TO: | Honorable John T. Smithee, Chair, House Committee on Insurance |
FROM: | John S O'Brien, Director, Legislative Budget Board |
IN RE: | HB2700 by Eiland (Relating to an allotment under the public school finance system for the cost of windstorm and hail insurance.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2012 | ($60,000,000) |
2013 | ($60,000,000) |
2014 | ($60,000,000) |
2015 | ($60,000,000) |
2016 | ($60,000,000) |
Fiscal Year | Probable Savings/(Cost) from Foundation School Fund 193 |
---|---|
2012 | ($60,000,000) |
2013 | ($60,000,000) |
2014 | ($60,000,000) |
2015 | ($60,000,000) |
2016 | ($60,000,000) |
The bill would establish a new allotment within the Foundation School Program to deliver state aid to school districts equal to the amount spent for windstorm and hail insurance up to a maximum amount to be established by commissioner of education rule. The bill would make payment of the allotment contingent upon a specific appropriation for this purpose or upon a determination by the commissioner of education that excess appropriations exist for the Foundation School Program and are available for that purpose.
This fiscal note assumes funds would be specifically appropriated for the purposes of the legislation.
The Texas Education Agency indicates that school districts reported expenditures for all property insurance in fiscal year (FY) 2010 of $179,930,578. While the data are not reported at a level of specificity that allows isolation of expenditures for the portion of property insurance expenditures attributable only to windstorm and hail insurance, if approximately one-third of this total would meet this definition, the cost for the allotment established under the bill would be approximately $60.0 million each year.
Source Agencies: | 701 Central Education Agency
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LBB Staff: | JOB, KJG, JGM, JSp
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