Honorable Dan Huberty, Chair, House Committee on Public Education
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
HB3861 by Bohac (relating to approval of school district and charter school partnerships to operate school district campuses and programs and to eligibility for state funding.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB3861, Committee Report 1st House, Substituted: a negative impact of ($2,454,853) through the biennium ending August 31, 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
2020
$1,507,759
2021
($3,962,612)
2022
($5,645,056)
2023
($7,445,056)
2024
($9,245,056)
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
Probable Savings/(Cost) from Foundation School Fund 193
Change in Number of State Employees from FY 2019
2020
($292,241)
$1,800,000
2.0
2021
($362,612)
($3,600,000)
2.0
2022
($245,056)
($5,400,000)
2.0
2023
($245,056)
($7,200,000)
2.0
2024
($245,056)
($9,000,000)
2.0
Fiscal Analysis
The bill would authorize additional Foundation School Program (FSP) funding for districts that grant campus program charters. The bill prohibits the commissioner from approving more than three partnerships during a school year, excluding renewals of previously approved partnerships.
Methodology
This analysis assumes that 3 campus program charters would participate each fiscal year and that each partnership would generate additional FSP funding of $600,000 per campus. Therefore, the total estimated additional cost to the FSP would be $1.8 million total in fiscal year 2020, $3.6 million in fiscal year 2021, $5.4 million in fiscal year 2022, $7.2 million in fiscal year 2023, and $9.0 million in fiscal year 2024.
Based on information provided by TEA, this analysis assumes that TEA would need two additional full-time equivalents (FTEs) to implement the campus program charter program at an estimated cost of $253,056 in fiscal year 2020 and $245,056 in subsequent years including salary, benefits, and other operating expenses.
Technology
TEA estimates that it would need to update its FSP application at an estimated cost of $39,185 in fiscal year 2020 and $117,556 in fiscal year 2021.
Local Government Impact
School districts that chose to operate a campus program charter would be eligible for additional FSP funding under the provisions of the bill.