LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION May 1, 2023 TO: Honorable Brad Buckley, Chair, House Committee on Public Education FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB5294 by Muoz, Jr. (Relating to a proposition for certain school districts to be prohibited from imposing an ad valorem tax and to be operated and funded in the same manner as an open-enrollment charter school.), As Introduced No significant fiscal implication to the State is anticipated. The bill would repeal the authority of a district which operated under former Chapter 26, Texas Education Code, on May 1, 1995, to impose ad valorem taxes and would fund them as if they were an open enrollment charter school. The Texas Education Agency (TEA) has identified South Texas ISD (STISD) as a district for which the bill would apply.The bill would require the Board of Trustees of STISD to hold an election prohibiting the imposition of an ad valorem tax and providing for the district to be operated in the same manner as an open enrollment charter school.It is assumed that any costs associated with the bill could be absorbed using existing resources. Local Government ImpactTEA assumes that STISD would lose $34.4 million in local tax revenue annually and would receive $1.9 million in additional state funding annually under this bill. Source Agencies: b > td > 701 Texas Education Agency LBB Staff: b > td > JMc, KSk, ASA, MJe
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
May 1, 2023
TO: Honorable Brad Buckley, Chair, House Committee on Public Education FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB5294 by Muoz, Jr. (Relating to a proposition for certain school districts to be prohibited from imposing an ad valorem tax and to be operated and funded in the same manner as an open-enrollment charter school.), As Introduced
TO: Honorable Brad Buckley, Chair, House Committee on Public Education
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB5294 by Muoz, Jr. (Relating to a proposition for certain school districts to be prohibited from imposing an ad valorem tax and to be operated and funded in the same manner as an open-enrollment charter school.), 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
HB5294 by Muoz, Jr. (Relating to a proposition for certain school districts to be prohibited from imposing an ad valorem tax and to be operated and funded in the same manner as an open-enrollment charter school.), As Introduced
HB5294 by Muoz, Jr. (Relating to a proposition for certain school districts to be prohibited from imposing an ad valorem tax and to be operated and funded in the same manner as an open-enrollment charter school.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would repeal the authority of a district which operated under former Chapter 26, Texas Education Code, on May 1, 1995, to impose ad valorem taxes and would fund them as if they were an open enrollment charter school. The Texas Education Agency (TEA) has identified South Texas ISD (STISD) as a district for which the bill would apply.The bill would require the Board of Trustees of STISD to hold an election prohibiting the imposition of an ad valorem tax and providing for the district to be operated in the same manner as an open enrollment charter school.It is assumed that any costs associated with the bill could be absorbed using existing resources.
Local Government Impact
TEA assumes that STISD would lose $34.4 million in local tax revenue annually and would receive $1.9 million in additional state funding annually under this bill.
Source Agencies: b > td > 701 Texas Education Agency
701 Texas Education Agency
LBB Staff: b > td > JMc, KSk, ASA, MJe
JMc, KSk, ASA, MJe