LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 24, 2001
TO: Honorable Paul Sadler, Chair, House Committee on Public
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB79 by Gallego (Relating to computation of the number
of educationally disadvantaged students in certain public
school districts.), Committee Report 1st House, as
amended
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB79, Committee Report 1st House, as amended: negative impact of *
* $(4,000,000) through the biennium ending August 31, 2003. *
* *
* 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 *
* 2002 $(2,000,000) *
* 2003 (2,000,000) *
* 2004 (2,000,000) *
* 2005 (2,000,000) *
* 2006 (2,000,000) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* Foundation School Fund *
* 0193 *
* 2002 $(2,000,000) *
* 2003 (2,000,000) *
* 2004 (2,000,000) *
* 2005 (2,000,000) *
* 2006 (2,000,000) *
*****************************************************
Fiscal Analysis
The bill would authorize the commissioner to adopt rules that would allow
for counting certain students for compensatory education allotment
purposes (Texas Education Code 42.152) that are educated in districts
that do not participate in the national school lunch program. Under
current law, the basis for funding most of the compensatory education
allotment is the best six-month average of participation in the national
school lunch program.
Methodology
At the present time, there are 81 school districts or open-enrollment
charter schools eligible for participation in the Foundation School
Program that do not participate in the national school lunch program.
For the 1999-2000 school year, there were 12,795 students enrolled at
those school districts and open-enrollment charter schools, of whom only
1,796 were reported as low-income.
Within the Foundation School Program, the average amount allotted by the
compensatory education allotment is $569. Because the districts that do
not participate in the school lunch program are generally small, an
average allotment of $700 is assumed for purposes of this estimate. In
addition, each student would generate additional funding through the
guaranteed yield program, estimated at approximately $400.
Because the funding implications of this bill hinge on the precise
wording of a rule that has yet to be adopted, this estimate can only
approximate the final result. If the low-income students reported in
1999-2000 at districts not participating in the national school lunch
program is a guide for the number of students that would qualify under a
commissioner rule, then the impact would be approximately $2 million in
additional state cost per year.
Local Government Impact
School districts would receive additional state aid as indicated above.
Source Agencies: 701 Texas Education Agency
LBB Staff: JK, CT, RN