LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 23, 1997
TO: Honorable Paul Sadler, Chair IN RE: Senate Bill No. 519, Committee Report 2nd House, Substituted
Committee on Public Education By: Bivins
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB519 ( Relating
to the issuance of charters for open-enrollment charter schools
by the State Board of Education.) this office has detemined
the following:
Biennial Net Impact to General Revenue Funds by SB519-Committee Report 2nd House, Substituted
Implementing the provisions of the bill would result in a net
negative impact of $(341,466) 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
This bill raises the current cap on the number of open-enrollment
charter schools from 20 to 70 or more by authorizing the State
Board of Education to grant as many charters as there are applicants
meeting certain conditions. Specifically, this bill would permit
the education board to grant up to 70 of the current open-enrollment
charter schools (for any group of students) beginning in 1997-98,
an increase of 50 charters. The board would be authorized to
grant an additional 50 charters in 1998-99 up to a total of
120 for the biennium.
Also beginning in 1997-98, the board
would be authorized to grant charters to schools targeting populations
such as disciplinary problems, limited English proficient (LEP),
low achievement test scores, behind grade level, adjudicated,
or physically, psychologically, or sexually abused students.
To the extent that district alternative education programs,
community based alternative education programs, and county based
juvenile justice alternative education programs become eligible
for charter status, funding sources may change, but no significant
impact to general revenue will occur. To the extent that new
students currently not enrolled in public schools are enrolled
in charter schools, costs to the state would be approximately
$4,900 per student.
Methodolgy
The bill provides for two different types of charters and does
not limit the number of charter schools that serve the specific
populations described in the bill. Based on the number of current
school district, county and community based alternative education
programs currently operating in the state that serve the target
student populations outlined in the bill, and that these programs
would be "turn-key" programs immediately eligible for charter
status, it is assumed that as many as a total of 100 charters
per year could be granted under the provisions of this bill.
To the extent that students are currently enrolled in the
public schools, there is no significant fiscal impact to the
state. However, the Texas Education Agency would incur increased
personnel and administrative costs. The agency estimates one
FTE per 50 charters at salary group 18. A fewer number of charters
granted per year would correspondingly reduce the agency's costs.
These anticipated costs are presented in the following chart.
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 General Employees from
Revenue Fund FY 1997
0001
1998 ($113,822) 2.0
1998 (227,644) 4.0
2000 (227,644) 4.0
2001 (227,644) 4.0
2002 (227,644) 4.0
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 ($113,822)
1999 (227,644)
2000 (227,644)
2001 (227,644)
2002 (227,644)
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
The probable fiscal implications to units of local government
are described below.
No costs would be associated with converting
current public school alternative education programs to charter
schools. To the extent that new students who are not currently
in public schools are enrolled in charter schools, districts'
costs would be expected to increase, but no significant fiscal
impact is anticipated at the local level.
Source: Agencies: 701 Texas Education Agency - Administration
LBB Staff: JK ,DH ,TH ,GJ