LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 9, 2001 TO: Honorable Paul Sadler, Chair, House Committee on Public Education FROM: John Keel, Director, Legislative Budget Board IN RE: HB604 by George (Relating to the small and mid-sized district adjustment under the public school finance system.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB604, As Introduced: negative impact of $(29,400,000) 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. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $(14,100,000) * * 2003 (15,300,000) * * 2004 (15,500,000) * * 2005 (15,600,000) * * 2006 (15,600,000) * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Revenue Gain/(Loss) from * * General Revenue Fund * * 0001 * * 2002 $(14,100,000) * * 2003 (15,300,000) * * 2004 (15,500,000) * * 2005 (15,600,000) * * 2006 (15,600,000) * ***************************************************** Fiscal Analysis Under current law, school districts identified as property-wealthy and subject to the requirements of Chapter 41 are not eligible for the mid-size adjustment. The bill grants the adjustment to these districts. Methodology A school finance model was run to identify the fiscal impact of applying the mid-size school adjustment to school districts subject to Chapter 41. The cost represents the resulting reduction in recapture payments from the eligible Chapter 41 districts. Local Government Impact There would be a increase in the amount of local tax revenue that certain districts would be permitted to keep. Source Agencies: 701 Texas Education Agency LBB Staff: JK, CT, PF, RN