Honorable Larry Taylor, Chair, Senate Committee on Education
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
SB2117 by Bettencourt (Relating to state funding and accountability intervention and sanction provisions applicable to school district campuses and programs operated under school district and charter partnerships.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for SB2117, Committee Report 1st House, Substituted: a negative impact of ($24,583,608) 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
($6,274,430)
2021
($18,309,178)
2022
($30,245,056)
2023
($42,245,056)
2024
($54,245,056)
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
($274,430)
($6,000,000)
2.0
2021
($309,178)
($18,000,000)
2.0
2022
($245,056)
($30,000,000)
2.0
2023
($245,056)
($42,000,000)
2.0
2024
($245,056)
($54,000,000)
2.0
Fiscal Analysis
The bill would authorize additional Foundation School Program (FSP) funding for districts that grant campus program charters. The bill requires that the partnering campus and charter entity meet certain accountability requirements for the enhanced funding.
Methodology
Based on information provided by the Texas Education Agency (TEA), it is assumed that 10 campus program charters would participate in fiscal year 2020. TEA estimates that the additional FSP funding generated per campus program charter would be $600,000 per campus; therefore, the total estimated additional cost to the FSP would be $6.0 million total in fiscal year 2020. TEA further assumed that in subsequent years, an additional 20 campus program charters would be created each year at an estimated cost of $12.0 million per year. Therefore, the total estimated cost to the FSP of the campus program charters would be $6.0 million in fiscal year 2020, $18.0 million in fiscal year 2021, $30.0 million in fiscal year 2022, $42.0 million in fiscal year 2023, and $54.0 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 $21,374 in fiscal year 2020 and $46,122 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.