TO: | Honorable Steve Ogden, Chair, Senate Committee on Finance |
FROM: | John S O'Brien, Director, Legislative Budget Board |
IN RE: | SB22 by Shapiro (Relating to public school finance.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2012 | $2,000,000,000 |
2013 | $2,000,000,000 |
2014 | $2,000,000,000 |
2015 | $2,000,000,000 |
2016 | $2,000,000,000 |
Fiscal Year | Probable Savings/(Cost) from Foundation School Fund 193 |
---|---|
2012 | $2,000,000,000 |
2013 | $2,000,000,000 |
2014 | $2,000,000,000 |
2015 | $2,000,000,000 |
2016 | $2,000,000,000 |
The bill would make structural changes in the Foundation School Program that would result in significant savings beginning in FY12 and continuing thereafter.
The bill would change the basic allotment and would proportionally reduce the portion of each district's target revenue that is based on 2009-10 revenue per weighted student under the school finance system enacted in 2006. The bill would not change the remaining target revenue elements, but would codify intent with respect to the calculation of target revenue hold harmless aid for school districts adopting tax rates below the compressed rate.
The bill would establish a new general loss limitation provision that would adjust calculated state aid or recapture to ensure that district revenue per weighted student at the compressed rate would not fall below a specific percentage less than the preceding year. The loss limitation would appear to apply to revenue losses occurring in general as well as losses that might result from the provisions of the bill.
The bill would revise the statutory mechanism used to prorate shortfalls in the Foundation School Program among districts to apply a uniform percentage reduction to all districts.
School districts would experience significant loss of revenue under the bill. In total, revenues available to school districts would decline by approximately more than $2.0 billion per year relative to current law. Reductions in revenue would vary among districts depending upon specific local circumstances.
Beginning with the adoption of tax rates for tax year 2011, the bill would relax school district publication and hearing requirements pertaining to the effective interest and sinking fund rate in situations where the effective rate decreases after the initial publication. Under the bill, school districts would be clearly authorized to adopt a lower interest and sinking fund rate without republishing or rehearing the proposed lower rate. The number of districts that would no longer have to republish or rehear proposed tax rates would vary each year but is likely limited to no more than 50 districts each year. The Texas Education Agency estimates an average savings of $140 per republication avoided.
Source Agencies: |
LBB Staff: | JOB, LXH, JGM, JSp
|