LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session Revision 1 May 23, 2001 TO: Honorable Teel Bivins, Chair, Senate Committee on Education FROM: John Keel, Director, Legislative Budget Board IN RE: HB1721 by Martinez Fischer (Relating to certification examinations for educators certified in other jurisdictions.), As Engrossed ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB1721, As Engrossed: negative impact of $(330,688) 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. * ************************************************************************** The conference committee report for Senate Bill 1 provides a contingent revenue rider related to this bill, such that the overall fiscal impact would be neutral. General Revenue-Related Funds, Five-Year Net Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $(225,344) * * 2003 (105,344) * * 2004 (105,344) * * 2005 (105,344) * * 2006 (105,344) * **************************************************** All Funds, Five-Year Impact: ************************************************************************** *Fiscal Probable Probable Change in Number of * * Year Savings/(Cost) from Savings/(Cost) from State Employees from * * General Revenue Fund General Revenue Fund FY 2001 * * 0001 0001 * * 2002 $(100,000) $(125,344) 2.0 * * 2003 0 (105,344) 2.0 * * 2004 0 (105,344) 2.0 * * 2005 0 (105,344) 2.0 * * 2006 0 (105,344) 2.0 * ************************************************************************** Technology Impact The bill requires the State Board of Educator Certification (SBEC) to adjust programming in the agency's Integrated Technology System for a new method of processing certificates for educators from other states. This programming would cost about $15,000 in contracted services during 2002. Fiscal Analysis The bill would allow educators certified by another state or country to obtain comparable Texas certification without an examination, if their state's certification exams are similar to and at least as rigorous as those given in this state. Methodology To evaluate other states' exams, SBEC would need to undertake a comparability study analyzing the extent to which credentialing exams used in other states or countries are as rigorous as those used in this state. Based on the experience of California in comparing its credentialing exam with other states, a comprehensive study for Texas would cost $100,000 in fiscal year 2002. This study would evaluate out-of-state or foreign nation exams in terms of alignment to the standards for Texas educators, and other considerations. Texas and other states' changes to their certification tests would require ongoing monitoring and evaluation. The bill would likely increase the number of educators from other states who apply for a Texas certificate by 25 percent. SBEC currently receives 4,000 applications for review of out-of-state credentials each year. One additional person would be needed to process the increased application and review workload. This, plus the additional workload associated with denials of Texas certification, would result in higher annual agency operating costs of about $125,344 in 2002 and $105,344 thereafter. The conference committee report for Senate Bill 1 provides a contingent revenue rider related to this bill, such that the overall fiscal impact would be neutral. Local Government Impact The additional former out-of-state or foreign teachers entering the classroom could address local school district teacher shortage problems. The impact of this influx would vary depending on the school district's geographic region and ability to recruit. Source Agencies: 701 Texas Education Agency, 705 State Board for Educator Certification LBB Staff: JK, CT, PF, RN