LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION April 20, 2023 TO: Honorable Brad Buckley, Chair, House Committee on Public Education FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1572 by Dutton (Relating to instructional facilities funding for certain open-enrollment charter schools.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1572, As Introduced : a negative impact of ($617,027,668) through the biennium ending August 31, 2025. 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 toGeneral Revenue Related Funds2024($299,430,658)2025($317,597,010)2026($329,089,199)2027($338,104,169)2028($343,853,670)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromFoundation School Fund1932024($299,430,658)2025($317,597,010)2026($329,089,199)2027($338,104,169)2028($343,853,670) Fiscal AnalysisThe bill would amend the formula for instructional facilities funding for certain open-enrollment charter schools. The bill would remove the option to multiply funds per student by the rate that would result in a total amount charter schools are entitled to that would equal to $60 million for the current year.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
April 20, 2023
TO: Honorable Brad Buckley, Chair, House Committee on Public Education FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1572 by Dutton (Relating to instructional facilities funding for certain open-enrollment charter schools.), As Introduced
TO: Honorable Brad Buckley, Chair, House Committee on Public Education
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB1572 by Dutton (Relating to instructional facilities funding for certain open-enrollment charter schools.), As Introduced
Honorable Brad Buckley, Chair, House Committee on Public Education
Honorable Brad Buckley, Chair, House Committee on Public Education
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB1572 by Dutton (Relating to instructional facilities funding for certain open-enrollment charter schools.), As Introduced
HB1572 by Dutton (Relating to instructional facilities funding for certain open-enrollment charter schools.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1572, As Introduced : a negative impact of ($617,027,668) through the biennium ending August 31, 2025. 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 HB1572, As Introduced : a negative impact of ($617,027,668) through the biennium ending August 31, 2025. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
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:
2024 ($299,430,658)
2025 ($317,597,010)
2026 ($329,089,199)
2027 ($338,104,169)
2028 ($343,853,670)
All Funds, Five-Year Impact:
2024 ($299,430,658)
2025 ($317,597,010)
2026 ($329,089,199)
2027 ($338,104,169)
2028 ($343,853,670)
Fiscal Analysis
The bill would amend the formula for instructional facilities funding for certain open-enrollment charter schools. The bill would remove the option to multiply funds per student by the rate that would result in a total amount charter schools are entitled to that would equal to $60 million for the current year.
Methodology
The bill would remove the $60 million cap on instructional facilities funding for open-enrollment charter schools. Open-enrollment charter schools would under this bill be entitled to per ADA funding for instructional facilities equal to the guaranteed level of state and local funds per student per cent of tax effort under Section 46.032(a) multiplied by the state average interest and sinking fund tax rate imposed by school districts for the current year. The Texas Education Agency estimates that the cost to the Foundation School Program would be $299.4 million in fiscal year 2024, $317.6 million in fiscal year 2025, increasing to $343.9 million in fiscal year 2028.
Local Government Impact
Open-enrollment charter schools could receive more state funding for instructional facilities as the cap of $60 million is removed.
Source Agencies: b > td > 701 Texas Education Agency
701 Texas Education Agency
LBB Staff: b > td > JMc, KSk, ASA, MJe, CMA
JMc, KSk, ASA, MJe, CMA