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 ************************************************************************** * 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. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * 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) * **************************************************** All Funds, Five-Year Impact: ************************************************************************** *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 * ************************************************************************** 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