LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 10, 2001 TO: Honorable Teel Bivins, Chair, Senate Committee on Education FROM: John Keel, Director, Legislative Budget Board IN RE: HB1310 by Salinas (Relating to the Texas Teachers' Excellence Program.), As Engrossed ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB1310, As Engrossed: negative impact of $(2,062,524) 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 $(906,412) * * 2003 (1,156,112) * * 2004 (676,112) * * 2005 (796,112) * * 2006 (916,112) * **************************************************** 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 $(906,412) 0.5 * * 2003 (1,156,112) 0.5 * * 2004 (676,112) 0.5 * * 2005 (796,112) 0.5 * * 2006 (916,112) 0.5 * *************************************************************************** Technology Impact The State Board for Educator Certification would implement a web-based tracking system of national-board certification applicants in order to administer certain provisions of the bill. Fiscal Analysis The bill creates the Texas Teachers Excellence Program (TTEP) which would provide financial awards for teachers who receive and maintain certification from the National Board for Professional Teaching Standards (NBPTS). The bill directs the State Board of Educator Certification (SBEC) to establish the program and to provide classroom teachers with financial assistance to meet certification requirements, up to a limit of 100 teachers each year. The bill would require school districts to pay stipends beyond the minimum salary level. The stipends levels would be $4,000 annually to each classroom teacher certified by the National Board for Professional Teaching Standards, and an additional stipend of $2,000 to each teacher who works at least 40 hours during a school year as a mentor providing assistance to other public school teachers attempting to earn certification. The program, including salary stipends, be funded with state appropriations to the State Board of Educator Certification, federal grant funds provided to SBEC, or from gifts, grants, and donations received for that purpose. The estimated costs are expected to increase over time with more certifications by the national board. Teachers earning national certification during a school year would become eligible for the stipends in the following school year. Teachers holding national certification before the effective date of the act would not be entitled to receive stipends for school years occurring before the effective date of the act. The bill as engrossed would require the Commissioner of Education to develop an assessment system for evaluating teachers holding national certification. The system would be used on a three-year cycle to determine if a nationally certified teacher should continue to receive the stipend provided through this bill. Methodology As of December 2000, the NBPTS had certified a total of 36 Texas teachers, with approximately half (19) certified in the 1999-2000 school year. Costs to provide the maximum stipend for all teachers currently holding certification would be $216,000, based on an annual stipend of $6,000. Presuming an increase of 20 teachers per year, and that all previously certified teacher maintain their status, the cost of the award would increase by $120,000 per year. From state funds, SBEC could provide each program participant a scholarship of up to $1,500, or $150,000 per year, to defray other expenses related to applying for national-board certification. SBEC could enhance the scholarship for each participant by $1,000 from federal funds granted for that purpose. The SBEC would be responsible for administering the Texas Teacher's Excellence Program and assisting the selection committee. Agency operating expenses are estimated to be $90,412 in 2002, $70,112 in 2003 and about the same amount in each year thereafter. As engrossed, the bill requires the commissioner of education to develop an assessment system for evaluating teachers holding national certification who receive stipends under this bill. The bill appears to require the evaluation to be conducted for each affected teacher on a three-year recurring cycle. Based on the costs incurred in developing other teacher assessment and evaluation systems, it is estimated that the cost of developing a system containing the criteria described in the bill would be approximately $1.2 million over the next biennium (assumed to be a non-recurring cost for this fiscal note). Local Government Impact Local school districts would be required to pay stipends beyond the minimum salary level. The stipends levels would be $4,000 annually to each classroom teacher who is certified by the National Board for Professional Teaching Standards, and an additional stipend of $2,000 to each teacher who works at least 40 hours during a school year as a mentor providing assistance to other public school teachers attempting to earn certification. School districts would be required to evaluate each teacher receiving a stipend at least every three years to determine if the stipend should be renewed. Some school districts are currently providing stipends to nationally certified teachers. The bill would presumably alleviate some of that burden. The bill otherwise should be relatively cost neutral to districts, since the revenues from the state should cover the expense of the stipends. One element of cost to districts that is not specifically offset by state funding is the extra leave time awarded in 21.605(b). Three days of extra leave for application preparation will necessitate three days of substitute teacher pay. With up to 500 teachers eligible to be in the program, there could be a need to provide up to 1,500 days of substitute teacher service each year. At a presumed rate of $150 per day, there could be a cost of about $225,000 to school districts that would not be funded directly by the state. Districts would also incur costs associated with training staff to serve as evaluators. Source Agencies: 701 Texas Education Agency LBB Staff: JK, CT, RN