FISCAL NOTE, 85TH LEGISLATURE 1st CALLED SESSION - 2017
August 7, 2017
TO:
Honorable Dan Huberty, Chair, House Committee on Public Education
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB272 by Koop (Relating to the creation of a state financing program administered by the Texas Public Finance Authority to assist school districts with certain expenses; granting authority to issue bonds or other obligations.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB272, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2019.
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
$0
2021
$0
2022
$0
Fiscal Year
Probable Savings/(Cost) from Appropriated Receipts 666
Change in Number of State Employees from FY 2017
2018
($133,158)
1.0
2019
($130,958)
1.0
2020
($130,958)
1.0
2021
($130,958)
1.0
2022
($130,958)
1.0
Fiscal Analysis
The bill would authorize the Texas Public Finance Authority (TPFA) to issue and sell an aggregate amount of outstanding obligations not to exceed $100 million to finance: loans to eligible school districts; the purchase, lease, or lease-purchase of vehicles, equipment or appliances by eligible school districts; or costs associated with maintenance, repair, rehabilitation, or renovation of eligible school district facilities.
The bill would allow TPFA to use proceeds of obligations under the provisions of this bill to pay the cost of administering the program. The bill would create the School District Equipment and Improvement Fund outside the treasury to implement the program.
The bill would create a process whereby a district's state aid payment made under the Foundation School Program would be withheld from a school district and transferred to TPFA if a school district notifies the Commissioner of Education that the district will not be able to pay maturing or matured principal or interest on an obligation.
The bill would take effect immediately upon receiving two-thirds majority vote in each house. Otherwise, the bill would take on the 91st day after the last day of the legislative session.
This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
Methodology
Based on information provided by TPFA, the agency would have an estimated administrative cost of $133,158 in fiscal year 2018, and $130,958 in subsequent years to implement the provisions of the legislation, related to the salary, benefits, travel, and other operating expense of one Full-time Equivalent to implement the program.
The bill would authorize TPFA to charge fees to participating school districts for the cost of administering the program, and it is anticipated that the FTE would be paid from these fees.
The Texas Education Agency and the Comptroller of Public Accounts indicated that the duties and responsibilities associated with implementing the provisions of the bill could be accomplished within each agency's existing resources.
Technology
TPFA indicates it would have a technology impact of $2,200 in fiscal year 2018 related to implementing the provisions of the bill.
Local Government Impact
The Texas Education Agency indicates that certain districts would be able to issue debt at a lower cost under the provisions of the bill, and as a result, could realize savings.
Source Agencies:
347 Public Finance Authority, 304 Comptroller of Public Accounts, 701 Texas Education Agency