Austin, Texas
                    FISCAL NOTE, 76th Regular Session
                              April 5, 1999
          TO:  Honorable Teel Bivins, Chair, Senate Committee on
        FROM:  John Keel, Director, Legislative Budget Board
       IN RE:  SB103  by Bivins (relating to state assessments of public
               school students), Committee Report 1st House, Substituted
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB103, Committee Report 1st House, Substituted:  positive impact      *
*  of $4,180,000 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                           $1,940,000  *
          *       2001                            2,240,000  *
          *       2002                            3,780,000  *
          *       2003                            4,280,000  *
          *       2004                            4,180,000  *
All Funds, Five-Year Impact:
*Fiscal    Probable Savings/(Cost) from    Probable Savings/(Cost) from   *
* Year        Foundation School Fund           General Revenue Fund       *
*                      0193                            0001               *
*  2000                        $1,940,000                              $0 *
*  2001                         2,240,000                               0 *
*  2002                         3,780,000                               0 *
*  2003                         4,280,000                               0 *
*  2004                         4,280,000                       (100,000) *
Fiscal Analysis
CSSB103 would expand the state assessment system to include new math
tests for grades 9 and 10 and new reading tests for grade 9.  Under the
guidelines of the bill, science assessments would be administered in
grades 5 and 10, and social studies assessments would be administered in
grades 7 and 10.  CSSB103 adds an English language arts assessment for
grade 10.

The bill would replace end-of-course assessments with 11th grade exit
tests.  Students who could not pass social studies and science, in
addition to English language arts and math, exit level tests (in the 11th
grade) would not be awarded high school diplomas.  The bill would also
allow TASP exemption for students whose exit level assessment performance
met guidelines to be established by the Higher Education Coordinating

Contingent on the passage of Senate Bill 1, CSSB103 would permit the
Texas Education Agency to delay release of test questions and answer keys
until five years after the test administration date.  If Senate Bill 1
does not pass, however, the agency would be directed to release tests
after the last assessment of the school year.

CSSB103 would require the agency to include new assessment results in the
accountability ratings system no later than fiscal year 2007.  The
testing program established in Section 39.023 of the Texas Education Code
would be repealed August 31, 2007.

CSSB103 would also instruct the Texas Education Agency to evaluate the
effectiveness of the tests described in Subchapter B, Chapter 39 of the
Texas Education Code.
According to the Texas Education Agency, the implementation of new
assessments called for in SB103 would cost $10.45 million for the
2000-2001 biennium.  The costs would be for test development and
administration, and would be funded from a set aside out of the
compensatory education allotment.  The amount set aside from the
allotment in fiscal year 2000 would be $4.85 million, rising to $5.6
million in fiscal year 2001.

Due to reduction in the compensatory education 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 $1.94 million in fiscal year 2000
and $2.24 million in fiscal year 2001.

Assessment costs, and thus state savings, would rise as new tests leave
development and enter administration during the next five years.  Due to
the increased cost associated with administration, the state would save
$3.78 million in Tier II state aid during fiscal year 2002, ultimately
rising to $4.28 million in fiscal year 2003 and $4.18 million in fiscal
year 2004.

The Texas Education Agency estimates that evaluation of test
effectiveness would cost $100,000 beginning in fiscal year 2004.
Local Government Impact
Local school districts that receive compensatory education funds would
see a slight reduction in their allotment, because of the funds
set-aside for assessment design and administration.
Source Agencies:   
LBB Staff:         JK, CT, CW