LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session February 17, 1999 TO: Honorable Teel Bivins, Chair, Senate Committee on Education FROM: John Keel, Director, Legislative Budget Board IN RE: SB110 by Haywood (Relating to salaries of public school classroom teachers and librarians), As Introduced ************************************************************************** * Two-year Net Impact to General Revenue Related Funds for SB110, As * * Introduced: negative impact of $(8,200,000) 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 Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $(4,100,000) * * 2001 (4,100,000) * * 2002 (4,100,000) * * 2003 (4,100,000) * * 2004 (4,100,000) * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Savings/(Cost) from * * General Revenue Fund * * 0001 * * 2000 $(4,100,000) * * 2001 (4,100,000) * * 2002 (4,100,000) * * 2003 (4,100,000) * * 2004 (4,100,000) * ***************************************************** Fiscal Analysis This bill amends the Education Code to extend the current minimum salary schedule for teachers to include additional steps for teachers and librarians with more than 20 years of experience. For each additional year of experience, a teacher would be entitled to a minimum salary of approximately 1-1.5% more than the year previous. Methodology This year (1998-1999), 62,194 teachers or librarians with more than 20 years of experience are employed. Based on the reported actual pay of these individuals, 17,542 were paid less than the minimum salary proposed by this bill. In order to reach the new minimum salaries, school districts would be required to increase teacher pay by approximately $63.1 million per year. This degree of salary increase would affect the amount of the state contributions to the Teacher Retirement System. At the current contribution rate of 6.5%, the cost to the state of the minimum salary changes would likely be about $4.1 million per year. Local Government Impact Local school districts would experience an estimated annual cost of $63.1 million per year. Source Agencies: LBB Staff: JK, CT, RN