LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION
 
April 21, 2017

TO:
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.), Committee Report 1st House, Substituted



Estimated Two-year Net Impact to General Revenue Related Funds for SB457, Committee Report 1st House, Substituted: a negative impact of ($410,908,004) through the biennium ending August 31, 2019, assuming the bill takes effect. This legislation would only take effect if a specific appropriation is provided in a general appropriations act of the 85th Legislature.

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 only take effect if a specific appropriation is provided in a general appropriations act of the 85th Legislature.

The bill would take effect on September 1, 2017.

Methodology

This analysis assumes that the 85th Legislature makes a specific appropriation for the implementation of the bill and that the bill will take effect. 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.


Source Agencies:
701 Texas Education Agency
LBB Staff:
UP, THo, AM, AH