LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              April 21, 1999
  
  
          TO:  Honorable Teel Bivins, Chair, Senate Committee on
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB3 by Bivins (relating to master reading teacher
               certification and allotments), As Introduced
  
**************************************************************************
*  Estimated Two-Year Net Impact to General Revenue Related Fundsfor     *
*  SB3, As Introduced:  negative impact of $(22,185,000) through the     *
*  biennium ending August 31, 2001.                                      *
*                                                                        *
*  The bill would make no appropriation but could provide the legal      *
*  basis for an appropriation of funds to implement the provisions of    *
*  the bill.                                                             *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Net Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2000                           $(350,000)  *
          *       2001                         (21,835,000)  *
          *       2002                         (22,440,000)  *
          *       2003                         (22,860,000)  *
          *       2004                         (23,470,000)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2000                               $(350,000) *
         *      2001                             (21,835,000) *
         *      2002                             (22,440,000) *
         *      2003                             (22,860,000) *
         *      2004                             (23,470,000) *
         *****************************************************
  
Fiscal Analysis
  
The bill would create a master reading teacher designation and salary
supplements.  Allotments of $5,000 for each 1,000 students in average
daily attendance (ADA) is provided, with exceptions for districts with
less than 1,000  students of $5,000 per district, or between 1,000 and
2,000 students for $10,000 per district.  Each low-performing campus
would generate an additional allotment of $14,000.  Allotments would be
paid as $5,000 teacher stipends at regular campuses and $7,000 stipends
at low-performing schools.
For the 2000-01 school year, stipends may be paid to reading specialists
that complete certain training.  After that year, the stipends would be
limited to master reading teacher certificate holders.
  
  
Methodology
  
The Texas Education Agency estimates the cost of full allotments at
$21,205,000 for fiscal year 20001, assuming 4,241 allotments in that
year.  The number of allotments would increase as school districts ADA
grows.

Because allotments may be reduced by the commissioner of education when
teachers do not meet requirements for a stipend, the actual cost may be
less than what is reflected above.  Additional allotments for
low-performing campuses are estimated at $630,000 per year, based on 45
campuses at $14,000 each.

Also, this note includes $350,000 in fiscal year 2000 to the State Board
of Educator Certification for development of Master Reading Teacher
standards and the Master Reading Teacher exam.
  
  
Local Government Impact
  
School districts would receive additional state funding for master
reading teaching allotments, as reflected in the table above.
  
  
Source Agencies:   701   Texas Education Agency - Administration
LBB Staff:         JK, BB, RN