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