LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 17, 2001
TO: Honorable Paul Sadler, Chair, House Committee on Public
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB420 by Wise (Relating to standards that must be met by
school district prekindergarten programs.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB420, As Introduced: negative impact of $(2,087,404) 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. *
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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 $(659,023) *
* 2003 (1,428,381) *
* 2004 (1,327,545) *
* 2005 (1,323,954) *
* 2006 (1,378,792) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Revenue Probable Change in Number of *
* Year Gain/(Loss) from Savings/(Cost) from State Employees from *
* General Revenue Fund General Revenue Fund FY 2000 *
* 0001 0001 *
* 2002 $335,573 $(994,596) 21.0 *
* 2003 259,247 (1,687,628) 34.0 *
* 2004 234,874 (1,562,419) 35.0 *
* 2005 268,640 (1,592,594) 36.0 *
* 2006 243,977 (1,622,769) 36.0 *
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Fiscal Analysis
The bill requires school district pre-kindergarten programs to comply
with applicable child-care licensing standards adopted by the Department
of Protective and Regulatory Services (PRS) under Section 42.042 of the
Human Resources Code.
Methodology
This estimate assumes an effective date of September 1, 2001 with PRS
licensing all school district pre-kindergarten programs by August 2002.
The estimate makes the following assumptions:
(1) PRS would license school district pre-kindergarten programs as day
care centers;
(2) School districts would pay day care licensing fees that would be
deposited in the General Revenue Fund as required by Chapter 42 of the
Human Resources Code;
(3) The number of school district pre-kindergarten programs subject to
licensure would be 2,462 for the 2001-02 school year with a increase of
two percent per year through fiscal year 2006;
(4) The licensed capacity for the school district pre-kindergarten
programs would be 130,691 for the 2001-02 school year with an annual two
percent increase through fiscal year 2006;.
(5) The number of teachers subject to background checks would be 14,521
for the 2001-02 school year with an annual two percent increase through
fiscal year 2006;
(6) The number of hours that each day care licensing worker would devote
to case-related work each month (96.12) is based on a workload model
provided by PRS.
(7) The number of hours of case-related work required for various
licensure activities is based on a 1998 time study provided by PRS (i.e.,
4.87 hours to process a license application, 4.58 hours to investigate a
complaint, 2.67 hours to inspect a facility and 0.43 hours for ongoing
license activities).
(8) The annual number of inspection visits per licensed school district
pre-kindergarten program would be 2.8 and the annual number of complaint
investigations would be 1.0 (data provided by PRS).
(9) The ratio of day care licensing workers to supervisors (9:1) and day
care licensing workers to clerical support (6:1) is based a staffing
model provided by PRS.
(10) The method-of-finance would be 100% General Revenue. Federal Child
Care and Development Fund (CCDF) block grant revenues could be used in
lieu of General Revenue Funds, if available.
Local Government Impact
Campuses would likely incur expenses as a result of meeting the DPRS
licensing standards. Child-care licensing standards have both lower
student-teacher ratios and higher space per student requirements. TEA
estimates that meeting the lower student-teacher ratios will cost local
districts $13 million.
Source Agencies: 530 Department of Protective and Regulatory
Services, 701 Texas Education Agency
LBB Staff: JK, CT, UP, NM