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F I S C A L I M P A C T R E P O R T
SPONSOR Rodriguez
ORIGINAL DATE
LAST UPDATED
2/6/06
HB
SHORT TITLE Cost of School District Capital Improvements
SB 736
ANALYST Aguilar
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
None
See Fiscal Implications
(Parenthesis ( ) Indicate Expenditure Decreases)
Relates to SB 211, SB 450 and HB 432
SOURCES OF INFORMATION
LFC Files
Responses Received From
Public Education Department (PED)
SUMMARY
Synopsis of Bill
Senate Bill 736 provides a portion of tax revenues to be expended for administering public
school capital improvements and for facility maintenance software, project management soft-
ware and project oversight, provided that the expenditures do not exceed 5% of the total project
costs.
FISCAL IMPLICATIONS
The provisions of SB-736 apply to those districts that assess levies authorized under the Capital
School Buildings Act, otherwise known as the HB-33 local levy. This levy is in place in 10
school districts and generates approximately $121.8 million. This bill allows up to 5 percent of a
total project cost to be used for administering capital improvement projects which if all 5 percent
were utilized would total $6.1 million.
pg_0002
Senate Bill 736 Page 2
SIGNIFICANT ISSUES
Revenues generated by the HB-33 levy are restricted to use only for erecting, remodeling, mak-
ing additions to, providing equipment for or furnishing public school buildings, purchasing or
improving public school grounds and lease payments to fulfill lease purchase agreements for
education technology equipment. Removing $6.1 million for administrative costs would reduce
the funds available for improvements.
PA/yr