LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 5, 1997 TO: Honorable Paul Sadler, Chair IN RE: House Bill No. 2051, Committee Report 1st House, Substituted Committee on Public Education By: Garcia House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB2051 ( Relating to state assessment instruments administered to public school students.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB2051-Committee Report 1st House, Substituted Implementing the provisions of the bill would result in a net positive impact of $1,369,996 to General Revenue Related Funds through the biennium ending August 31, 1999. Fiscal Analysis The bill would require the development and implementation of a reading proficiency test for evaluating the progress of limited English proficiency (LEP) students who are instructed in English because of a shortage of teachers with teaching certificates appropriate for bilingual education instruction. Methodolgy It is estimated that development of an reading proficiency test would increase testing contracts by $1.5 million annually. Administrative costs at the Texas Education Agency are estimated at approximately $212,494 annually for four (4) additional FTEs required to develop and maintain the reading proficiency 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 a reading proficiency test 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 $684,998 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 $684,998 4.0 1998 684,998 4.0 2000 684,998 4.0 2001 684,998 4.0 2002 684,998 4.0 Net Impact on General Revenue Related Funds: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 $684,998 1999 684,998 2000 684,998 2001 684,998 2002 684,998 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. Source: Agencies: 701 Texas Education Agency - Administration LBB Staff: JK ,DH ,TH