TO:	Honorable Dan Huberty, Chair, House Committee on Public Education
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	HB253 by Simmons (Relating to public school finance, including the establishment of a tax credit scholarship and educational expense assistance program.), As Introduced

The bill would provide a program of hardship grant awards on a formula basis for fiscal years
2018 and 2019. The formula would provide aid for changes in the statutory structure of the FSP
that occur after January 1, 2017. Under this language, the formula for grant awards would
recognize effects related to the expiration of Additional State Aid for Tax Reduction (ASATR) and
effects resulting from legislation enacted during the 85th legislative session affecting Chapters 41
and 42 Education Code. 

Portions of the bill establishing an Educational Assistance Program would have an indeterminate
effect on equalized funding requirements and policies pertaining to the Foundation School Program. School districts across the spectrum of property value per weighted student may experience effects under the bill. Accordingly, implications concerning equalized funding requirements within the Foundation School Program would vary depending on the characteristics of districts affected and the degree of effect experienced.

Beginning in FY19, the bill increase the guarantee level for school district debt service equalized under the Existing Debt Allotment.  The current guarantee level of $35.00 would be increased to the lesser of $40 or the guarantee level that would increase state aid by $60 million.  The additional equalization would primarily benefit districts having lower property wealth per student.