LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 27, 2001 TO: Honorable Paul Sadler, Chair, House Committee on Public Education FROM: John Keel, Director, Legislative Budget Board IN RE: HB1532 by Kuempel (Relating to the determination under the school finance system of the amount of collected taxes for certain school districts.), As Introduced ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** This bill amends the definition of tax collections to be used in computation of state aid for school districts that use an alternate date for taxes as authorized in Tax Code Section 26.135. It is believed that only one school district, New Braunfels ISD, uses alternate tax dates. Because the only district affected by this bill generally has an increasing tax base and increasing tax collections, the change in the year to which the taxes would be attributed will likely result in some increase in the measurement of tax effort and property values for the district. As a result, state aid to the district is would probably increase. The Texas Education Agency indicates that the absolute maximum potential state aid benefit, given 2001 fiscal year data, would be about $900,000 per year; however TEA has also stated that it is unlikely the bill would result in that large an adjustment of state funding. Local Government Impact The affected school district, New Braunfels ISD, would be required to report tax collections on a different basis (January through December) from the required basis for independent audit purposes (September through August). The district would likely have increased revenue from higher state aid, depending on the precise circumstances of the districts for the year in which credit is given. Source Agencies: 701 Texas Education Agency, 304 Comptroller of Public Accounts LBB Staff: JK, CT, PF, RN