Austin, Texas
                    FISCAL NOTE, 77th Regular Session
                               May 11, 2001
          TO:  Honorable Teel Bivins, Chair, Senate Committee on
        FROM:  John Keel, Director, Legislative Budget Board
       IN RE:  HB704  by Delisi (Relating to the Careers to Classrooms
               Program.), As Engrossed
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB704, As Engrossed:  negative impact of $(3,278,842) through the     *
*  biennium ending August 31, 2003.                                      *
General Revenue-Related Funds, Five-Year Impact:
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                         $(1,662,921)  *
          *       2003                          (1,615,921)  *
          *       2004                          (1,615,921)  *
          *       2005                          (1,615,921)  *
          *       2006                          (1,615,921)  *
All Funds, Five-Year Impact:
*Fiscal    Probable Savings/(Cost) from     Change in Number of State     *
* Year         General Revenue Fund           Employees from FY 2001      *
*                      0001                                               *
*  2002                      $(1,662,921)                             2.0 *
*  2003                       (1,615,921)                             2.0 *
*  2004                       (1,615,921)                             2.0 *
*  2005                       (1,615,921)                             2.0 *
*  2006                       (1,615,921)                             2.0 *
Fiscal Analysis
The bill establishes the Careers to Classrooms program.  This program
would provide individuals with a baccalaureate or advanced degree a
stipend of $5,000 to pursue certification as a classroom teacher.

The legislation would take effect immediately, if it received sufficient

This estimate is primarily based on analyses made by the Texas Education
Agency (TEA).

The bill would create within TEA a program to process applications,
select participants, and award stipends.  The program would focus on
recruiting individuals with backgrounds in science, math, computer
sciences, engineering, or who have been educational aides.

A similar function, absent the stipend payment, has been in operation at
the Regional Education Service Center (RESC) in Austin for several years.
During that time, over 1,000 individuals were identified by the RESC
staff as having made the transition from other occupations to classroom
teacher.  While the availability of a stipend may induce more individuals
to make the transition, this estimate assumes an annual level of 300
individuals qualifying and applying for the support.

TEA would need two additional staff to process applications and to track
individuals through the certification process.  If individuals choose not
to complete the certification process and work in public schools for at
least five years, a portion of the stipend would be due as a
reimbursement.  The added TEA staff would also need to process such
reimbursements and track employment of individuals for at least five

The estimated number of stipends would not effect a complete modification
of TEA's data processing system.   Appropriate software can be acquired
and modified for an investment of $30,000 in the initial year of
operation.  There would be continuing, annual hardware up-grade costs of
$10,000 per year
Local Government Impact
No significant fiscal implication to units of local government is
Source Agencies:   701   Texas Education Agency, 705   State Board for
                   Educator Certification
LBB Staff:         JK, CT