LEGISLATIVE BUDGET BOARD
Austin, Texas
 
EQUALIZED EDUCATION FUNDING IMPACT STATEMENT
 
81ST LEGISLATIVE REGULAR SESSION
 
March 24, 2009

TO:
Honorable Rob Eissler, Chair, House Committee on Public Education
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB2448 by Eiland (Relating to reducing the amount paid to purchase attendance credits by certain school districts in disaster areas.), As Introduced

The potential impact on equalized funding requirements and policies affecting public education would vary in any given year depending upon the number and circumstances of districts affected by natural disasters that might qualify for relief from recapture payments under the bill.  The bill would authorize reductions of recapture payments under Chapter 41, Education Code for a period of up to three years following a natural disaster if specific criteria are met.  The bill would also allow for adjustments to increase recapture payments or withhold state aid in later years for the same districts to recover amounts offset by insurance or governmental assistance.

Because the provisions of the bill would apply retroactively to disasters occurring before the effective date, it is likely that school districts affected by the hurricane impact that occurred early in fiscal year 2009 would be among the districts seeking exemption from recapture beginning in fiscal year 2010.  The continuing disaster declaration related to that hurricane impact presently includes all or part of 81 school districts that would be subject to wealth equalization under current law in fiscal year 2010.  The potential impact on equalized funding requirements beginning in fiscal year 2010 cannot be reliably determined at the present time and would depend specifically upon the number of districts and the amount of recapture attributable to districts that meet the qualifying finanical criteria delineated in the bill.  Implications for equalized funding requirements would continue for up to three years following a disaster.  Implications in future years would depend upon the extent of disaster declarations and resulting school district financial hardship situations incurred in those years.  Likewise, implications in future years could potentially be offsetting due to the bill's authority for increased recapture or reduced state aid to recover amounts later reimbursed due to insurance or governmental assistance.



Source Agencies:
LBB Staff:
JOB, JSp, JGM