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