Estimated Two-year Net Impact to General Revenue Related Funds for SB9, As Engrossed : a negative impact of ($1,990,247,393) through the biennium ending August 31, 2025.

To implement the program, TEA assumes it would run a competitive solicitation process to select a third-party vendor who would provide the liability insurance and other supports described in the section. In developing the cost estimate to implement the program, the agency assumed estimated annual liability insurances cost of $125 per educator with the educator contributing $25 and a $100 subsidy from the state. After an initial planning year in fiscal year 2024, TEA estimates an uptake of 17,000 teachers at a cost of $1.7 million in fiscal year 2025, increasing to $6.8 million in fiscal year 2028. The agency indicates that a Program Specialist VII would be required to manage the procurement process. 

The amount appropriated to the Employed Retiree Teacher Reimbursement Grant Program is unspecified, and the legislature may restrict eligibility for the program by appropriation; therefore, costs cannot be determined. As an illustrative example of the potential cost, in fiscal year 2022 TRS received a total of approximately $40.0 million for retirement program surcharges and $11.0 million for TRS-Care surcharges, including both employee and employer surcharges for all positions. To administer the grant program, TEA would require an Education Specialist V to develop, oversee, and improve the grant program. The bill would not make changes to the amount of the TRS retirement contribution, just the source of the funding; therefore, TRS assumes there would be no significant impact to the agency from this provision.

To administer Section 21.466, Teacher Quality Assistance, TEA assumes funding would be required for development and implementation of supports, technical assistance to support LEAs in implementing improvements, and grants to LEAs. The agency assumes development of strategic scheduling, staffing, and compensation modules to support technical assistance would cost $1,500,000 in fiscal year 2024. The agency assumes grants for delivery of technical assistance would cost $2,250,000 in fiscal year 2024 and $4,500,000 annually in fiscal years 2025-28. Grants to LEAs to support implementation of strategic staffing, scheduling, and compensation systems is assumed to cost $4,000,000 annually in fiscal years 2025-28. Technical assistance grants to support school leaders develop school culture routines and discipline systems would cost $3,000,000 annually in fiscal years 2024-28. Technical assistance grants to LEAs to establish grow-your-own partnerships is assumed to cost $1,500,000 annually. The development of teacher leader and co-teacher training modules would cost $500,000 annually in fiscal years 2024-25 and $100,000 annually in fiscal years 2026-28. Technical assistance grants to LEAs to support the development of teacher leadership roles is assumed to cost $1,250,000 annually.

The agency assumes a Director I and five Education Specialist Vs would be required to implement this section in fiscal years 2024-2028.

To administer the Teacher Time Study, TEA assumes a cost of $500,000 in fiscal year 2024 and $50,000 annually in fiscal years 2025-28 would be required for the development and implementation of the study. The agency assumes that $750,000 in fiscal year 2024 and $1.5 million annually in fiscal years 2025-28 would be required for technical assistance to LEA. The agency assumes $3.0 million annually in fiscal years 2025-28 would be required to provide grants to LEAs under this section. TEA assumes this section would be administered by a Director II, an Education Specialist V, and a Data Analyst IV.

To provide technical assistance and support to school districts, charter schools, and qualified EPPs regarding teacher residency strategic staffing and compensation models and recruitment supports, TEA would administer grants to all 20 education service centers (ESCs) to provide Texas Strategic Staffing technical assistance support. The grants would fund two full-time positions at each ESC. Beginning in fiscal year 2024, and in subsequent years, the agency assumes funding would be required for 40 total positions. Additionally, the agency assumes three statewide leads would be needed to support the service quality and sustainability. The agency estimates that total funding for fiscal years 2024-28 would be $6.5 million. Additionally, the agency assumes $10,000 annually in fiscal years 2024-28 would be required to update data tools provided to EPPs and LEAs to support implementation of the program.

To support educator preparation programs to meet the requirements for a qualified residency program as outlined by the SBEC, TEA would provide grants to EPPs to pay for technical assistance and other transformation supports. TEA anticipates that 10 EPPs would be engaged in transformation annually and would require $200,000 each, for a total of $2,000,000 annually in fiscal years 2024-28. The agency assumes nine FTEs would be required to administer this section.

The agency estimates that approximately 6,000 students that are children of classroom teachers would be eligible for half-day prekindergarten under the FSP as a result of this bill. This analysis assumes that estimated state cost to the FSP would be $17,160,304 in fiscal year 2024 and $17,206,617 in fiscal year 2025, increasing to $17,294,207 in fiscal year 2028.

The bill would provide increases to the allotments under TIA. The agency assumes costs would increase annually based on increased adoption of local optional teacher designation systems, the additional designation band, and the higher allotment values in the calculation. This analysis assumes the cost to the FSP under this section would be $71.0 million in fiscal year 2024, $181.3 million in fiscal year 2025, increasing to $605.7 million in fiscal year 2028. The Texas School for the Blind and Visually Impaired (TSBVI) assumes that 22 of their educators would qualify for an allotment under this section at an estimates state cost of $264,000 annually.

The agency assumes there would be administrative costs associated with implementing the amendments to the the Mentor Program Allotment under the FSP. The following FTEs would be required starting in fiscal year 2024: a Director I and two Education Specialist V positions would be required to support and oversee the statewide mentor training program and implement the new program and allotment; a Data Analyst IV position would be required to track district participation and develop systems through which to analyze the effectiveness of the program. To oversee the data analysts contributing to the requirements of this bill, TEA would require an additional 0.5 Director I position.  TEA indicates that a Financial Analyst IV would be required to support the new allotments. Additionally, the agency estimates that the cost of content development under this section would be $500,000 annually in fiscal years 2024-25 and the cost of developing teacher training implementation support would be $1,500,000 annually in fiscal years 2025-26. 

Participation in the mentor program is assumed to increase as a result of this bill. Based on assumptions of the uptake across districts, the agency assumes that the costs to the FSP under this section would not begin until fiscal year 2025. This analysis assumes that the the state cost to the FSP under this section would be $13.9 million in fiscal year 2025, $20.9 million in fiscal year 2025, increasing to $27.9 million in fiscal year 2028. 

The bill would establish the Residency Partnership Allotment under the FSP. The agency anticipates overall resident salary estimates based on average paraprofessional and educational aide salaries and informed by average district match amounts of $12,000 generated by LEAs through Texas piloting of teacher residency strategic staffing models. The agency assumes additional costs to implement the program would include tuition supports and wrap-around service stipends for residents or prospective residents to support recruitment efforts as well as funding for LEA and EPP implementation supports. Funding would vary based on high needs and rural factors. Finally, a $2,000 stipend would flow to the mentor teacher and to residents seeking certification in special education. 

Based on current estimates of teacher resident production and technical assistance capacity, TEA staff anticipate approximately 2,800 residents produced annually at an overall estimated cost of $89.6 million annually in fiscal years 2025-28. Administrative costs related to this section are covered elsewhere in this fiscal analysis. TSBVI assumes that four of their residents would qualify for the allotment at an estimated state cost of $88,000 annually.

The bill would establish the Funding for Certain Certification Fees allotment under the FSP. There are two Special Education certificates: Special Education: EC-12 and Special Education Supplemental, and six Bilingual certificates: Bilingual Education Supplemental Spanish, Bilingual Education Supplemental American Sign Language, Bilingual Education Supplemental Arabic, Bilingual Education Supplemental Chinese, Bilingual Education Supplemental Japanese, and Bilingual Education Supplemental Vietnamese. Based on annual certificate issuance trends, the agency estimates approximately 23,193 individuals would be issued a certificate in fiscal year 2024, across all certification pathways, with an anticipated 2% increase annually. Based on annual exam administration trends, the agency estimates approximately 6,070 special education exam and 3,119 bilingual exam reimbursements would be required, with an anticipated 2% increase annually. The agency assumes that exam costs would be either $116 or $136 dependent upon the exam. This analysis assumes the cost to the FSP under this section would be approximately $1.1 million in each fiscal year.

The bill would establish the Teacher Retention Allotment under the FSP. This analysis assumes the state cost to the FSP related to the salary increase would only exist in fiscal year 2024. The total cost of the teacher salary increase is estimated to be $1,625.0 million per fiscal year. This cost assumes local employer benefits costs of 8.25 percent for TRS retirement and 0.75 percent for TRS-Care. Additionally, this analysis assumes state cost of additional 1.25 percent TRS-Care contributions would be $18.6 million annually. An increase in teacher salaries would impact benefits paid from and contributions paid to the TRS Pension Trust Fund. According to the Pension Review Board, the Teacher Retirement System (TRS) is considered actuarially sound, with an amortization period of 27 years as of August 31, 2023. Government Code, Section 821.006 defines actuarial soundness, for the purposes of making modifications to benefit and contribution levels, as less than 31 years. The projected funding period for TRS would increase to 28 years following the passage of this bill. 

The sections of the bill that would increase entitlement under the FSP would result in decreases in Recapture Payments ­- Attendance Credits. This analysis estimates that the decrease in recapture would be $282.5 million in fiscal year 2024, decreasing to $63.0 million in fiscal year 2025, and increasing again to $165.2 million in fiscal year 2028. The decrease from fiscal year 2024 to 2025 is primarily due to the state cost of the Teacher Retention Allotment only being applicable in fiscal year 2024. The decrease in recapture is reflected as a savings in the table above because recapture is appropriated as a method of finance for the FSP in the General Appropriations Act.

The agency assumes there would be additional administrative costs associated with this bill in the form of 4.5 general support FTEs. Additionally, the agency assumes FTEs would be required for implementing various technological requirements related to the bill. These are covered in the technology section. This analysis assumes that the total cost for FTEs required to implement this bill would be $5.2 million in fiscal year 2024 and $6.3 million in fiscal years 2025-28.

This analysis assumes that TEA would also require FTEs, included in totals and costs in the previous section, to provide ongoing support and maintenance across applications. This analysis assumes that 3 FTEs would be required in fiscal year 2024. After the initial development year, this analysis assumes 10 FTEs would be required for fiscal years 2025-2028.