LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 10, 2001
TO: Honorable Paul Sadler, Chair, House Committee on Public
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2879 by Sadler (Relating to school finance.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2879, As Introduced: negative impact of $(5,021,000) 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 $(2,492,000) *
* 2003 (2,529,000) *
* 2004 (2,352,000) *
* 2005 (2,386,000) *
* 2006 (2,321,000) *
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All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* Foundation School Fund *
* 0193 *
* 2002 $(2,492,000) *
* 2003 (2,529,000) *
* 2004 (2,352,000) *
* 2005 (2,386,000) *
* 2006 (2,321,000) *
*****************************************************
Fiscal Analysis
The bill makes slight adjustments to two elements of the Foundation
School Program funding formula: it increases the Tier II guaranteed
yield by one cent to $25.00 and increases the equalized wealth level by
one dollar to $295,001.
The bill also directs the Commissioner of Education to develop a
equitable formula to fund the cohort of districts commonly referred to
as "gap" districts; these are districts with property wealth greater
than the guaranteed yield and less than the equalized wealth level.
Implementation of such a formula would have a fiscal impact on the state
and to the Foundation School Program. To the extent that the formula
generates a similar magnitude of increased funding as the formula
adjustments contained in the legislation, the fiscal impact to the state
would be limited.
Methodology
The approximately $2.5 million annual cost is the impact of the formula
adjustments identified above. This estimate does not include the cost
of the prospective funding formula for "gap" districts.
Local Government Impact
School districts would experience a slight increase in available revenue.
Source Agencies: 701 Texas Education Agency
LBB Staff: JK, CT, UP