FISCAL NOTE, 85TH LEGISLATURE 1st CALLED SESSION - 2017
July 24, 2017
TO:
Honorable Dan Huberty, Chair, House Committee on Public Education
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB194 by Ashby (Relating to the small-sized district adjustment under the Foundation School Program.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB194, As Introduced: an impact of $0 through the biennium ending August 31, 2019.
The provisions of the bill would have a negative impact of ($125,136,583) in the biennium ending August 30, 2021.
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
2018
$0
2019
$0
2020
($41,495,436)
2021
($83,641,147)
2022
($127,531,336)
Fiscal Year
Probable Savings/(Cost) from Foundation School Fund 193
2018
$0
2019
$0
2020
($41,495,436)
2021
($83,641,147)
2022
($127,531,336)
Fiscal Analysis
The bill would amend the small district adjustment applied to the basic allotment for districts with boundaries encompassing less than 300 square miles. Beginning in fiscal year 2020, the bill would increase the small district adjustment for these districts each year through fiscal year 2025 until the adjustment is equal to the level currently provided for small districts encompassing 300 or more square miles.
The adjustment's effect on charter school funding would be limited to the level provided in fiscal year 2019.
The bill would take effect on September 1, 2019.
Methodology
Based on information provided by the Texas Education Agency, this analysis estimates costs to the state from increasing modify the small district adjustment would equal $41.5 million in fiscal year 2020, $83.6 million in fiscal year 2021, and $127.5 million in fiscal year 2022.
Local Government Impact
Districts who would otherwise receive the small district adjustment that are less than 300 square miles would receive increased entitlement under the provisions of the bill.