TO:	Honorable Rob Eissler, Chair, House Committee on Public Education
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	SB644 by Shapiro (Relating to modifications, adjustments, and reimbursements under the public school finance system and contract delegation authority for a school district located in a disaster area.), As Engrossed

The potential impact on equalized funding requirements and policies affecting public education would vary but could be significant based on the number and circumstances of districts that are located in disaster areas declared by the governor under Chapter 418, Government Code and incur disaster remediation costs.  The bill would provide for the calculation of entitlement on the basis adjusted average daily attendance and adjusted property values.  The bill would also authorize funding in addition to foundation school program entitlement in the form of direct reimbursement of remaining disaster remediation costs, provided that a direct appropriation is made or excess appropriations are available within the foundation school program.

The continuing disaster declaration related to hurricane impact that occurred early in fiscal year 2009  includes all or part of 570 school districts, representing 82% of statewide average daily attendance.  Under such circumstances, there is the potential for significant impact on equalized funding requirements, particularly for fiscal years 2010 and 2011 under the bill.  Additional impact for fiscal year 2011 and all impact for fiscal years 2012 – 2014 with regard to equalization will depend upon the extent of disaster declarations and remediation costs incurred in those years.