LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 2, 2001
TO: Honorable Paul Sadler, Chair, House Committee on Public
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB865 by Dutton (Relating to the establishment of basic
skills academies in certain school districts.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB865, As Introduced: negative impact of $(68,630,400) 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 $(34,315,200) *
* 2003 (34,315,200) *
* 2004 (34,315,200) *
* 2005 (34,315,200) *
* 2006 (34,315,200) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* General Revenue Fund *
* 0001 *
* 2002 $(34,315,200) *
* 2003 (34,315,200) *
* 2004 (34,315,200) *
* 2005 (34,315,200) *
* 2006 (34,315,200) *
*****************************************************
Fiscal Analysis
The bill would require Houston Independent School District (HISD) or any
other district with an enrollment in excess of 190,000 to establish a
basic skills academy at certain elementary schools. Academies would be
established at any elementary school with more than 20 students eligible
for special education or is identified as low performing. The academies
would serve students in grades three though six.
The Texas Education Agency (TEA) would be required to establish a level
of basic skills for third though sixth grades. The campus would
administer a diagnostic test to each third grade student to determine the
student's proficiency in basic skills. Students not meeting the stated
level of proficiency would be placed in the basic skills academy.
For each school year a school district would be entitled to $4,000 in
additional state funding for each student in a basic skills academy.
The bill stipulates that this additional state aid would be derived from
the net proceeds of the state lottery. Currently the net proceeds from
the state lottery are appropriated to the TEA as a method of finance for
the Foundation School Program.
Methodology
TEA estimates, based upon 1999-00 data, that 222 campuses in HISD would
be required to have an academy. Approximately 63,547 students are
enrolled in grades three through six on these campuses. It is estimated
that approximately 15%, (or 9,532) of these students would not meet the
proficiency standard. While the bill's language is based on
enrollment, it is assumed that the funds would be distributed on an
average daily attendance basis. Attendance is estimated at 90%.
Local Government Impact
The local costs associated with the basic skills academies would probably
be offset by state aid.
Source Agencies: 701 Texas Education Agency
LBB Staff: JK, CT, PF, UP