Austin, Texas
                    FISCAL NOTE, 77th Regular Session
                              April 6, 2001
          TO:  Honorable Paul Sadler, Chair, House Committee on Public
        FROM:  John Keel, Director, Legislative Budget Board
       IN RE:  HB1143  by Grusendorf (Relating to public school
               teachers.), Committee Report 1st House, Substituted
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB1143, Committee Report 1st House, Substituted:  negative impact     *
*  of $(62,232,914) 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                        $(32,065,957)  *
          *       2003                         (30,166,957)  *
          *       2004                         (31,309,240)  *
          *       2005                         (32,652,806)  *
          *       2006                         (34,252,806)  *
All Funds, Five-Year Impact:
*Fiscal      Probable        Probable        Probable       Change in     *
* Year    Savings/(Cost)     Revenue      Savings/(Cost) Number of State  *
*          from General    Gain/(Loss)         from       Employees from  *
*          Revenue Fund        from       Certification      FY 2001      *
*              0001       Certification   and Assessment                  *
*                         and Assessment  Fees (General                   *
*                         Fees (General   Revenue Fund)                   *
*                         Revenue Fund)        0751                       *
*                              0751                                       *
*  2002     $(32,150,000)        $209,387      $(125,344)             7.5 *
*  2003      (30,450,000)         388,387       (105,344)             7.5 *
*  2004      (31,750,000)         546,104       (105,344)             7.5 *
*  2005      (33,250,000)         702,538       (105,344)             7.5 *
*  2006      (34,850,000)         702,538       (105,344)             7.5 *
Technology Impact
The bill  requires the State Board of Educator Certification (SBEC) to
adjust programming in the agency's Integrated Technology System for a
new method of processing certificates for educators from other states.
This programming would cost about $15,000 in contracted services during
fiscal year 2002.
Fiscal Analysis
The bill modifies statutes regarding public school teaching.
Specifically, it creates incentive programs targeted at addressing the
quality of teaching and academic achievement in public schools. It would
authorize the commissioner of education to make grants to school
districts for each new teacher hired who is newly certified by an
alternative certification program or holds a district teaching permit.
It also authorizes grants for each new teacher hired from a traditional
certification program or from out-of-state programs.  The funds would be
used for mentor or induction programs, longer contracts for new teachers,
signing bonuses, or higher education expenses. Also, it would provide
for a $3,000 bonus for experienced teachers that agree to serve at
low-performing campuses for three years.

The bill authorizes SBEC to certify teachers in a subject area with only
passage of the examination and a bachelor's degree in the relevant
field.  It would allow educators certified by another state to obtain
comparable Texas certification without an examination, if their state's
certification exams are similar to and at least as rigorous as those
given in this state.
Sections 1 and 4 of the bill include language to require the commissioner
of education to make grants "From amounts appropriated" for those
purposes. This fiscal note provides an estimate of what that
appropriation would need to be.

Section 1 of the bill would authorize a new grant program related to
newly-hired teachers.  This grant program would provide $3,000 to
districts for each new teacher hired from an alternative certification
program or who is teaching on a district permit, and
traditionally-prepared educators would be eligible for the $1,000 grant.
In 1999-2000, an estimated 2,900 new teachers were employed from
alternative certification programs or with district teaching permits.  An
additional 17,300 teachers entered the profession from traditional
programs or other sources.  The estimated cost of the grants would range
from $27,335,000 in fiscal year 2002 to $33,200,000 in fiscal year 2006.

Section 2 of the bill would allow individuals having college degrees to
become certified teachers without participating in an educator
preparation program.  SBEC estimates the additional number of individuals
certified as a result of Section 3 as 3,000 in fiscal year 2002, 4,000
in fiscal year 2003, 5,000 in fiscal year 2004, and 6,000 in each year of
fiscal years 2005 and 2006. These additional candidates for
certification  increase the number of exams given and certificates
issued, providing additional fee revenue.  Because the bill requires the
degree to be in an academic major or discipline related to at least one
area of the public school curriculum, SBEC must review college
transcripts and other documentation to determine eligibility.  This
review will require an increase in agency staff (5.5) and expenditures
(ranging from $440,000 to $605,000 each year), which would be paid from
certification and exam fee revenue. There would be net increase in
revenue of $215,820 in fiscal year 2002 and $394,820 in fiscal year 2003,
as reflected in the third column of the fiscal impact table above.

The additional costs to SBEC associated with certifying out-of-state
educators are estimated to be $125,344 in fiscal year 2002 and $105,433
in each year thereafter. There would an overall revenue loss to
certification and assessment fee revenue estimated be about $6,000 a

Section 4 would provide for a $3,000 one-time bonus for experienced
teachers agreeing to serve at low-performing campuses for three years.
In the current year, there are 146 low-performing campuses, but that
number is expected to rise over time with changes in the state's testing
program.  In a recent year, the average number of teachers per campus was
38.  If 20 percent of the positions at 200 low-performing campuses are
filled by experienced teachers that receive the award, then it is
estimated that 1,520 teachers would receive awards totaling $4,560,000.
After a high initial cost, the actual annual cash outlays should decline
somewhat, since there has typically not been 100 percent turnover in
those campuses rated low-performing from year to year.  For the purposes
of this estimate, it is assumed that 500 new teachers would qualify for
the bonus in any given year.  This program requires monitoring of
employment over a three year time period.  This monitoring, the Texas
Education Agency (TEA) estimates would require one additional
professional employee and one administrative support employee at a
combined annual cost of $88,969.
Local Government Impact
School districts and their teachers would receive state grants associated
with the teacher mentor and experienced teacher programs.  These two new
programs could allocate as much as $30 million per year to qualifying
school districts.
Source Agencies:   701   Texas Education Agency, 705   State Board for
                   Educator Certification
LBB Staff:         JK, CT, PF, RN