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: HB1346 by Tillery (Relating to state assistance with the payment of school district debt.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB1346, As Introduced: negative impact of $(84,000,000) 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. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $(45,500,000) * * 2003 (38,500,000) * * 2004 (38,500,000) * * 2005 (38,500,000) * * 2006 (38,500,000) * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Savings/(Cost) from * * Foundation School Fund * * 0193 * * 2002 $(45,500,000) * * 2003 (38,500,000) * * 2004 (38,500,000) * * 2005 (38,500,000) * * 2006 (38,500,000) * ***************************************************** Fiscal Analysis The bill removes the $0.12 tax rate limitation on the Existing Debt Allotment (EDA) in Texas Education Code, Chapter 46, Subchapter B. Methodology In fiscal year 2001, the ceiling rate for the EDA was raised from $0.12 to $0.29 per $100 of valuation, at a cost of approximately $62,000,000. Increasing property values and adjustments for student enrollment projections have resulted in an estimated cost of removing the EDA ceiling for fiscal year 2002 of $45,500,000 over current law costs, and $38,500,000 for fiscal year 2003. Local Government Impact No fiscal implication to units of local government is anticipated. School districts would be required to reduce related tax effort by a corresponding amount to reflect this increase in state assistance. Source Agencies: 701 Texas Education Agency LBB Staff: JK, CT, JM