Honorable Brad Buckley, Chair, House Committee on Public Education
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB3622 by Landgraf (relating to measures to support public school students at risk of dropping out of school, including average daily attendance for the optional flexible school day program and the dropout recovery school and residential placement facility allotment under the Foundation School Program.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB3622, Committee Report 1st House, Substituted: a negative impact of ($25,608,130) through the biennium ending August 31, 2027.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026
($12,828,583)
2027
($12,779,547)
2028
($12,754,187)
2029
($12,764,235)
2030
($12,792,534)
All Funds, Five-Year Impact:
Fiscal Year
Probable Savings/(Cost) from Foundation School Fund 193
Probable Revenue Gain/(Loss) from Recapture Payments Atten Crdts 8905
2026
($12,828,583)
($1,411,144)
2027
($12,779,547)
($1,405,750)
2028
($12,754,187)
($1,402,961)
2029
($12,764,235)
($1,404,066)
2030
($12,792,534)
($1,407,179)
Fiscal Analysis
The bill would amend the calculation of average daily attendance (ADA) for students participating in the Optional Flexible School Day Program (OFSDP). The bill would remove the limitation on ADA resulting from the accumulation of hours of instruction in a particular reporting period if the annual accumulated ADA does not exceed one ADA with perfect attendance.
The bill would increase the Dropout Recovery School and Residential Placement Facility Allotment under the Foundation School Program (FSP) to $500 for each student in ADA and would amend eligibility to include students being provided services for dropout recovery through a private or public community-based dropout recovery education program.
Methodology
TEA assumes there are 670 students in ADA participating in OFSDP and that the bill would result in a 50 percent increase in ADA due to the removal of the limitation on ADA during a particular reporting period.
TEA assumes there are currently 45,700 ADA participating in a dropout recovery school and residential placement facility program which would receive the increased allotment under the bill.
TEA assumes the cost to the FSP would be $12.8 million in each fiscal year. The cost to the FSP includes estimated decreases in Recapture Payments - Attendance Credits of $1.4 million in each fiscal year.
Local Government Impact
TEA assumes LEAs would receive additional funding for OFSDY under the bill.
LEAs would be entitled to additional funding for students participating in a dropout recovery school and residential placement facility program.