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F I S C A L I M P A C T R E P O R T





SPONSOR: Gonzales DATE TYPED: 02/25/01 HB 9/aHEC
SHORT TITLE: Amend Public School Transportation Formula SB
ANALYST: Segura


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
 Recurring

or Non-Rec

 Fund

Affected

FY01 FY02 FY01 FY02
NFI



(Parenthesis ( ) Indicate Expenditure Decreases)



SOURCES OF INFORMATION



LFC Files

State Department of Education (SDE)



SUMMARY



Synopsis of HEC amendment



The House Education Committee amendment strikes one hundred and inserts ninety-five on page 3, lines 7 and 8. The amendment maintains the school transportation allocation.



Synopsis of Original Bill



House Bill 9 changes the transportation operational formula by amending the hold harmless provision and extending the hold harmless provision until the end of FY04.



Significant Issues

The transportation funding formula changed as a result of the 1999 special session. The formula modifications include calculations based on specific site characteristics.



The site characteristics that are currently being used were developed as part of the formula study.

Recommendations were provided to improve the funding formula by adding or changing site characteristics that would create a more equitable allocation of funds to each school districts. The recommended changes have not been implemented.



According to the SDE, the formula distribution without a hold harmless provision would have a significant impact on several school districts.



The amendment proposed in House Bill 9 maintains school transportation allocations. School districts would not receive less than 100% or more than 105% of the prior year's expenditure level.



FISCAL IMPLICATIONS



There is no fiscal impact. School districts are under a hold harmless for one more year.



OTHER SUBSTANTIVE ISSUES



According to SDE, the consequences of not enacting this bill would reduce the allocations to several school districts and each school district would realize a major redistribution beginning in FY03.



RS/njw:ar