LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

March 28, 2007

TO:	Honorable Eliot Shapleigh, Chair, Senate Committee on S/C on Base Realignment and Closure
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 Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for SB961, As Introduced: a negative impact of ($26,000,000) 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.

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2008	($13,000,000)
2009	($13,000,000)
2010	($13,000,000)
2011	($13,000,000)
2012	($13,000,000)

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from GENERAL REVENUE FUND 1
2008	($13,000,000)
2009	($13,000,000)
2010	($13,000,000)
2011	($13,000,000)
2012	($13,000,000)

Fiscal Analysis

The bill increases state aid under the Foundation School Program by providing additional funding for students who have a parent or guardian serving on active duty as a member of the armed forces of the United States and who have transferred to a public school campus during the school year as a result of change in residence due to actions taken under the Defense Base Closure and Realignment Act of 1990.   Additional state aid would also be provided for students with a parent or guardian serving on active duty in a combat zone as a member of the armed forces of the United States.

The bill would take effect September 1, 2007.

Methodology

Based on an analysis of the enrollment and attendance of school campuses that are located at some of the current military installations in Texas and an estimate of the number of potentially affected students who may currently be attending other public schools nearby, it is assumed that on average about 1 in 250 students statewide, or about 20,000 students, may meet the qualifications for additional funding each year.  Based on this assumption, the additional state aid that would be generated under the Foundation School Program would be estimated to average $13.0 million each year beginning in FY2008.  State costs would be expected to vary if the actual number of students qualifying for the additional weighted funding were significantly higher or lower than the estimated population.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

School districts serving eligible students would realize additional state aid under the bill.

Source Agencies:

LBB Staff:

JOB, ES, UP, JSp