Honorable Warren Chisum, Chair, House Committee on Appropriations
FROM:
John S. O'Brien, Director, Legislative Budget Board
IN RE:
HB206 by Flores (Relating to state funding for school districts for transportation of students who would be subject to hazardous traffic conditions while walking.), As Introduced
No significant fiscal implication to the State is anticipated.
The bill would eliminatee the current law restriction with regard to supplemental transportation funding associated with students who are subject to hazardous traffic conditions, while walking to school. Under current law, supplemental funding is limited to 10% of the school district's transportation allotment under the Foundation School Program.
To the extent that school districts apply for and receive the adjustment in excess of the current law 10% limitation, the provision would generate additional Foundation School Program (FSP) state costs in the transportation allotment. Due to changes made by House Bill 1, 79th Legislature, 3rd Called Session, increases to Foundation School Program formula funding elements are generally either offset by a decrease in districts' entitlement to hold harmless funds or an increase in funds dragged back to hold districts to a total revenue target. Since the bill does not amend Texas Education Code 42.2516 regarding the calculation of school district entitlements under the Foundation School Program, no net cost to the state associated with increases to the transportation allotment is expected.
The bill would extend the Commissioner of Education the authority to determine the amount of the additional allotment. Assuming a 5% annual increase in hazardous route funding, and if Texas Education Code 42.2516 were amended to allow for changes in the transportation allotment to impact state aid, the estimated state cost would approximately $20 million in fiscal year 2008, $21 million in fiscal year 2009 and increasing by approximately the same amount in the out years. Associated administrative costs to the agency are not estimated to be significant.
Local Government Impact
The bill requires school districts and charter schools that receive hazardous route funding to submit a copy of their hazardous route policy on an annual basis in order to maintain eligibility for funding for the adjustment.
School districts would not experience any net increase in state aid under the provisions of the bill. If Texas Education Code 42.2516 were amended to allow for increases in state aid associated with the transportation allotment, district revenues would increase as described above.