TO: | Honorable Florence Shapiro, Chair, Senate Committee on Education |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | SB352 by Wentworth (Relating to the small and mid-sized district adjustment under the public school finance system.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2004 | ($18,600,000) |
2005 | ($19,400,000) |
2006 | ($21,500,000) |
2007 | ($23,300,000) |
2008 | ($23,300,000) |
Fiscal Year | Probable Savings/(Cost) fromFOUNDATION SCHOOL FUND 193 |
---|---|
2004 | ($18,600,000) |
2005 | ($19,400,000) |
2006 | ($21,500,000) |
2007 | ($23,300,000) |
2008 | ($23,300,000) |
Under current law, school districts identified as property-wealthy and subject to the requirements of Chapter 41, Texas Education Code, are not eligible for the mid-size district adjustment.
The bill would grant the adjustment to these districts, compensating them for the higher fixed costs
of operating schools in less populated areas.
The bill would allow the mid-size districts subject to Chapter 41 to retain additional maintenance and operations tax revenues, because it will give the districts affected a higher count of weighted students. The effect will vary from district to district because the adjustment is proportional to the size of the district in terms of average daily attendance. The additional retained revenue would reduce the funds received under Chapter 41 for the purposes of funding the Foundation School Program, thereby increasing the cost to the state for state aid.
Source Agencies: | 701 Central Education Agency
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LBB Staff: | JK, WP, CT, UP, RN
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