LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION
 
April 16, 2007

TO:
Honorable Leticia Van de Putte, Chair, Senate Committee on Veteran Affairs & Military Installations
 
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. ), Committee Report 1st House, Substituted



Estimated Two-year Net Impact to General Revenue Related Funds for SB961, Committee Report 1st House, Substituted: a negative impact of ($65,000,000) 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 ($32,500,000)
2009 ($32,500,000)
2010 ($32,500,000)
2011 ($32,500,000)
2012 ($32,500,000)




Fiscal Year Probable Savings/(Cost) from
GENERAL REVENUE FUND
1
2008 ($32,500,000)
2009 ($32,500,000)
2010 ($32,500,000)
2011 ($32,500,000)
2012 ($32,500,000)

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 in a combat zone as a member of the armed forces of the United States or the state military forces.  The bill would take effect September 1, 2007.


Methodology

Data from a variety of sources suggest the number of students in Texas with a parent who is a member of the U.S or state military forces on active duty in a combat zone can be estimated at roughly 50,000 annually, on average.  Based on this assumption, the additional state aid that would be generated under the Foundation School Program (FSP) would be estimated to average $32.5 million each year beginning in FY2008.  The Texas Education Agency is expected to be able to absorb the costs of tracking and calculating district FSP payments with existing resources.

For the purposes of this fiscal note, it is assumed that school districts would determine eligibility of a student at a single time at the beginning of the school year, and that the student would continue to receive the weighted funding for the entire school year, regardless of a change in his or her parent's military status during the year.  If this or other assumptions used in the calculation of this fiscal note are not used for actual implementation,  state costs would be expected to vary from this estimate.


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