Honorable Larry Taylor, Chair, Senate Committee on Education
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
SB457 by Campbell (Relating to funding for an open-enrollment charter school based on the guaranteed level of state and local funds provided to school districts through the existing debt allotment.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB457, As Introduced: a negative impact of ($410,908,004) 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
($195,307,923)
2019
($215,600,081)
2020
($232,007,590)
2021
($241,190,799)
2022
($248,328,768)
Fiscal Year
Probable Savings/(Cost) from Foundation School Fund 193
2018
($195,307,923)
2019
($215,600,081)
2020
($232,007,590)
2021
($241,190,799)
2022
($248,328,768)
Fiscal Analysis
The bill would provide charter holders with funding in addition to current state aid received under the Foundation School Program. The bill would provide charter holders facilities funding equal to the number of students in average daily attendance multiplied by the guaranteed level of state and local funds per student per cent of tax effort under Section 46.032(a) of the Education Code, multiplied by the state average interest and sinking tax rate imposed by school districts for the current year.
The bill would take effect on September 1, 2017.
Methodology
Based on information provided by the Texas Education Agency (TEA) the statewide interest and sinking tax rate is 19.91 cents of tax effort per $100 of eligible property value, the guaranteed yield under Section 46.032(a) of the Education Code is $35 per penny of tax effort per student in average daily attendance. Multiplying these values by the estimated statewide charter school average daily attendance for fiscal years 2018 to 2022 provides an estimated cost of $195.3 million in fiscal year 2018, $215.6 million in fiscal year 2019, and increasing to $248.3 million in fiscal year 2022.
Local Government Impact
No fiscal implication to units of local government is anticipated.