LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 8, 2001 TO: Honorable Teel Bivins, Chair, Senate Committee on Education FROM: John Keel, Director, Legislative Budget Board IN RE: SB146 by Wentworth (Relating to the basic allotment under the Foundation School Program for mid-sized school districts.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB146, As Introduced: negative impact of $(29,400,000) 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 $(14,100,000) * * 2003 (15,300,000) * * 2004 (15,500,000) * * 2005 (15,600,000) * * 2006 (15,600,000) * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Revenue Gain/(Loss) from * * General Revenue Fund * * 0001 * * 2002 $(14,100,000) * * 2003 (15,300,000) * * 2004 (15,500,000) * * 2005 (15,600,000) * * 2006 (15,600,000) * ***************************************************** Fiscal Analysis Under current law, school districts identified as property-wealthy and subject to the requirements of Chapter 41 are not eligible for the mid-size adjustment. The bill grants the adjustment to these districts. This adjustment compensates school districts for the higher fixed costs of operating schools in less populated areas. Its based on the difference between an average daily attendance of 5,000 and the school district's actual average daily attendance. Methodology A school finance model was run to identify the fiscal impact of applying the mid-size school adjustment to school districts subject to Chapter 41. Local Government Impact There would be a increase in the amount of local tax revenue that certain districts would be permitted to keep. This effectively results in additional net revenue to the districts. Source Agencies: 701 Texas Education Agency LBB Staff: JK, CT, PF, RN