LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session February 6, 2001 TO: Honorable Paul Sadler, Chair, House Committee on Teacher Health Insurance, Select FROM: John Keel, Director, Legislative Budget Board IN RE: HB50 by Chavez (Relating to a state funding allotment for health insurance and other health care benefits for public school employees.), As Introduced ************************************************************************** * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * * * * The annual cost of this bill to the state depends upon the amount * * set for the Employee Health Care Benefits Allotment under Tier I * * of the Foundation School Program, which is not specified in the * * bill. Were the allotment set at $100 per student in average daily * * attendance (ADA), the cost to the state would be approximately * * $390 million per year, beginning in fiscal year 2003. * ************************************************************************** The bill adds a new section (Section 42.159) to the Education Code, which would provide an Employee Health Care Benefits Allotment under Tier I of the Foundation School Program. The bill does not specify an allotment amount per student in average daily attendance (ADA). School districts would only be allowed to use the allotment to increase the district financial contribution for employee health insurance coverage or other health care benefits or to pay costs supplementary to the district's regular health insurance program. The bill exempts the allotment from being included in the calculation of weighted average daily attendance used in Tier II funding under the Foundation School Program. Local Government Impact Local school districts would experience savings to the extent that the district used the state funds provided for the sole purpose of increasing contributions to employee health insurance programs. Source Agencies: 323 Teacher Retirement System, 701 Texas Education Agency LBB Staff: JK, CT, RN, PF