LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 4, 2001
TO: Honorable Paul Sadler, Chair, House Committee on Public
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB406 by Denny (Relating to funding of special education
programs under the public school finance system.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB406, As Introduced: negative impact of $(36,600,000) 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:
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* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(18,200,000) *
* 2003 (18,400,000) *
* 2004 (18,600,000) *
* 2005 (18,900,000) *
* 2006 (19,100,000) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Probable Revenue Gain/(Loss) *
* Year Foundation School Fund from General Revenue Fund *
* 0193 0001 *
* 2002 $(17,600,000) $(600,000) *
* 2003 (17,800,000) (600,000) *
* 2004 (18,000,000) (600,000) *
* 2005 (18,200,000) (700,000) *
* 2006 (18,400,000) (700,000) *
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Fiscal Analysis
The bill increases the funding weights in the Foundation School Program
for three special education instructional arrangements, and divides one
of those three into two different categories. Specifically, the bill
raises the funding of the hospital class weight from 3.0 to 4.0, an
increase of 33.3%. It also increases the weight for students in
residential care and treatment facilities, but whose parents are not
resident in the district, from 4.0 to 5.0, an increase of 25%. Lastly,
the bill increases the funding weight for students reside in a state
school from 2.8 to either 4.0 if served on the state school campus or
5.0 if served on a school district campus.
Methodology
The financial impact of the change in the allotment weights was estimated
by the Texas Education Agency. The estimate indicates that the state
aid requirement would increase by $17.6 million in fiscal year 2002 and
by $17.8 million in fiscal year 2003. In addition, the change would
also reduce revenues to be expected from property-wealthy districts by
about $0.6 million in fiscal year 2002 and by $0.6 million in fiscal
year 2003.
Local Government Impact
School districts would receive or retain additional revenue as reflected
in the state fiscal impact table.
Source Agencies: 701 Texas Education Agency
LBB Staff: JK, CT, RN