LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 30, 2001 TO: Honorable Paul Sadler, Chair, House Committee on Public Education FROM: John Keel, Director, Legislative Budget Board IN RE: HB1438 by Olivo (Relating to minimum salaries for interpreters employed in public schools to provide interpreting services to students who are deaf or hard of hearing.), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB1438, Committee Report 1st House, Substituted: negative impact * * of $(1,430,000) 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 $(715,000) * * 2003 (715,000) * * 2004 (40,500) * * 2005 (40,500) * * 2006 (40,500) * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Savings/(Cost) from * * General Revenue Fund * * 0001 * * 2002 $(715,000) * * 2003 (715,000) * * 2004 (40,500) * * 2005 (40,500) * * 2006 (40,500) * ***************************************************** Fiscal Analysis The bill would create a minimum salary for interpreters employed by school districts to provide services to students who are deaf or hard of hearing. The minimum annual salary for a 10-month contract would range from $13,000 for an interpreter with no certification to $23,000 for an interpreter with Level V certification. The bill would require that interpreters receive a proportionate raise in minimum salary each time the minimum salary requirements in Section 21.402 Education Code are increased. The bill would provide for two years of state transition aid to allow districts to meet the minimum salary requirements for interpreters. Methodology The proposed language would require the state to provide transition assistance to implement the proposed minimum salary structure for interpreters for fiscal years 2002 and 2003. Following fiscal year 2003, the proposed minimum salary structure for interpreters would have no effect on state aid. To assess the impact of the schedule on school personnel, a survey of regional day school for the deaf programs was conducted by the Texas Education Agency. Based on the survey results, it appears that about 543 interpreters are currently employed by school districts in the Regional Day Schools for the Deaf. Based on the reported pay of these individuals, the minimum salary structure proposed by this bill would increase salary costs by about $675,000 annually. As a result of increases in school district employee salaries, the state's contributions to the Teacher Retirement System would increase approximately $40,500 each year. Local Government Impact School districts would be required to pay interpreters according to the minimum salary structure provided by this bill. The bill as substituted would provide the basis for an appropriation of transition aid to offset increased local salary costs for school years 2001-2002 and 2002-2003. Beginning in school year 2003-2004, the transition aid would no longer be provided and the cost would shift to being a local school district cost. Source Agencies: 701 Texas Education Agency LBB Staff: JK, CT, PF, RN