LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 9, 2001
  
  
          TO:  Honorable Paul Sadler, Chair, House Committee on Public
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB208  by Longoria (Relating to counseling for parents of
               certain public school students who are at risk of
               dropping out of school; providing penalties.), As
               Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB208, As Introduced:  negative impact of $(9,200,000) through the    *
*  biennium ending August 31, 2003.                                      *
*                                                                        *
*  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                *
          *       2002                         $(4,600,000)  *
          *       2003                          (4,600,000)  *
          *       2004                          (4,600,000)  *
          *       2005                          (4,600,000)  *
          *       2006                          (4,600,000)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2002                             $(4,600,000) *
         *      2003                              (4,600,000) *
         *      2004                              (4,600,000) *
         *      2005                              (4,600,000) *
         *      2006                              (4,600,000) *
         *****************************************************
  
Fiscal Analysis
  
The bill institutes home visits for students that are at risk of dropping
out of school.  When appropriate, the district would require parents to
attend counseling programs to assist in the improvement of the home
environment.  An appeal process would also be instituted for parents
aggrieved by action to local Boards of Trustees.

The Texas Education Agency estimates that school districts would need to
hire an additional 1,515 staff to provide the home visits required by
the bill.  The result would be an increase in the statewide public
school payroll, which would raise the level of state contributions to
the Teacher Retirement System.
  
  
Methodology
  
An increase in public school payroll of approximately $70.9 million per
year would result from school districts hiring additional staff to
provide the home visits required by the bill.  The Texas Education agency
arrived at this figure by dividing the estimated number of at-risk
children (1,090,000) by the number of home visits one staff person could
make in one day (4), by the number of school days in a year (180).  That
calculation indicates that 1,515 additional staff would need to be hired.
Assuming an average salary of $46,800, and multiplied by the number of
new employees, produces a payroll estimate of $70.9 million.

Based on the current retirement plus insurance contribution rate of 6.5
percent, this results in an annual cost to the state of $4.6 million
associated with Teacher Retirement System contributions.
  
  
Local Government Impact
  
Local school districts would be required to evaluate all students in
pre-kindergarten through eighth grade to determine if they are at-risk of
dropping out of school.  The district would provide a home visit for
every at-risk student by a counselor or social worker.  When appropriate,
the superintendent of the school district would require at-risk
student's parents to attend parenting classes.  If parents knowingly
refuse to attend assigned classes, parents would face misdemeanor
offenses.  Local boards of trustees would hear appeals of parents
required to attend parenting classes.

The cost to local school districts for base salaries of counselors and
social workers needed to conduct home visits would be $70,893,266
annually.  Travel and administrative costs to conduct home visits are
estimated to be an additional $6.1 million annually.

Other administrative costs for districts would include monitoring
parental appearances at classes, administering appeal hearings,
developing parenting class contacts, and coordinating with local
authorities on misdemeanor offenses of parents.
  
  
Source Agencies:   701   Texas Education Agency
LBB Staff:         JK, CT, PF, RN