LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 19, 2001
TO: Honorable Paul Sadler, Chair, House Committee on Public
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB450 by Duncan (Relating to the computation of average
daily attendance in certain school districts that
experience a decline in attendance.), As Engrossed
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB450, As Engrossed: negative impact of $(50,000,000) 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 $(25,000,000) *
* 2003 (25,000,000) *
* 2004 (25,000,000) *
* 2005 (25,000,000) *
* 2006 (25,000,000) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* Foundation School Fund *
* 0193 *
* 2002 $(25,000,000) *
* 2003 (25,000,000) *
* 2004 (25,000,000) *
* 2005 (25,000,000) *
* 2006 (25,000,000) *
*****************************************************
Fiscal Analysis
The bill provides for an alternate method of computing average daily
attendance (ADA) for certain districts that have significant declines in
ADA from one year to the next. School districts that experience
declines in ADA exceeding two percent from one year to the next would be
funded on the basis of 98% of the prior years actual ADA, if the decline
is not due to the closure or reduction in personnel at a military base.
Methodology
The bill changes the measurement of ADA for funding purposes. Under
current law, ADA is measured on the basis of each day of instruction for
most school districts, with allowances for special circumstances
involving concentrations of migrant students, the closure or down-sizing
of a military base, or certain other calamities that affect the
district's attendance. This bill adds a condition that allows for the
adjustment of ADA if the district experiences a decline of more than two
percent for any other reason.
A review of recent attendance data by the Texas Education Agency (TEA)
indicates that more than 6,400 additional ADA would have been included
for state aid funding purposes, if the bill had been in effect in fiscal
year 2000.
TEA estimates that the adjustment described by the bill would cost the
state of approximately $25 million per fiscal year.
Local Government Impact
School districts experiencing declines in their average daily attendance
of two percent or more would be funded on the basis of 98% of the prior
years actual ADA, if the decline is not due to the closure or reduction
in personnel at a military base. As a result, these districts would
receive additional state aid as reflected in the above state fiscal
impact table.
Source Agencies: 701 Texas Education Agency
LBB Staff: JK, CT, RN