LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 30, 2001 TO: Honorable Teel Bivins, Chair, Senate Committee on Education FROM: John Keel, Director, Legislative Budget Board IN RE: SB1490 by Shapleigh (Relating to the relationship between certain funding elements of the Foundation School Program.), As Introduced ************************************************************************** * An indeterminate fiscal implication to the State is anticipated. * ************************************************************************** The bill creates a statutory linkage between the funding elements of the Foundation School Program, and establishes a standard to be followed in appropriating funds for the program. The bill would require that any increase in the basic allotment, the tier two guaranteed level, or the equalized wealth level be accompanied by an increase in the other elements to reduce to an insignificant level the remaining inequities in the school finance system. The bill would require that at least 85% of students must be in districts that receive tier two funding. If any one of the elements is adjusted, the bill could have a significant fiscal impact on the State. The magnitude of the impact depends on the funding element adjustment under consideration. Local Government Impact School districts would benefit from any increase in funding elements resulting from this legislation. Source Agencies: 701 Texas Education Agency LBB Staff: JK, CT, PF, RN