LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION April 24, 2015 TO: Honorable Larry Taylor, Chair, Senate Committee on Education FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB669 by West (relating to state interventions and sanctions against public school campuses with unacceptable performance and the establishment of the Texas Opportunity School District for educating students at certain low-performing campuses.), Committee Report 1st House, Substituted No significant fiscal implication to the State is anticipated. The bill would create the Texas Opportunity School District (TOSD) to manage and operate campuses identified as unacceptable in the state accountability system for two consecutive school years that are removed from their home district at the discretion of the Commissioner of Education, pursuant to the provisions of the bill.For funding purposes, the bill stipulates that the TOSD would be entitled to Foundation School Program funding as if it were a district without a Tier 1 local share. The bill further stipulates that the FSP entitlement for the school district or charter holder from which the campus is removed is reduced by the amount received by the TOSD, including the Tier 1 local share. As such, TEA estimates the fiscal impact to the FSP to be neutral under the provisions of the bill.Based on the analysis of the Texas Education Agency, duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources. Local Government Impact School districts and open-enrollment charter schools with campuses in the TOSD would be required to collaborate with the TOSD. Districts and charters would be required to provide services at cost to the TOSD and would experience some administrative costs collaborating with the TOSD. Source Agencies:701 Central Education Agency, 323 Teacher Retirement System LBB Staff: UP, JBi, AM, SL, AW, AH LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION April 24, 2015 TO: Honorable Larry Taylor, Chair, Senate Committee on Education FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB669 by West (relating to state interventions and sanctions against public school campuses with unacceptable performance and the establishment of the Texas Opportunity School District for educating students at certain low-performing campuses.), Committee Report 1st House, Substituted TO: Honorable Larry Taylor, Chair, Senate Committee on Education FROM: Ursula Parks, Director, Legislative Budget Board IN RE: SB669 by West (relating to state interventions and sanctions against public school campuses with unacceptable performance and the establishment of the Texas Opportunity School District for educating students at certain low-performing campuses.), Committee Report 1st House, Substituted 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 SB669 by West (relating to state interventions and sanctions against public school campuses with unacceptable performance and the establishment of the Texas Opportunity School District for educating students at certain low-performing campuses.), Committee Report 1st House, Substituted SB669 by West (relating to state interventions and sanctions against public school campuses with unacceptable performance and the establishment of the Texas Opportunity School District for educating students at certain low-performing campuses.), Committee Report 1st House, Substituted No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would create the Texas Opportunity School District (TOSD) to manage and operate campuses identified as unacceptable in the state accountability system for two consecutive school years that are removed from their home district at the discretion of the Commissioner of Education, pursuant to the provisions of the bill.For funding purposes, the bill stipulates that the TOSD would be entitled to Foundation School Program funding as if it were a district without a Tier 1 local share. The bill further stipulates that the FSP entitlement for the school district or charter holder from which the campus is removed is reduced by the amount received by the TOSD, including the Tier 1 local share. As such, TEA estimates the fiscal impact to the FSP to be neutral under the provisions of the bill.Based on the analysis of the Texas Education Agency, duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources. Local Government Impact School districts and open-enrollment charter schools with campuses in the TOSD would be required to collaborate with the TOSD. Districts and charters would be required to provide services at cost to the TOSD and would experience some administrative costs collaborating with the TOSD. Source Agencies: 701 Central Education Agency, 323 Teacher Retirement System 701 Central Education Agency, 323 Teacher Retirement System LBB Staff: UP, JBi, AM, SL, AW, AH UP, JBi, AM, SL, AW, AH