LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 5, 2001
TO: Honorable Paul Sadler, Chair, House Committee on Public
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1721 by Martinez Fischer (Relating to certification
examinations for educators certified in other
jurisdictions.), Committee Report 1st House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1721, Committee Report 1st House, Substituted: negative impact *
* of $(543,554) 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 $(281,777) *
* 2003 (261,777) *
* 2004 (161,777) *
* 2005 (161,777) *
* 2006 (161,777) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Change in *
* Year Revenue Savings/(Cost) Savings/(Cost) Number of State *
* Gain/(Loss) from General from Employees from *
* from Revenue Fund Certification FY 2001 *
* Certification 0001 and Assessment *
* and Assessment Fees (General *
* Fees (General Revenue Fund) *
* Revenue Fund) 0751 *
* 0751 *
* 2002 $(6,433) $(150,000) $(125,344) 2.0 *
* 2003 (6,433) (150,000) (105,344) 2.0 *
* 2004 (6,433) (50,000) (105,344) 2.0 *
* 2005 (6,433) (50,000) (105,344) 2.0 *
* 2006 (6,433) (50,000) (105,344) 2.0 *
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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 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 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 $150,000 per
year for the 2002-2003 biennium, and require one additional employee; the
cost would decrease to $50,000 for subsequent years. This study would
evaluate out-of-state 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.
SBEC estimates that the revised testing requirement provided by the bill
would attract more educators to Texas from other states. The agency
would realize about $27,700 per year in certification fee revenue, net of
increased costs associated with processing the additional certificates.
Because educators certified by other states through similar credentialing
exams would no longer have to take Texas exams, SBEC would lose, net of
reduced costs associated with test administration, a total of $34,100 per
year in assessment fee revenue on 77 percent of the exams annually taken
by educators from other states. As a result, the overall revenue loss
to certification and assessment fee revenue would be about $6,000 a year.
According to the agency, its board could raise the certification fee it
charges out-of-state applicants in order the recover the cost of
implementing the provisions of this bill. In order to this, the
additional fee revenue would have to be appropriated to the agency in
such a way that the Comptroller would find that the cost of implementing
the provisions of this bill are completely offset by additional revenue
charged to out-of-state applicants for certification.
Local Government Impact
The additional former out-of-state 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