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