84th Texas Legislature, Regular Session, House Bill 1474, Chapter 731 Page: 7 of 11
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Fiscal Analysis
The bill would require the State Board of Education (SBOE) to set aside 50 percent of the
distribution from the permanent school fund (PSF) to the available school fund (ASF) to be placed
in the instructional materials fund (IMF) on a biennial basis instead of an annual basis. The bill
would entitle school districts to the instructional materials allotment (IMA) on a biennial basis
instead of an annual basis and require IMA funding to be available in the first year of each
biennium.
The bill would require the Comptroller of Public Accounts, to the extent authorized by the General
Appropriations Act, to allow the Texas Education Agency (TEA) to make temporary transfers from
the foundation school fund (FSF) to pay for the instructional materials allotment as needed.
The bill would take effect September 1, 2015.
Methodology
This estimate assumes TEA will make a temporary transfer from the FSF to the IMF in the amount
of approximately $1.1 billion at the beginning of fiscal year 2016 and that approximately $1.1
billion from the IMF will be sent to school districts in a biennial IMA in September 2015.
Based on information provided by the Comptroller of Public Accounts, there would be a $4.2
million loss of expected interest earnings to the FSF in the first year of each biennium based on a
0.8 percent projected rate of return on the FSF. This estimate assumes that the temporary transfer
would be totally repaid to the FSF early in the second year of each biennium and there would be
no loss of interest earnings in the second year of the biennium. The estimate further assumes the
temporary transfer amount and repayment pattern would be the same in future biennia.
To the extent that a temporary transfer from the FSF to the IMF was not allowed and the TEA was
required to transfer funds from the PSF, losses would vary due to the loss of expected investment
returns.
Local Government Impact
The bill would make funding available earlier in the school year to school districts and open-
enrollment charter schools to purchase instructional materials and may prevent districts from
borrowing from local funds to pay for these materials.
Source Agencies: 304 Comptroller of Public Accounts, 701 Central Education Agency
LBB Staff: UP, AW, JBi, AM, SDPage 2 of 2
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Reference the current page of this Legislative Document.
Texas. Legislature. House of Representatives. 84th Texas Legislature, Regular Session, House Bill 1474, Chapter 731, legislative document, June 17, 2015; [Austin, Texas]. (https://texashistory.unt.edu/ark:/67531/metapth704801/m1/7/?rotate=270: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.