LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session Revision 1 April 10, 2001 TO: Honorable Paul Sadler, Chair, House Committee on Public Education FROM: John Keel, Director, Legislative Budget Board IN RE: HB2954 by Hardcastle (Relating to state funding for school districts that have not more than 400 students in average daily attendance.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB2954, As Introduced: negative impact of $(68,700,000) 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. * ************************************************************************** This revision corrects the statistics in the methodology section. General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $(34,200,000) * * 2003 (34,500,000) * * 2004 (34,200,000) * * 2005 (34,000,000) * * 2006 (34,100,000) * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Savings/(Cost) from * * Foundation School Fund * * 0193 * * 2002 $(34,200,000) * * 2003 (34,500,000) * * 2004 (34,200,000) * * 2005 (34,000,000) * * 2006 (34,100,000) * ***************************************************** Fiscal Analysis The bill creates an adjustment in Tier I of the Foundation School program to benefit school districts with fewer than 400 students in average daily attendance. Methodology The bill allows school districts to benefit from either the new small district adjustment or the existing small and mid-size adjustments, depending on which adjustment is the greater benefit. An estimated 28,000 students in 200 school districts are eligible for the adjustment. Local Government Impact Certain small school districts would experience an increase in state aid as the result of the bill. Source Agencies: 701 Texas Education Agency LBB Staff: JK, CT, UP