LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 3, 2001
TO: Honorable Paul Sadler, Chair, House Committee on Public
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1785 by Nelson (Relating to the limit on assistance
under the state program for assisting school districts
with the payment of existing debt.), As Engrossed
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1785, As Engrossed: negative impact of $(84,000,000) 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. *
* *
* The Senate Committee Substitute for SB 1, as approved by the *
* Senate, includes funding in the Texas Education Agency bill pattern *
* to cover the cost associated with this legislation. *
* *
* *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(45,500,000) *
* 2003 (38,500,000) *
* 2004 (38,500,000) *
* 2005 (38,500,000) *
* 2006 (38,500,000) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* Foundation School Fund *
* 0193 *
* 2002 $(45,500,000) *
* 2003 (38,500,000) *
* 2004 (38,500,000) *
* 2005 (38,500,000) *
* 2006 (38,500,000) *
*****************************************************
Fiscal Analysis
The bill increases the tax limitation for the existing debt allotment
(EDA) under Texas Education Code, Chapter 46, Subchapter B. The bill
would amend section 46.034(a) by increasing the existing debt tax rate
limit from $.12 to $.29, effective September 1, 2001.
This bill changes the funding of the existing debt allotment at $.29 from
a permissive action, if funds are available, to a mandatory action.
Methodology
In fiscal year 2001, the ceiling rate for the EDA was raised from $.12 to
$.29 per $100 of valuation, at a cost of approximately $62,000,000.
Increasing property values and adjustments for student projections have
resulted in an estimated cost for fiscal year 2002 of $45,500,000 over
current law cost, and $38,500,000 for fiscal year 2003.
Local Government Impact
No fiscal implication to units of local government is anticipated.
School districts would be required to reduce related tax effort by a
corresponding amount to reflect this increase in state assistance.
Source Agencies: 701 Texas Education Agency
LBB Staff: JK, CT, PF, JM