LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION April 24, 2023 TO: Honorable Brad Buckley, Chair, House Committee on Public Education FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3028 by Meyer (relating to a credit for prepayment of the amount required to be paid by a school district for the purchase of attendance credit under the public school finance system.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for HB3028, Committee Report 1st House, Substituted : a negative impact of ($384,039,883) 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($182,972,477)2025($201,067,406)2026($207,414,763)2027($226,888,319)2028($237,977,388)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromFoundation School Fund193 Probable Savings/(Cost) fromRecapture Payments Atten Crdts89052024($182,972,477)$182,972,4772025($201,067,406)$201,067,4062026($207,414,763)$207,414,7632027($226,888,319)$226,888,3192028($237,977,388)$237,977,388 Fiscal AnalysisThe bill would amend Subchapter D, Chapter 49, Education Code, by adding section 49.1541 to provide credit for prepayment of the amount required to be paid by a school district for the purchase of attendance credit under the public school finance system. The proposed amendment would entitle a school district to receive a credit against the total amount required under Section 49.153. The credit would be equal to four percent of any amount required to be paid by the district if the district pays that amount not later than February 15 of the school year for which the agreement is in effect.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
April 24, 2023
TO: Honorable Brad Buckley, Chair, House Committee on Public Education FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3028 by Meyer (relating to a credit for prepayment of the amount required to be paid by a school district for the purchase of attendance credit under the public school finance system.), Committee Report 1st House, Substituted
TO: Honorable Brad Buckley, Chair, House Committee on Public Education
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB3028 by Meyer (relating to a credit for prepayment of the amount required to be paid by a school district for the purchase of attendance credit under the public school finance system.), Committee Report 1st House, Substituted
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
HB3028 by Meyer (relating to a credit for prepayment of the amount required to be paid by a school district for the purchase of attendance credit under the public school finance system.), Committee Report 1st House, Substituted
HB3028 by Meyer (relating to a credit for prepayment of the amount required to be paid by a school district for the purchase of attendance credit under the public school finance system.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB3028, Committee Report 1st House, Substituted : a negative impact of ($384,039,883) 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 HB3028, Committee Report 1st House, Substituted : a negative impact of ($384,039,883) 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 ($182,972,477)
2025 ($201,067,406)
2026 ($207,414,763)
2027 ($226,888,319)
2028 ($237,977,388)
All Funds, Five-Year Impact:
2024 ($182,972,477) $182,972,477
2025 ($201,067,406) $201,067,406
2026 ($207,414,763) $207,414,763
2027 ($226,888,319) $226,888,319
2028 ($237,977,388) $237,977,388
Fiscal Analysis
The bill would amend Subchapter D, Chapter 49, Education Code, by adding section 49.1541 to provide credit for prepayment of the amount required to be paid by a school district for the purchase of attendance credit under the public school finance system. The proposed amendment would entitle a school district to receive a credit against the total amount required under Section 49.153. The credit would be equal to four percent of any amount required to be paid by the district if the district pays that amount not later than February 15 of the school year for which the agreement is in effect.
Methodology
The Texas Education Agency based their analysis on the scenario in which all recapture districts would elect for the prepayment. The fiscal impact to the state would be $183.0 million in fiscal year 2024, $201.1 million in fiscal year 2025, increasing to $238.0 million in fiscal year 2028. The decrease in recapture is reflected as a savings in the table above because recapture is appropriated as a method of finance for the FSP in the General Appropriations Act. The reduction in recapture results in a cost to Foundation School Fund, No. 193.
Local Government Impact
School districts electing for the prepayment would receive a credit against the total amount of required payments under Section 49.153; this would result in increased revenue for those districts.
Source Agencies: b > td > 701 Texas Education Agency
701 Texas Education Agency
LBB Staff: b > td > JMc, KSk, ASA, MJe
JMc, KSk, ASA, MJe