LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 25, 2009 TO: Honorable Florence Shapiro, Chair, Senate Committee on Education FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB587 by Shapiro (Relating to the eligibility of school districts for state assistance with payment of existing debt.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB587, As Introduced: a negative impact of ($69,800,000) 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 25, 2009
TO: Honorable Florence Shapiro, Chair, Senate Committee on Education FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB587 by Shapiro (Relating to the eligibility of school districts for state assistance with payment of existing debt.), As Introduced
TO: Honorable Florence Shapiro, Chair, Senate Committee on Education
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: SB587 by Shapiro (Relating to the eligibility of school districts for state assistance with payment of existing debt.), As Introduced
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
SB587 by Shapiro (Relating to the eligibility of school districts for state assistance with payment of existing debt.), As Introduced
SB587 by Shapiro (Relating to the eligibility of school districts for state assistance with payment of existing debt.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB587, As Introduced: a negative impact of ($69,800,000) 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 SB587, As Introduced: a negative impact of ($69,800,000) 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 ($35,500,000) 2011 ($34,300,000) 2012 ($33,300,000) 2013 ($32,200,000) 2014 ($30,900,000)
2010 ($35,500,000)
2011 ($34,300,000)
2012 ($33,300,000)
2013 ($32,200,000)
2014 ($30,900,000)
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromFOUNDATION SCHOOL FUND193 2010 ($35,500,000) 2011 ($34,300,000) 2012 ($33,300,000) 2013 ($32,200,000) 2014 ($30,900,000)
Fiscal Year Probable Savings/(Cost) fromFOUNDATION SCHOOL FUND193 2010 ($35,500,000) 2011 ($34,300,000) 2012 ($33,300,000) 2013 ($32,200,000) 2014 ($30,900,000)
2010 ($35,500,000)
2011 ($34,300,000)
2012 ($33,300,000)
2013 ($32,200,000)
2014 ($30,900,000)
Fiscal Analysis
The bill would roll forward the eligibility date for the Existing Debt Allotment program to provide state assistance for the repayment of debt service on bonds for which the district levied taxes and made payments on during the 2008-2009 school year would become eligible for assistance under the Existing Debt Allocatment (EDA) program. This bill would become effective September 1, 2007.
Methodology
Rolling the eligibility date forward for EDA has an estimated cost of $35.5 million in FY2010 and $34.3 in FY2011, decreasing slightly over subsequent years to reflect increased property values.
Local Government Impact
The rolling forward of EDA eligibility would provide additional state aid to school districts with eligible bonded debt and allow those school districts to avoid levying additional property taxes than they otherwise would have to levy.
Source Agencies: 701 Central Education Agency
701 Central Education Agency
LBB Staff: JOB, JSp, JGM
JOB, JSp, JGM