LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION
 
May 23, 2007

TO:
Honorable Tom Craddick, Speaker of the House, House of Representatives
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB2 by Chisum (Relating to making appropriations to the Texas Education Agency for the purpose of school district property tax rate reductions. ), As Passed 2nd House



Estimated Two-year Net Impact to General Revenue Related Funds for HB2, As Passed 2nd House: a negative impact of ($6,113,142,000) through the biennium ending August 31, 2009.

This bill makes an appropriation of $8,077,958,000 from the Property Tax Relief Fund and and an appropriation of $6,113,142,000 from the Foundation School Fund.



Fiscal Year Appropriation out of
Property Tax Relief Fund
304 		Appropriation out of
FOUNDATION SCHOOL FUND
193
2008 $4,231,466,000 $2,724,934,000
2009 $3,846,492,000 $3,388,208,000



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2008 ($2,724,934,000)
2009 ($3,388,208,000)




Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2008 ($2,724,934,000)
2009 ($3,388,208,000)
2010 $0
2011 $0
2012 $0




Fiscal Year Probable Savings/(Cost) from
Property Tax Relief Fund
304 		Probable Savings/(Cost) from
FOUNDATION SCHOOL FUND
193
2008 ($4,231,466,000) ($2,724,934,000)
2009 ($3,846,492,000) ($3,388,208,000)
2010 $0 $0
2011 $0 $0
2012 $0 $0

Fiscal Analysis

The bill provides to the Texas Education Agency a two-year appropriation of funds to implement the local school district property tax rate reduction provisions contained in House Bill 1, 79th Legislature, 3rd Called Session.  The bill does not amend general law.

Methodology

The appropriation amounts specified in the bill are the estimated amounts necessary to provide a one-third reduction in local school district property tax rates as described by House Bill 1, 79th Legislature, 3rd Called Session.  The amounts appropriated from the Property Tax Relief Fund ($4.2 billion in fiscal year 2008 and $3.8 billion in fiscal year 2009) reflect the total amount estimated by the Comptroller of Public Accounts as available in that Fund for appropriation in the 2008-09 biennium.  The balance of the cost to provide the tax rate reduction is appropriated out of General Revenue, Fund 193, Foundation School Fund.  These amounts are estimated to be $2.7 billion in fiscal year 2008 and $3.4 billion in fiscal year 2009.

A Senate floor amendment would require the Comptroller on August 31, 2008 to transfer into the property tax relief fund an amount of $2 billion of unappropriated general revenue or if less than $2 billion all the unappropriated general revenue available at that time.  If there is more than $2 billion in such general revenue available on such August date, all of the available general revenue to a maximum of $3 billion should be transferred to the property tax relief fund.  (The Comptroller's Office says that the possible revenue amounts to be transferred cannot be estimated at this time.)


Local Government Impact

The bill makes an appropriation of funds to provide state aid to local school districts.


Source Agencies:
LBB Staff:
JOB, CT, SD, UP