Honorable Larry Taylor, Chair, Senate Committee on Education
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
SB725 by Lucio (Relating to funding for prekindergarten programs at certain school districts that operate early high school graduation programs.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB725, As Introduced: a negative impact of ($75,063,715) 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
($37,160,255)
2021
($37,903,460)
2022
($38,661,529)
2023
($39,434,760)
2024
($40,223,455)
Fiscal Year
Probable Savings/(Cost) from Foundation School Fund 193
2020
($37,160,255)
2021
($37,903,460)
2022
($38,661,529)
2023
($39,434,760)
2024
($40,223,455)
Fiscal Analysis
The bill would extend and expand a pilot program that provides additional prekindergarten funding as a result of the school district's participation in an early high school graduation program operated by the district. The bill would eliminate the requirement that the district be located in a county that borders the United Mexican States and the Gulf of Mexico.
Methodology
The Texas Education Agency reports that 4,551 students graduated early statewide in fiscal year 2018. Of these students, 118 students attended a school district already participating in this pilot program, providing for an additional 4,443 students in average daily attendance (ADA) that would be added to the Foundation School Program (FSP) through additional prekindergarten funding. TEA further estimated that this amount would increase by 2 percent per year.
TEA estimated the average cost per prekindergarten student in ADA is $8,039.
Based on the assumptions laid out above, the estimated cost would be $37.2 million in fiscal year 2020, $37.9 million in fiscal year 2021, growing to $40.2 million in fiscal year 2024.
Local Government Impact
Districts that choose to participate in the program would receive additional funding through the provisions of the bill.