Austin, Texas
                    FISCAL NOTE, 77th Regular Session
                              March 12, 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.), As Introduced
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB1143, As Introduced:  negative impact of $(61,689,360) 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                        $(31,784,180)  *
          *       2003                         (29,905,180)  *
          *       2004                         (31,147,463)  *
          *       2005                         (32,491,029)  *
          *       2006                         (34,091,029)  *
All Funds, Five-Year Impact:
*Fiscal        Probable         Probable Revenue    Change in Number of  *
* Year    Savings/(Cost) from   Gain/(Loss) from   State Employees from  *
*        General Revenue Fund   Certification and         FY 2001        *
*                0001            Assessment Fees                         *
*                               (General Revenue                         *
*                                     Fund)                              *
*                                     0751                               *
*  2002          $(32,000,000)             $215,820                  2.0 *
*  2003           (30,300,000)              394,820                  2.0 *
*  2004           (31,700,000)              552,537                  2.0 *
*  2005           (33,200,000)              708,971                  2.0 *
*  2006           (34,800,000)              708,971                  2.0 *
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 would authorize the State Board for Educator Certification
(SBEC) to certify teachers in a subject area with only passage of the
examination and a bachelor's degree in the relevant field.

The bill removes provisions concerning parental notification of
inappropriately certified staff and substitutes a general notification
requirement for all teachers.
Section 1 of the bill authorizes 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 allows 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 and expenditures, 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.

Section 4 provides 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% 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% 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 $100 million per year to qualifying
school districts.

Districts would be required to provide teacher certification information
to all parents.  TEA estimates these parent notification requirements
would cost school districts statewide approximately $360,000 annually.
Source Agencies:   701   Texas Education Agency, 705   State Board for
                   Educator Certification
LBB Staff:         JK, CT, RN