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:  HB934  by Solis, Jim (Relating to eligibility of school
               districts for state assistance with payment of existing
               debt.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB934, As Introduced:  negative impact of $(469,762) 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                           $(234,014)  *
          *       2003                            (235,748)  *
          *       2004                            (232,518)  *
          *       2005                            (179,680)  *
          *       2006                            (178,919)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                     Foundation School Fund         *
         *                              0193                  *
         *      2002                               $(234,014) *
         *      2003                                (235,748) *
         *      2004                                (232,518) *
         *      2005                                (179,680) *
         *      2006                                (178,919) *
         *****************************************************
  
Fiscal Analysis
  
The bill authorizes the Texas Education Agency to make existing debt
allotment (EDA) payments to districts that either made bond payments in
the 1998-99 school year or levied taxes to pay for the bond payments in
1998-99.  Under current law, districts must levy and collect taxes for
the interest and principal of eligible bonds.
  
  
Methodology
  
This bill would render four additional school districts eligible for EDA
funding.  However, only one district has eligible bond payments in the
years beginning with fiscal year 2002.  The additional EDA aid to this
district is estimated at $234,014 in 2002, $235,748 in 2003 and
decreasing each year thereafter.
  
  
Local Government Impact
  
Districts would have the discretion to levy and collect taxes or pay for
eligible bond payments using other sources without jeopardizing their
state aid.  In addition, it would change the eligibility status of one
school district.  This district would be required to reduce local debt
service taxes by an amount commensurate with its increased state aid.
  
  
Source Agencies:   701   Texas Education Agency
LBB Staff:         JK, CT, JM