LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION
 
April 21, 2003

TO:
Honorable Florence Shapiro, Chair, Senate Committee on Education
 
FROM:
John Keel, Director, Legislative Budget Board
 
IN RE:
SB929 by Shapiro (Relating to regional education service centers.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for SB929, As Introduced: a negative impact of ($750,000) through the biennium ending August 31, 2005.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2004 ($750,000)
2005 $0
2006 $0
2007 $0
2008 $0




Fiscal Year Probable Savings/(Cost) from
GENERAL REVENUE FUND
1
2004 ($750,000)
2005 $0
2006 $0
2007 $0
2008 $0

Fiscal Analysis

The bill would prohibit the use of funds in the Foundation School Program for financing core services at Regional Education Service Centers (ESC's).  The bill would distribute any appropriations for educational services currently provided at ESC's directly to school districts for use in obtaining those services from ESC's or other providers.

The bill requires that the Comptroller contract with a consultant to perform a comprehensive review of the services and funding mechanisms of ESC's.  Findings shall be reported to the Legislature not later than December 1, 2004.


Methodology

The bill has no net fiscal implications for the Texas Education Agency or the Foundation School Program, as funds currently distributed to ESCs are rerouted to school districts. 

The Comptroller estimates the contract cost for a consultant to perform the ESC review to be a one-time expenditure of $750,000 in 2004.


Technology

The bill has no fiscal implications for the state's technology costs.

Local Government Impact

The fiscal implications of the bill for school districts are uncertain.  Districts would receive an increase in direct funding from the state as funds formerly distributed to ESC's are transferred to districts.  Districts then would need to purchase the services formerly provided by ESC's from either the ESC's or another service provider.  Districts may be able to acquire the same set of services they currently are receiving for less than the provided amount, yielding a net savings.  However, some districts may have to pay more than the provided amount to purchase the same level or quality of services.  Because some districts may not contract with ESC's for services, reduced revenue may cause those ESC's to increase fees, costing more to the districts that, out of choice or necessity, purchase their services.   


Source Agencies:
701 Central Education Agency
LBB Staff:
JK, CT, UP, JGM