LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
 
April 29, 2009

TO:
Honorable Rob Eissler, Chair, House Committee on Public Education
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
SB817 by Shapleigh (Relating to funding of the Communities In Schools program.), As Engrossed



Estimated Two-year Net Impact to General Revenue Related Funds for SB817, As Engrossed: a negative impact of ($28,738,048) through the biennium ending August 31, 2011.

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
2010 ($14,369,024)
2011 ($14,369,024)
2012 ($14,369,024)
2013 ($14,369,024)
2014 ($14,369,024)




Fiscal Year Probable Savings/(Cost) from
Foundation School Fund
193
2010 ($14,369,024)
2011 ($14,369,024)
2012 ($14,369,024)
2013 ($14,369,024)
2014 ($14,369,024)

Fiscal Analysis

Beginning in fiscal year 2010, the bill would require that a minimum of $30.0 million per fiscal year be set aside from the Foundation School Program compensatory education allotment for the purpose of funding the Communities in Schools Program.  Current law provides for the amount set aside for this purpose to be determined by appropriation.

Methodology

In fiscal year 2009, $15,630,976 was set aside from the Foundation School Program compensatory education allotment for the Communities in Schools Program.  Assuming that this funding level would continue in future years, the additional amount to be withheld each fiscal year under this bill at a minimum would be $14,369,024.  Under the bill, the additional amount would be provided through reductions to districts' Tier 1 compensatory education allotments. However, due to the changes in school finance made by House Bill 1, 79th Legislature, 3rd Called Session, a reduction in a district's Tier 1 state aid would result in a corresponding increase in hold harmless state aid in order to reach the district's total revenue target. As a result, increases in appropriations for set-aside programs result in increased state cost.


Local Government Impact

School districts with local Communities in Schools programs in place could see an increase in state
funding for those programs.


Source Agencies:
701 Central Education Agency
LBB Staff:
JOB, JSp, JGM