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