LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session April 13, 1999 TO: Honorable Paul Sadler, Chair, House Committee on Public Education FROM: John Keel, Director, Legislative Budget Board IN RE: HB3675 by Garcia (Relating to certain assessment instruments administered to public school students), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB3675, As Introduced: positive impact of $491,932 through the * * biennium ending August 31, 2001. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $247,466 * * 2001 244,466 * * 2002 644,666 * * 2003 644,666 * * 2004 644,666 * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Savings/(Cost) from * * Foundation School Fund * * 0193 * * 2000 $247,466 * * 2001 244,466 * * 2002 644,666 * * 2003 644,666 * * 2004 644,666 * ***************************************************** Fiscal Analysis The bill would require the development of an assessment instrument to evaluate TAAS-exempt students of limited English proficiency who are instructed in English because of a shortage in certified bi-lingual education teachers. Performance on the new assessments would be included in the Academic Excellence Indicator System (AEIS) no later than fiscal year 2001. Methodology The Texas Education Agency is currently developing English reading tests for students of limited English proficiency. These tests would cover students in grades 3 through 8. This test development is not being done for secondary-level ESL (English for as a Second Language) students. The development of a reading proficiency test for ESL students would create costs for the Texas Education Agency. TEA estimates that the annual cost of design and administration for secondary-level ESL reading proficiency tests would be $1.23 million for the 2000-2001 biennium, ultimately rising to $1.61 million per year in 2002-2004. Costs would be funded from a set-aside out of the compensatory education allotment. Due to reduction in the allotment, the bill would create a net savings for the state through lowered Tier II state aid. The net savings to the state would be $491,932 for the 2000-2001 biennium, and $644,666 per year thereafter. Local Government Impact Local school districts that receive compensatory education funds would experience a slight reduction in their allotment because of funds being set-aside for assessment development. Source Agencies: 701 Texas Education Agency - Administration LBB Staff: JK, CT, CW