LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION April 16, 2015 TO: Honorable Larry Taylor, Chair, Senate Committee on Education FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1900 by Campbell (Relating to funding for an open-enrollment charter school based on certain ad valorem taxes collected by school districts.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB1900, As Introduced: a negative impact of ($643,800,000) through the biennium ending August 31, 2017. 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, 84TH LEGISLATIVE REGULAR SESSION
April 16, 2015
TO: Honorable Larry Taylor, Chair, Senate Committee on Education FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1900 by Campbell (Relating to funding for an open-enrollment charter school based on certain ad valorem taxes collected by school districts.), As Introduced
TO: Honorable Larry Taylor, Chair, Senate Committee on Education
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB1900 by Campbell (Relating to funding for an open-enrollment charter school based on certain ad valorem taxes collected by school districts.), As Introduced
Honorable Larry Taylor, Chair, Senate Committee on Education
Honorable Larry Taylor, Chair, Senate Committee on Education
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB1900 by Campbell (Relating to funding for an open-enrollment charter school based on certain ad valorem taxes collected by school districts.), As Introduced
SB1900 by Campbell (Relating to funding for an open-enrollment charter school based on certain ad valorem taxes collected by school districts.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1900, As Introduced: a negative impact of ($643,800,000) through the biennium ending August 31, 2017. 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 SB1900, As Introduced: a negative impact of ($643,800,000) through the biennium ending August 31, 2017.
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 2016 ($308,100,000) 2017 ($335,700,000) 2018 ($341,600,000) 2019 ($361,900,000) 2020 ($369,400,000)
2016 ($308,100,000)
2017 ($335,700,000)
2018 ($341,600,000)
2019 ($361,900,000)
2020 ($369,400,000)
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromFoundation School Fund193 2016 ($308,100,000) 2017 ($335,700,000) 2018 ($341,600,000) 2019 ($361,900,000) 2020 ($369,400,000)
Fiscal Year Probable Savings/(Cost) fromFoundation School Fund193 2016 ($308,100,000) 2017 ($335,700,000) 2018 ($341,600,000) 2019 ($361,900,000) 2020 ($369,400,000)
2016 ($308,100,000)
2017 ($335,700,000)
2018 ($341,600,000)
2019 ($361,900,000)
2020 ($369,400,000)
Fiscal Analysis
The bill would entitle open-enrollment charter holders to additional funding per weighted student equivalent to the state average amount of interest and sinking revenue per weighted student collected by school districts with taxing authority.
Methodology
The bill would provide charter holders with funding in addition to current state aid received under the Foundation School Program (FSP). The Texas Education Agency estimated interest and sinking revenue to be collected by school districts with taxing authority based on current information concerning the total debt service payments to be made by school districts each year for fiscal years 2016 through 2020 for outstanding bonded debt. For the purpose of this estimate, anticipated interest and sinking collections for each year were calculated as the difference between the total known amount of debt service due for that year less the amount of state aid anticipated under the FSP Instructional Facilities Allotment and Existing Debt Allotment. On a weighted student basis, the estimated collections would provide each charter holder with funding ranging from $776 to $850 per weighted student over the period. Based on projected charter school weighted student counts, the total amount of funding estimated to flow to charter holders would be $308.1 million in fiscal year 2016 and $335.7 million in fiscal year 2017, increasing to $369.4 million by fiscal year 2020.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 701 Central Education Agency
701 Central Education Agency
LBB Staff: UP, JBi, AM, JSp
UP, JBi, AM, JSp