LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION
 
April 24, 2007

TO:
Honorable Rob Eissler, Chair, House Committee on Public Education
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB1672 by Swinford (Relating to eligibility for the small and mid-sized adjustment under the public school finance system.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB1672, As Introduced: a negative impact of ($61,800,000) through the biennium ending August 31, 2009.

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
2008 ($30,900,000)
2009 ($30,900,000)
2010 ($30,900,000)
2011 ($30,900,000)
2012 ($30,900,000)




Fiscal Year Probable Savings/(Cost) from
FOUNDATION SCHOOL FUND
193
2008 ($30,900,000)
2009 ($30,900,000)
2010 ($30,900,000)
2011 ($30,900,000)
2012 ($30,900,000)

Fiscal Analysis

The bill would repeal the provision in current law that prohibits districts that have a property wealth per weighted student level greater than the equalized wealth level (Chapter 41 districts) from receiving the mid-size district adjustment to the Foundation School Program basic allotment.   The bill would take effect on September 1, 2007.

Methodology

It is estimated that allowing Chapter 41 districts to receive the mid-size adjustment would result in a state cost of approximately $30.9 million annually, beginning in FY2008.

Technology

The bill would have no impact to the Texas Education Agency's technology costs.

Local Government Impact

Certain Chapter 41 districts would receive additional state funding under the bill's provisions.


Source Agencies:
LBB Staff:
JOB, JSp, UP, JGM