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.