HBA-TBM S.B. 1728 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1728 By: Cain Public Education 5/6/2001 Engrossed BACKGROUND AND PURPOSE Under current law, the state equalizes certain bond payments for a school district under the instructional facilities allotment (IFA) and the existing debt allotment (EDA). The local share of the guaranteed yield is required to be paid from interest and sinking fund (I&S) taxes levied to raise revenue to pay the principal and interest on debt. Although the district is authorized to legally use a variety of other local funds for debts payments, those funds cannot count toward the district's local share, thus causing some districts to levy higher than necessary I&S taxes to receive the full guaranteed yield from the state. Senate Bill 1728 authorizes a district to use alternative local funds to meet the district's local share. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS Senate Bill 1728 amends the Education Code to provide that the amount of taxes budgeted to be collected by a public school district for payment of eligible bonds under the instructional facilities allotment and the existing debt allotment is authorized to include: _bond taxes collected in the current school year; _bond taxes collected in a preceding school year in excess of the amount necessary to pay the districts's share of actual debt service on bonds in that year; _maintenance and operations taxes collected in the current or the preceding school year in excess of the amount used to generate other state financial assistance for the district; or _any local money, including donations and grants, not obtained from a governmental source or used to generate other state financial assistance for the district. EFFECTIVE DATE September 1, 2001.