing the financial accountability rating system.
Methodology
The Texas Education Agency estimates that development of a financial
indicator system and dissemination of district financial data would
create a new function for the agency and cost $880,923 in fiscal year
2000. The ultimate administration of the system in fiscal years
2001-2004 would require 10 full-time staff and cost over $500,000 per
year. These estimates were based on the current administration of the
Academic Excellence Indicator System (AEIS).
Local Government Impact
Districts would be required to disseminate a financial excellence
indicator report. The Texas Education Agency estimates that distribution
of the report would create statewide local costs of $300,000 per year.
Source Agencies: 701 Texas Education Agency - Administration
LBB Staff: JK, CT, CW