LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
Revision 1
March 16, 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 outside the state.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1721, As Introduced: negative impact of $(604,238) 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 Net Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(318,034) *
* 2003 (286,204) *
* 2004 (286,204) *
* 2005 (286,204) *
* 2006 (286,204) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Revenue Probable Change in Number of *
* Year Gain/(Loss) from Savings/(Cost) from State Employees from *
* Certification and Certification and FY 2001 *
* Assessment Fees Assessment Fees *
* (General Revenue (General Revenue *
* Fund) Fund) *
* 0751 0751 *
* 2002 $(180,860) $(137,174) 2.4 *
* 2003 (180,860) (105,344) 2.0 *
* 2004 (180,860) (105,344) 2.0 *
* 2005 (180,860) (105,344) 2.0 *
* 2006 (180,860) (105,344) 2.0 *
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Technology Impact
The bill would require 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.
Fiscal Analysis
The bill allows educators certified by another state to obtain comparable
Texas certification without an examination.
Methodology
This fiscal note differs from the original fiscal note by $610,900
because the revised note takes into account the reduced costs associated
with processing fewer educator examinations and certificates.
The bill could increase the annual number of educators certified by
another state receiving Texas certification by 25 percent and thereby
increase certification fee revenue proportionately. This would raise
certification revenue by $49,580 per year.
With this increase in applications, SBEC would need one additional
employee to review other states' credentials and to process certificate
issuance. Because criminal history checks must be done, the additional
number of applicants from other states would increase the number of
contested cases challenging administrative denial of the Texas
certificate based on a criminal background. SBEC would need an
additional person to review and investigate the added criminal histories
and to help prepare SBEC's defense to applicants' challenges to
certificate denial. These factors would increase agency operating costs
by $136,174 in fiscal year 2002, and $105,344 per year thereafter.
SBEC would lose revenue from the temporary credential normally issued to
educators from other states, the one-year permit. Further, examination
fee revenue would decrease, because incoming educators would no longer
have to pass a Texas certification exam. However, costs associated with
test administration and certification processing would also decline, so
the net fiscal impact related to fewer examinations given is estimated
to be $132,120 per year, and net impact for fewer one-year permits
would be $98,320 per year. After subtracting the revenue gain mentioned
above ($49,580), the overall result would be an annual revenue loss to
the Certification and Assessment account in General Revenue of $180,860.
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: 705 State Board for Educator Certification
LBB Staff: JK, CT, RN