LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 14, 2001 TO: Honorable Teel Bivins, Chair, Senate Committee on Education FROM: John Keel, Director, Legislative Budget Board IN RE: SB108 by Lucio (Relating to the first and final days of instruction of a school year for public school students and to the first day of instruction of the first term of summer session for students at general academic teaching institutions.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB108, As Introduced: positive impact of $11,400,000 through the * * biennium ending August 31, 2003. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $5,700,000 * * 2003 5,700,000 * * 2004 5,700,000 * * 2005 5,700,000 * * 2006 5,700,000 * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Savings/(Cost) from * * Foundation School Fund * * 0193 * * 2002 $5,700,000 * * 2003 5,700,000 * * 2004 5,700,000 * * 2005 5,700,000 * * 2006 5,700,000 * ***************************************************** Fiscal Analysis The substantive section of the bill modifies language in Chapter 42 of the Education Code that provides for an alternate count of attendance in school districts with concentrations of migrant students. Under current law and rule, school districts with more than five percent migrant students are funded using a total count of attendance that is derived from the best four of six six-week reporting periods. The bill provides direction that an adjustment be available only to districts with both more than five percent migrant students and an absentee rate in the first six-week reporting period of the previous year of more than three percent. For those districts that meet the new conditions, the average daily attendance would be based on the best four six-week reporting periods only if school begins on or after September 1, and on the basis of the best five six-week reporting periods if school begins before September 1. Methodology Under current law, 206 districts receive positive adjustments to their average daily attendance (ADA) for concentrations of migrant students, and the total monetary impact of this adjustment on the state is $15,400,000. Under the bill, 99 districts would receive an ADA adjustment for migrant students. For these 99 districts, the maximum difference in attendance used for funding, calculated based on four six-week periods, would have a fiscal impact of about $9,700,000. Thus, the net savings in the Foundation School Program as a result of the bill is $5,700,000 ($15,400,000 minus $9,700,000). For these 99 school districts to receive the maximize state aid under this provision ($9,700,000 indicated above), they would have to set a school start date after September 1. For purposes of this fiscal note, all 99 school districts would were assumed to set the school start date after September 1. Local Government Impact Approximately 107 districts would lose revenue from the changes to eligibility for migrant student adjustments. The loss in funding would be $5,700,000. The remaining districts could maintain their current law level of funding only by adopting a school start date of September 1 or later. If the 99 remaining districts chose to start school before September 1, they would lose $4,300,000 per year in state support. There may be some local cost savings in air conditioning costs as a result of this bill. It is estimated districts would experience reduced district air conditioning costs that would normally be incurred in August, but that they would see some modest cost increases in the spring, resulting in a net savings of about $2,000,000 to $4,000,000 a year. Source Agencies: 701 Texas Education Agency, 304 Comptroller of Public Accounts, 781 Texas Higher Education Coordinating Board LBB Staff: JK, CT, PF, JM