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