LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 6, 2001
TO: Honorable Irma Rangel, Chair, House Committee on Higher
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1998 by Delisi (Relating to financial assistance for
certain persons seeking certification as public school
teachers, including revisions to the Teach for Texas
conditional tuition grant program and a financial
assistance program for persons in an alternative
educator certification program.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1998, As Introduced: negative impact of $(17,556,497) 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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The bill separates the Teach for Texas Grant Program from the TEXAS Grant
Program in statute.
The bill revise the Teach for Texas Grant Program administered by the
Higher Education Coordinating Board (THECB). It would provide tuition
assistance to those pursuing certification as classroom teachers by
providing tuition grants or stipends on the condition that the person
serve as a classroom teacher in a state public school. While recipients
would no longer need to teach in areas with a critical shortage of
teachers, priority would be given to those who do so. No longer would a
Teach for Texas Grant be available only to those who receive a TEXAS
Grant, and a five-year commitment to teach would no longer be necessary.
Instead, persons would agree to teach for one year for each semester or
summer term for which the person receives the grant. The bill would also
limit the amount of time persons may receive the grants to three
academic years or the equivalent. The grant would be set at twice the
average amount of tuition and fees paid per semester by residents
enrolled full-time in baccalaureate degree programs, and the grant would
become a loan if persons do not make adequate progress in their educator
certification program or degree plan.
The bill would also create the Teach for Texas Alternative Certification
Assistance Program to be administered by THECB to provide support for
individuals seeking to become certified educators through alternative
certification programs. This program would award stipends to those with
baccalaureate degrees who enroll in alternative educator certification
programs and seek educator certification in teaching fields with a
critical shortage of teachers. Recipients would need to agree to teach
for four years in a public school in one of these teaching fields and
demonstrate financial need. Alternatively, a person could teach for four
years in a public school not so designated. The amount of the stipend
would not exceed $5,000, or another amount set by the legislature. The
grant would become a loan if persons do not make adequate progress in
their alternative educator certification program.
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(9,525,699) *
* 2003 (8,030,798) *
* 2004 (8,030,798) *
* 2005 (8,030,798) *
* 2006 (8,030,798) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Change in Number of State *
* Year General Revenue Fund Employees from FY 2001 *
* 0001 *
* 2002 $(9,525,699) 8.0 *
* 2003 (8,030,798) 8.0 *
* 2004 (8,030,798) 8.0 *
* 2005 (8,030,798) 8.0 *
* 2006 (8,030,798) 8.0 *
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Technology Impact
THECB would need to make certain changes to its mainframe computer system
to administer the expanded Teach for Texas Program, and the agency would
have to design a new computer system for the Teach for Texas Alternative
Certification Assistance Program. Changes to telecommunications and
imaging systems would also be required for both programs. Total
technology-related costs are estimated to be $1.4 million in General
Revenue in fiscal year 2002.
Fiscal Analysis
The fiscal impact of the bill is estimated to be $9.5 million in fiscal
year 2002 and $8.0 million in fiscal year 2003 and in subsequent years.
It is estimated that $2.5 million per year in additional funding would be
required for the Teach for Texas Grant Program. In addition, the first
year would require mainframe changes, equipment costs, upgrading current
positions, and the addition of three full-time employees at THECB.
Expenses for travel, salaries, and minimal operating costs would be
incurred in each year.
It is assumed that $5 million per year would be required to fund the
Teach for Texas Alternative Certification Assistance Program. In
addition, the first year would require a new computer system, equipment
costs, and the addition of five full-time employees at THECB. Expenses
for travel, salaries, and operating costs would be incurred in each
year.
Methodology
The Teach for Texas Alternative Certification Assistance Program
estimated funding needs are based on information provided by the State
Board for Educator Certification (SBEC) on the statewide average cost for
alternative education. It is estimated that funding of $5 million per
year would provide the state with 1,000 new teachers per year, assuming a
stipend of $5,000 per year.
This estimate includes publication costs for the Teach for Texas
Alternative Certification Assistance Program, which THECB would incur
through cooperation with SBEC to publicize the program.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 701 Texas Education Agency, 705 State Board for
Educator Certification, 781 Texas Higher Education
Coordinating Board
LBB Staff: JK, CT, DB, KC