LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 26, 1997
TO: Honorable Paul Sadler, Chair IN RE: House Bill No. 1800
Committee on Public Education By: Hochberg
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB1800 ( Relating
to state administered assessment instruments for students in
special education programs.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB1800-As Introduced
Implementing the provisions of the bill would result in a net
positive impact of $4,316,658 to General Revenue Related Funds
through the biennium ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
The bill would require the development and administration of
an alternative statewide assessment instrument for students
in special education for whom the standard statewide assessment
does not appropriately measure achievement. The assessment
to be developed would have to be based on the existing statewide
assessment and would have to assess students performance and
growth in reading, mathematics, and writing.
Methodolgy
It is estimated that development of an alternative assessment
program would increase testing contracts by $5 million annually.
Administrative
costs at the Texas Education Agency are estimated at approximately
$400,000 annually for eight (8) additional FTEs required to
develop and maintain the alternative assessment program. Total
costs for these FTEs, include salaries, benefits (calculated
at 25.52% of base salary), travel and operating expenses.
Both
testing and administrative costs would be funded through a set-aside
of Foundation School Program payments to districts.
Based
on statutory funding for the costs of preparing and administering
state student assessment instruments through the set-aside out
of the Compensatory Education Allotment (Section 39.031, Education
Code) the costs associated with an alternative assessment would
have no impact on total state costs. The reduction in Foundation
Payments to districts would decrease Guaranteed Yield payments
to districts by about 40% of the decrease in the Foundation
School Program at an estimated savings to the state of $2,158,329
annually.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Change in Number
Savings/(Cost) of State
from Foundation Employees from
School Fund FY 1997
0193
1998 $2,158,329 8.0
1998 2,158,329 8.0
2000 2,158,329 8.0
2001 2,158,329 8.0
2002 2,158,329 8.0
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $2,158,329
1999 2,158,329
2000 2,158,329
2001 2,158,329
2002 2,158,329
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No significant fiscal implication to units of local government
is anticipated.
Local school districts would realize a
reduction in Compensatory Education payments from the state.
The amount of the reduction will vary on a district basis depending
on local district wealth and the size of the districts' allotment
for Compensatory Education.
Because districts already administer
tests on the same schedule proposed for these assessments and
because Admission, Review and Dismissal committees already address
special education student assessment issues, no additional costs
to school districts are anticipated.
Source: Agencies: 701 Texas Education Agency - Administration
LBB Staff: DH ,JK ,TH