LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 4, 2009 TO: Honorable Florence Shapiro, Chair, Senate Committee on Education FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB401 by Seliger (relating to eligibility for the small and mid-sized adjustment under the public school finance system. ), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for SB401, Committee Report 1st House, Substituted: a negative impact of ($2,683,957) through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
March 4, 2009
TO: Honorable Florence Shapiro, Chair, Senate Committee on Education FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB401 by Seliger (relating to eligibility for the small and mid-sized adjustment under the public school finance system. ), Committee Report 1st House, Substituted
TO: Honorable Florence Shapiro, Chair, Senate Committee on Education
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: SB401 by Seliger (relating to eligibility for the small and mid-sized adjustment under the public school finance system. ), Committee Report 1st House, Substituted
Honorable Florence Shapiro, Chair, Senate Committee on Education
Honorable Florence Shapiro, Chair, Senate Committee on Education
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
SB401 by Seliger (relating to eligibility for the small and mid-sized adjustment under the public school finance system. ), Committee Report 1st House, Substituted
SB401 by Seliger (relating to eligibility for the small and mid-sized adjustment under the public school finance system. ), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for SB401, Committee Report 1st House, Substituted: a negative impact of ($2,683,957) through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for SB401, Committee Report 1st House, Substituted: a negative impact of ($2,683,957) through the biennium ending August 31, 2011.
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 2010 ($1,218,216) 2011 ($1,465,741) 2012 ($1,654,728) 2013 ($1,795,673) 2014 ($2,221,115)
2010 ($1,218,216)
2011 ($1,465,741)
2012 ($1,654,728)
2013 ($1,795,673)
2014 ($2,221,115)
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromFoundation School Fund193 2010 ($1,218,216) 2011 ($1,465,741) 2012 ($1,654,728) 2013 ($1,795,673) 2014 ($2,221,115)
Fiscal Year Probable Savings/(Cost) fromFoundation School Fund193 2010 ($1,218,216) 2011 ($1,465,741) 2012 ($1,654,728) 2013 ($1,795,673) 2014 ($2,221,115)
2010 ($1,218,216)
2011 ($1,465,741)
2012 ($1,654,728)
2013 ($1,795,673)
2014 ($2,221,115)
Fiscal Analysis
The bill would repeal 42.103(e), Education Code but would provide only limited access to the Foundation School Program (FSP) mid-sized adjustment for districts that exceed the equalized wealth level under 41.002, Education Code. Specifically, the bill would prevent the repeal of the prohibition from increasing state and local funding provided for compressed tax effort. However, the bill would not limit the application of the adjustment for the purpose of calculating entitlement for enrichment tax effort. Application of the adjustment would increase the number of students in weighted average daily attendance (WADA) for affected districts for the purpose of determining state and local entitlement for enrichment tax effort under the Foundation School Program.
Methodology
The state obligation for increased Foundation School Program entitlement and reduced recapture for enrichment tax effort would result in additional annual state costs beginning in fiscal year 2010. Costs are projected to be approximatley $1.2 million in fiscal year 2010 increasing to $2.2 million by fiscal year 2014.
Local Government Impact
School districts that currently do not qualify for the mid-sized adjustment due to wealth per WADA in excess of the equalized wealth level would realize additional revenue under the Foundation School Program via increased entitlement and reduced recapture obligations for enrichment tax effort.
Source Agencies: 701 Central Education Agency
701 Central Education Agency
LBB Staff: JOB, JSp, JGM
JOB, JSp, JGM