LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 27, 2001
  
  
          TO:  Honorable Teel Bivins, Chair, Senate Committee on
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB724  by Wentworth (Relating to the determination under
               the school finance system of the amount of collected
               taxes for certain school districts.), As Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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This bill amends the definition of tax collections to be used in
computation of state aid for school districts that use an alternate date
for taxes as authorized in Tax Code Section 26.135.  It is believed that
only one school district, New Braunfels ISD, uses alternate tax dates.

Because the only district affected by this bill generally has an
increasing tax base and increasing tax collections, the change in the
year to which the taxes would be attributed will likely result in some
increase in the measurement of tax effort and property values for the
district.  As a result, state aid to the district is would probably
increase.

The Texas Education Agency indicates that the absolute maximum potential
state aid benefit, given 2001 fiscal year data, would be about $900,000
per year; however TEA has also stated that  it is unlikely the bill
would result in that large an adjustment of state funding.
  
Local Government Impact
  
The affected school district, New Braunfels ISD, would be required to
report tax collections on a different basis (January through December)
from the required basis for independent audit purposes (September
through August).  The district would likely have increased revenue from
higher state aid, depending on the precise circumstances of the
districts for the year in which credit is given.
  
  
Source Agencies:   701   Texas Education Agency, 304   Comptroller of
                   Public Accounts
LBB Staff:         JK, CT, PF, RN