LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
February 5, 2001
TO: Honorable Irma Rangel, Chair, House Committee on Higher
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB112 by Rangel (Relating to curriculum requirements for
admission to general academic teaching institutions and
for high school graduation.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB112, As Introduced: negative impact of $(12,425,815) through *
* the biennium ending August 31, 2003. *
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General Revenue-Related Funds, Five-Year Impact:
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* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(2,000,000) *
* 2003 (10,425,815) *
* 2004 (12,261,267) *
* 2005 (11,263,352) *
* 2006 (5,184,467) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable *
* Year Savings/(Cost) from Savings/(Cost) from Savings/(Cost) from *
* State Textbook Fund General Revenue Fund General Revenue Fund *
* 0003 0001 0001 *
* 2002 $0 $(2,000,000) $0 *
* 2003 (8,425,815) (2,000,000) 0 *
* 2004 (10,261,267) (2,000,000) 0 *
* 2005 (9,263,352) (2,000,000) 0 *
* 2006 (3,184,467) (2,000,000) 0 *
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Fiscal Analysis
The bill requires general academic teaching institutions to only admit
first-time freshmen students, (not eligible for automatic admission under
other provisions), who have either completed the recommended or advanced
high school curriculum or who have completed 30 semester credit hours at
a junior college.
The bill requires students to complete the recommended or advanced high
school program to receive a high school diploma, unless the student, the
student's parent, a school counselor and a school administrator have
agreed that the student should not complete the program
Methodology
This analysis presumes that enrollment in general academic teaching
institutions would decrease as a result of the additional requirements
and that enrollment at junior colleges would increase. Since General
Revenue appropriations for undergraduate enrollment at general academic
teaching institutions is similar to junior colleges, the State would not
incur additional General Revenue costs if overall enrollment for both
general academic teaching institutions and junior college remains level.
Any redistribution of funds between general academic institutions and
junior colleges or increase in total General Revenue costs would not
occur until Fiscal Year 2008, because the requirements would not take
effect until Fall 2006 or Fiscal Year 2007.
It is also assumed the additional admission requirements would reduce the
need and costs for developmental education at general academic teaching
institutions. However, no savings would be realized until Fiscal Year
2008.
Based on the report "Implementing the Recommended High School Program as
the Minimum Graduation Requirement" (jointly prepared by the Texas
Education Agency and State Board for Educator Certification), the
estimated number of additional students served in the required courses at
full implementation would be 519,000. If each additional student served
needed a textbook, the cost of the period of implementation would
approach $31 million. The cost is distributed across the implementation
period based on an analysis of grade level at which students are
currently taking these courses. Over time, the cost for textbook
materials used in elective courses would decline, once the recommended
program is fully implemented.
Additionally, school districts would need assistance to expand the
capacity of provide the recommended high school program curriculum for
all students beginning with the 9th grade in fiscal year 2003. The Texas
Education Agency has estimated a $2 million cost each year ($100,000 to
each Regional Education Service Center) to assist school districts in
this effort.
Local Government Impact
Junior colleges may realize increased costs related to enrollment costs
beginning in Fiscal Year 2008.
Assuming school districts reallocated all teachers currently teaching
non-required courses to courses under the recommended program,
approximately 3,959 additional teachers would be needed statewide. (If
none of the existing teachers were reallocated, approximately 4,929
additional teachers would be needed statewide.) The local costs of
salaries and benefits for 3,959 additional teachers would be
approximately $140 million annually. Additional administrative costs
related to personnel would be incurred.
Districts would incur additional facilities needs related to additional
staff and courses. The average cost per classroom is assumed to range
from $120,000 to $150,000 based on $100 per square foot construction
costs and average size of 1,200 square feet. Classroom equipment costs
would vary with the highest costs for science labs. Assuming a 100%
reallocation of available classrooms, new classroom costs would range
from $400 to $500 million annually.
Source Agencies: 781 Texas Higher Education Coordinating Board, 701
Texas Education Agency
LBB Staff: JK, CT, DB, HM