LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 5, 2001
TO: Honorable Paul Sadler, Chair, House Committee on Public
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB723 by Turner, Sylvester (Relating to an allotment to
school districts for use by teachers in purchasing
supplies used in classroom teaching.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB723, As Introduced: negative impact of $(328,000,000) 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 $(162,000,000) *
* 2003 (166,000,000) *
* 2004 (171,000,000) *
* 2005 (175,000,000) *
* 2006 (180,000,000) *
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All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* Foundation School Fund *
* 0193 *
* 2002 $(162,000,000) *
* 2003 (166,000,000) *
* 2004 (171,000,000) *
* 2005 (175,000,000) *
* 2006 (180,000,000) *
*****************************************************
Fiscal Analysis
The bill adds Section 42.159, Education Code, to provide a teaching
supplies allotment of $400 per full time equivalent (FTE) teacher to
local school districts. Teachers could use the funds to purchase
teaching supplies with no limit as to the type of supplies or the
suppliers from which the teacher can purchase. The commissioner of
education would be granted rule-making authority to implement the new
provision including the authority to impose reporting requirements and
methodology for calculating the number of FTE teachers in a district.
Methodology
The Texas Education Agency reports that about 268,000 FTE teachers would
have qualified for the $400 allotment, if the bill were in effect in
school year 1999-2000. Based on rates from the last five years, the
average annual growth rate in the number of teachers is about 2.7%.
Assuming this growth rate continued, the cost of the allotment would be
approximately $113.0 million in fiscal year 2002 and would increase to
approximately $126.0 million by fiscal year 2006.
The increase in the cost of Tier I represented by the new allotment would
also result in an increase in obligation under Tier II of the Foundation
School Program. This increase would be approximately $49.0 million in
fiscal year 2002 and $54.0 million in fiscal year 2006.
Local Government Impact
Certain school districts would receive additional state aid as reflected
in the state impact table above.
Source Agencies: 701 Texas Education Agency
LBB Staff: JK, CT, PF, RN