LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 12, 2001
TO: Honorable Paul Sadler, Chair, House Committee on Public
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1310 by Salinas (Relating to the Texas Teachers'
Excellence Program.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1310, As Introduced: negative impact of $(2,475,504) 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. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(433,752) *
* 2003 (2,041,752) *
* 2004 (5,236,752) *
* 2005 (8,431,752) *
* 2006 (11,626,752) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Change in Number of State *
* Year General Revenue Fund Employees from FY 2001 *
* 0001 *
* 2002 $(433,752) 1.0 *
* 2003 (2,041,752) 1.0 *
* 2004 (5,236,752) 1.0 *
* 2005 (8,431,752) 1.0 *
* 2006 (11,626,752) 1.0 *
***************************************************************************
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 teachers with financial assistance
and training to meet certification requirements, up to a limit of 500
teachers each year.
A committee composed of 15 members would review program applicants, with
five each appointed by the State Board of Educator Certification, the
State Board of Education and the Commissioner of Education. The
committee would take office in February 2002.
The bill 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 50 hours during a school year as a mentor providing
assistance to other public school teachers in the process of becoming
certified.
Methodology
The cost estimate associated with the $6,000 stipend ($4,000 for national
certification and $2,000 for mentoring assumes a time lag resulting from
program start-up and exam preparation. This means relatively few
teachers will be eligible for the stipend in fiscal years 2002 and 2003
(about 56 in 2002 and 76 in 2003). By 2004, an estimated 500 potential
teachers will apply for and receive national certification, as a result
of the legislation. Because the bill authorizes a state appropriation to
reimburse school district stipend costs, it is assumed that all stipends
will be funded by state general revenue. Stipend costs are estimated to
range from $336,000 in fiscal year 2002 to $9.5 million in fiscal year
2006. Also, state contributions to Teacher Retirement System would
increase, because stipends would be considered compensation for the
purpose of state and member contributions to the retirement and retiree
group insurance funds. These costs range from $22,000 in fiscal year
2002 to $600,000 in fiscal year 2006.
The bill requires SBEC to pay the national-board certification fee and
provide to each selected program participant a $500 scholarship. The
estimate assumes 500 candidates would apply for the TTEP during fiscal
year 2002, with funding beginning in 2003. During the first award year,
fiscal year 2003, SBEC's cost for a cohort of 500 candidates would
include the $2,500 national-board application fee and $500 scholarship,
for an annual cost in fiscal year 2003 and thereafter of $1.5 million.
SBEC would need one additional employee to implement and to maintain the
program. If the review committee meets in Austin twice the first year
and once a year thereafter, reimbursable expenses and related agency
costs (such as meeting room rental and copying applications for all
members) would be $5,000 per meeting. These costs are projected at
$60,912 in fiscal year 2002 and $56,000 per year thereafter.
SBEC's strategy for providing information to teachers about the TTEP
would include web-based and print-based materials to be distributed to
school districts and teachers. This strategy would cost $14,500 the
first year, $14,000 the second year, and $14,075 thereafter.
The bill requires SBEC provide or authorize training to help teachers
obtain national board certification. The cost estimate further assumes
that SBEC would provide training for achieving national-board
certification at a cost of $34,200 the first year (including the
development/purchase of training program materials) and $33,600 per year
thereafter.
Local Government Impact
Some school districts are currently providing stipends to nationally
certified teachers. This bill would presumably alleviate some of that
burden. State revenue provided by the bill should cover the expense of
these stipends.
One element of local cost not offset by state funding would be the extra
leave time awarded local district teachers. Three days of extra leave
for application preparation will mean 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 not be funded by the state.
Source Agencies: 701 Texas Education Agency, 705 State Board for
Educator Certification
LBB Staff: JK, CT, RN