LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 1, 1997
TO: Honorable Teel Bivins, Chair IN RE: Senate Bill No. 1480
Committee on Education By: Bivins
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB1480 ( Relating
to the diagnosis of reading development and comprehension at
certain grade levels in public school.) this office has detemined
the following:
Biennial Net Impact to General Revenue Funds by SB1480-As Introduced
Implementing the provisions of the bill would result in a net
negative impact of $(13,000,000) 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
Fiscal Analysis
The bill would provide that the commissioner
develop a list of reading diagnosis recommendations for school
districts for the kindergarten, first and second grade levels.
These recommendations shall address:
1) administering reading
instruments to diagnose student reading development and comprehension;
2)
training educators in administering the reading instruments
; and
3) applying the results of the reading instruments to
the instructional program.
The reading assessment instruments
are required only if state funds are appropriated. These funds
may be used to pay for the cost of administering the reading
instrument only if it was on the list adopted by the commissioner.
The
adoption of the list containing the reading instruments and
recommendations must be adopted by the commissioner not later
than August 1, 1998. Each school district shall implement a
reading diagnosis program in accordance with this section beginning
with the 1998-1999 school year.
This bill would take effect
September 1, 1997.
Methodolgy
It is estimated that development of a reading assessment program
would increase testing contracts and agency administration costs
by $6.5 million annually.
This bill requires the commissioner
to adopt a list of reading instruments and recommendations for
reading diagnosis not later than August 1, 1998. Also, it gives
the local district- and campus-level committees the opportunity
to adopt a different list than the commissioner's list. The
state will provide the funds to offset the cost of the reading
instruments that are on the commissioner's list, but the bill
does not permit funding for reading instruments if not on the
commissioner's list.
For the purpose of this bill, the Texas
Education Agency projects a total student enrollment for grades
K through 2 for the 1998-1999 school year at 925,000 students.
It is assumed that future enrollment will be at a comparable
level.
The cost of implementing a reading diagnostic instrument
is dependent upon the type of instrument chosen. This fiscal
note assumes only standardized diagnostic instruments will be
included on the commissioner's approved list, at a cost of about
$7 per student.
One FTE is needed to evaluate the instruments
and to reimburse school districts for costs associated with
this program. Annual costs of approximately $60,000 include
salary, benefits (calculated at 25.21% of base salary), travel
and operating expenses.
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 ($6,500,000) 1.0
1998 (6,500,000) 1.0
2000 (6,500,000) 1.0
2001 (6,500,000) 1.0
2002 (6,500,000) 1.0
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 ($6,500,000)
1999 (6,500,000)
2000 (6,500,000)
2001 (6,500,000)
2002 (6,500,000)
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
The fiscal implication to units of local government are described
below.
School districts will be reimbursed for the costs
for administering the reading instruments only if they adopt
a reading instrument that is included on the commissioner's
list. Otherwise, local school districts could incur additional
costs if they decide to use a reading instrument that is adopted
by their local district- and campus-level committees. If districts
chose to use alternative assessment instruments, the expected
maximum local cost would be estimated at $6.5 million, in which
case the state cost would be reduced.
The bill also proposes
recommendations to be developed by the commissioner for teacher
training for administering the reading instruments as well as
applying the results to the instructional programs. It appears
that the training and implementation expenses would be a local
cost. It can be argued that a school district could meet these
requirements by displacing/eliminating other staff development
topics.
Daily training costs are estimated at $40 per day
per teacher for professionally developed outside training.
If a school district adds training sessions, an average of $40
per teacher per day could occur at the local level. The number
of teachers that teach K through 2 grades is estimated about
42,000 teachers. Therefore, the cost for staff development
would be about $1,680,000 per day under this scenario. Some
districts may choose to replace existing professional development
programs, which may result in a lower net change in training
costs.
Source: Agencies: 701 Texas Education Agency - Administration
LBB Staff: JK ,LP ,TH