LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 9, 2001 TO: Honorable Teel Bivins, Chair, Senate Committee on Education FROM: John Keel, Director, Legislative Budget Board IN RE: SB1314 by Staples (Relating to eligibility of school districts for state assistance with payment of existing debt.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1314, As Introduced: negative impact of $(469,762) 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 $(234,014) * * 2003 (235,748) * * 2004 (232,518) * * 2005 (179,680) * * 2006 (178,919) * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Savings/(Cost) from * * Foundation School Fund * * 0193 * * 2002 $(234,014) * * 2003 (235,748) * * 2004 (232,518) * * 2005 (179,680) * * 2006 (178,919) * ***************************************************** Fiscal Analysis The bill authorizes the Texas Education Agency to make existing debt allotment (EDA) payments to districts that either made bond payments in the 1998-99 school year or levied taxes to pay for the bond payments in 1998-99. Under current law, districts must levy and collect taxes for the interest and principal of eligible bonds. Methodology This bill would render four additional school districts eligible for EDA funding. However, only one district has eligible bond payments in the years beginning with fiscal year 2002. The additional EDA aid to this district is estimated at $234,014 in 2002, $235,748 in 2003 and decreasing each year thereafter. Local Government Impact Districts would have the discretion to levy and collect taxes or pay for eligible bond payments using other sources without jeopardizing their state aid. In addition, it would change the eligibility status of one school district. This district would be required to reduce local debt service taxes by an amount commensurate with its increased state aid. Source Agencies: 701 Texas Education Agency LBB Staff: JK, CT, JM