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: HB3525 by Hochberg (Relating to school district property
values.), As Introduced
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3525, As Introduced: positive impact of $50,237,000 through the *
* biennium ending August 31, 2003. *
**************************************************************************
The bill amends Section 403.302 of the Government Code to require the
Comptroller to report to the Commissioner of Education either the local
value of property or the Comptroller's determination of value for all
school districts in an appraisal district.
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $0 *
* 2003 50,237,000 *
* 2004 52,749,000 *
* 2005 55,387,000 *
* 2006 58,156,000 *
****************************************************
All Funds, Five-Year Impact:
***************************************************************************
*Fiscal Probable Savings/(Cost) to Probable Revenue Gain/(Loss) to *
* Year Foundation School Fund School Districts *
* 0193 *
* 2002 $0 $0 *
* 2003 50,237,000 (50,237,000) *
* 2004 52,749,000 (52,749,000) *
* 2005 55,387,000 (55,387,000) *
* 2006 58,156,000 (58,156,000) *
***************************************************************************
Fiscal Analysis
The Comptroller's current practice of basing value determinations on the
validity of values in each school district would be prohibited.
Methodology
The fiscal implications were estimated by the Comptroller's office based
on the assignment of state values for every school district in any
appraisal district for which, in the most recent completed study (the
1999 Property Value Study), the Comptroller certified any combination of
state and local values. If more than one school district participated in
the appraisal district, and even one school district had been assigned
state value, every district was assigned state value for the purpose of
this analysis. Using this methodology, it is anticipated that school
districts would experience an increase in wealth and a decrease in state
aid.
The differences between the state funding as the study is currently done
and as it would be done under the bill were summed and projected over the
2002-2006 period. Additional costs could occur pursuant to equity
lawsuits from districts that, standing alone, would have received local
value, but would be assigned state value because of this bill. These
lawsuits would attempt to recover lost school district funding. Costs
arising from these lawsuits cannot be estimated.
Local Government Impact
No fiscal implication to units of local government is anticipated.
The bill would only impact valuations reported by the Comptroller's
office to the Texas Education Agency for school finance purposes.
Source Agencies: 701 Texas Education Agency, 304 Comptroller of
Public Accounts
LBB Staff: JK, CT, BR