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: HB3269 by McCall (Relating to the equalized wealth level under the public school finance system.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB3269, As Introduced: negative impact of $(1,263,000,000) * * 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 $(631,000,000) * * 2003 (632,000,000) * * 2004 (636,000,000) * * 2005 (648,000,000) * * 2006 (710,000,000) * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Savings/(Cost) from * * Foundation School Fund * * 0193 * * 2002 $(631,000,000) * * 2003 (632,000,000) * * 2004 (636,000,000) * * 2005 (648,000,000) * * 2006 (710,000,000) * ***************************************************** Fiscal Analysis The bill increases the Tier II guaranteed yield from $24.99 to $26.78 and the equalized wealth level from $295,000 to $320,000. The bill increases the cost of the Foundation School Program both by increasing the amount of state aid to which school districts are entitled and also by increasing the Chapter 41 wealth threshold. Methodology The Texas Education Agency provided information indicating a net impact to state aid of approximately $630 million in each year of the 2002-03 biennium. The cost implications are reflected as increased demands on Fund 193, Foundation School Fund. Local Government Impact Local school districts would realize increases in revenue available for expenditure. Source Agencies: 701 Texas Education Agency LBB Staff: JK, CT, UP