TO: | Honorable Kent Grusendorf, Chair, House Committee on Public Education |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | HB251 by Jones, Elizabeth (Relating to the equalized wealth level under the public school finance system.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2004 | ($178,000,000) |
2005 | ($198,500,000) |
2006 | ($215,000,000) |
2007 | ($257,000,000) |
2008 | ($257,000,000) |
Fiscal Year | Probable Savings/(Cost) fromFOUNDATION SCHOOL FUND 193 |
---|---|
2004 | ($178,000,000) |
2005 | ($198,500,000) |
2006 | ($215,000,000) |
2007 | ($257,000,000) |
2008 | ($257,000,000) |
The bill would increase the equalized wealth level under Chapter 41 of the Texas Education Code from $305,000 to $330,000. The increase in equalized wealth level will cause property-wealthy school districts to owe less under the options exercised to comply with the requirements of Chapter 41. The change allows districts to retain maintenance and operations tax revenues from an additional $25,000 of tax base per weighted student. At a tax rate of $1.50, that could amount to $375 per weighted student.
To determine the statewide impact, a school finance model was run. The model indicates an annual estimated reduction in recapture revenue of $178 million in 2004 and $198.5 million in 2005 resulting in an equal increase in state general revenue.
Certain districts would experience additional revenue, as reflected by the Foundation School Program cost and revenue tables shown above.
Source Agencies: | 701 Central Education Agency
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LBB Staff: | JK, JO, CT, UP, RN
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