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: HB3513 by Hamric (Relating to state programs for
assisting school districts with paying the costs of
public school facilities.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3513, 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. *
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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 adds a provision to Texas Education Code, Section 46.006, that
would require awarding facilities funding to districts that were not
awarded in the current biennium due to a lack of funding, prior to the
consideration of new applications. The bill increases the tax rate
limitation on the Existing Debt Allotment (EDA) from $0.12 to $0.29.
Methodology
First, the bill would require the prioritization of those districts that
did not receive an instructional facilities allotment in the previous
biennium (2000-01) due to lack of funding. After providing assistance to
these districts, the agency would then rank all remaining districts per
the established statute. This aspect of the bill would not have direct
fiscal implications for the Foundation School Program.
The provision of the bill that would increase the ceiling tax rate for
the EDA has a fiscal impact. In fiscal year 2001, the ceiling rate 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
increasing the EDA ceiling to $0.29 for fiscal year 2002 of $45,500,000
over current law costs, and $38,500,000 for fiscal year 2003.
Local Government Impact
For those districts that applied in the current biennium but were not
funded due to lack of funding, an application for funding, and a
demonstration that projects were not initiated due to the lack of
funding, would be required.
School districts receiving EDA funds 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, PF, JM