Honorable Rob Eissler, Chair, House Committee on Public Education
FROM:
John S. O'Brien, Director, Legislative Budget Board
IN RE:
HB1922 by Kolkhorst (Relating to eligibility of school districts for state assistance with payment of existing debt.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1922, As Introduced: a negative impact of ($150,000,000) 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
($75,000,000)
2009
($75,000,000)
2010
($70,000,000)
2011
($65,000,000)
2012
($60,000,000)
Fiscal Year
Probable Savings/(Cost) from FOUNDATION SCHOOL FUND 193
2008
($75,000,000)
2009
($75,000,000)
2010
($70,000,000)
2011
($65,000,000)
2012
($60,000,000)
Fiscal Analysis
The bill would roll forward the eligibility date for the Existing Debt Allotment program to provide state assistance for the repayment of debt service on bonds for which the district levied taxes and made payments on during the 2006-2007 school year would become eligible for assistance under the Existing Debt allocation (EDA) program.
This bill would become effective September 1, 2007.
Methodology
Rolling the eligibility date forward for the EDA is estimated to cost $75 million in each year of the 2008-09 biennium, decreasing slightly over time to reflect increased property values.
Technology
This bill has no identifiable effect on the Texas Education Agency's technology costs.
Local Government Impact
The rolling forward of EDA eligibility would provide additional state aid to school districts with eligible bonded debt and allow those school districts to avoid levying additional property taxes than they otherwise would have to levy.