LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

May 18, 2007

TO:	Honorable Frank Corte, Jr., Chair, House Committee on Defense Affairs & State-Federal Relations
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	SB961 by Shapleigh (Relating to an allotment under the Foundation School Program for certain students who are military dependents.), As Engrossed

Estimated Two-year Net Impact to General Revenue Related Funds for SB961, As Engrossed: a negative impact of ($19,800,000) 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.

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2008	($9,900,000)
2009	($9,900,000)
2010	($9,900,000)
2011	($9,900,000)
2012	($9,900,000)

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from FOUNDATION SCHOOL FUND 193
2008	($9,900,000)
2009	($9,900,000)
2010	($9,900,000)
2011	($9,900,000)
2012	($9,900,000)

Fiscal Analysis

The bill would provide an additional allotment under the Foundation School Program (FSP) equal to $650 for (1) each student in average daily attendance who has a parent or guardian who is serving on active duty in a combat zone as a member of the United States armed forces, and (2) each student with a parent who is a member of the United States armed forces on active duty and who has transferred to a campus in the district as a result of actions taken under the Defense Base Closure and Realignment Act of 1990.

The total cost of the allotments on a statewide basis may not exceed $9.9 million annually.  If entitlements exceed this amount, each district's allotment would be reduced proportionately.

The bill would take effect September 1, 2007.  The allotment would expire at the end of fiscal year 2012.

Methodology

The bill would limit the state cost of the allotment to $9.9 million each year.  Based on current estimates of eligible students, this maximum amount would be expended each year and provide districts the full $650 per eligible student in average daily attendance. 

The Texas Education Agency (TEA) would be required to collect information from districts on eligible students and modify the FSP payment system, but this cost is not expected to be significant.

Technology

The bill would require TEA to modify its FSP payment system, but this cost is not expected to be significant.

Local Government Impact

School districts serving eligible students would realize additional state aid under the bill.  Those funds must be spent to provide supplemental programs and services for the eligible students.

Source Agencies:

701 Central Education Agency

LBB Staff:

JOB, JGM, ES, UP, JSp