LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 28, 2001 TO: Honorable Teel Bivins, Chair, Senate Committee on Education FROM: John Keel, Director, Legislative Budget Board IN RE: SB1461 by Nelson (Relating to state assistance to school districts for new instructional facilities.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1461, As Introduced: 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 This bill relates to funding for the New Instructional Facilities Allotment (NIFA). It revises Section 42.158 of the Texas Education Code (TEC) by amending Subsection (a), increasing the allocation per pupil from $250 to $500. It also amends Subsection (d) by eliminating the $50 million limit to the total biennial appropriation and removes any potential proration. Methodology The fiscal year 2001 cost for the New Instructional Facilities Allotment will approximately equal the appropriated amount of $25 million. Because the bill would double the allotment per pupil, it is assumed that the cost to the state would approximately double, increasing from $25 million to about $50 million for each year of the biennium. Because the bill removes the appropriation limit ($25 million per year) and the provision that allows the commissioner of education to prorate funding if the appropriation does not meet the full entitlement cost, the actual cost to the state could be higher. Local Government Impact School districts would experience increased state aid as reflected in the state fiscal impact table above. Source Agencies: 701 Texas Education Agency LBB Staff: JK, CT, PF, RN