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: HB2174 by Hochberg (Relating to allowing the State Board
of Educator Certification to recognize examinations by
other states.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2174, As Introduced: negative impact of $(836,268) 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 $(443,149) *
* 2003 (393,119) *
* 2004 (293,119) *
* 2005 (293,119) *
* 2006 (293,119) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Change in *
* Year Revenue Revenue Savings/(Cost) Number of State *
* Gain/(Loss) Gain/(Loss) from Employees from *
* from from Certification FY 2001 *
* Certification Certification and Assessment *
* and Assessment and Assessment Fees (General *
* Fees (General Fees (General Revenue Fund) *
* Revenue Fund) Revenue Fund) 0751 *
* 0751 0751 *
* 2002 $(177,439) $39,664 $(305,374) 3.0 *
* 2003 (177,439) 39,664 (255,344) 2.0 *
* 2004 (177,439) 39,664 (155,344) 2.0 *
* 2005 (177,439) 39,664 (155,344) 2.0 *
* 2006 (177,439) 39,664 (155,344) 2.0 *
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Fiscal Analysis
The bill authorizes the State Board for Education Certification (SBEC) to
certify an educator who has passed a certification examination similar
to that of Texas in the state in which the educator is certified to
teach.
Methodology
This fiscal note revision differs from the original fiscal note by
$188,625 per year because a) the revised note includes a more accurate
estimate of the percent of out-of-state educators who are likely to pass
Texas' educator examination, and b) the revised note takes into account
reduced costs associated with processing fewer examinations and
certificates.
To evaluate other states' exams, SBEC would need to undertake a
comparability study between the ExCET exams and credentialing exams used
in other states. 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. This study
would evaluate out-of-state exams in terms of match to the Texas
Essential Knowledge and Skills (as appropriate) to the new standards for
Texas educators, to the ExCET test frameworks, to the level of
difficulty of the test items, to the degree of rigor of the passing
standards, and to the technical properties of the tests. Texas and other
states' changes to their certification tests would require continued
monitoring and evaluation.
The bill would likely increase the number of educators from other states
who apply for a Texas certificate by 20 percent or almost 1,000 persons.
SBEC currently receives 5,000 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 $155,000 in 2002 and
$105,000 thereafter.
SBEC estimates that the revised testing requirement provided by the bill
would attract more educators to Texas from other states. An additional
20 percent (of 4,000) or 800 qualified educators from other states is
estimated to receive Texas certification each year. SBEC would realize
about $40,000 per year in certification fee revenue, net of increased
costs associated with processing the additional certificates.
Under the bill, SBEC would lose certification fee revenue by not issuing
as many one-year certificates at $50 each. Educators from other states
who did not pass a similar credentialing test would still need the
one-year certificate if they wished to be employed in Texas public
schools while completing the Texas exam. But without the results of the
comparability study, it is unknown with any certainty how many educators
from other states could not proceed directly to standard certification.
SBEC estimates that 77 percent of test takers from other states pass
Texas certification exams, the cost estimate assumes a proportionate
share of the now 4,000 one-year certificates (3,080) certificates would
no longer be issued annually. The revenue loss from the non-issuance of
one-year certificates, net of costs related to permit processing, would
be $75,706.
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 $101,732
per year in assessment fee revenue on 77 percent or 6,300 of the 9,000
exams annually taken by educators from other states.
Local Government Impact
The addition of teacher coming from other states would lessen the
shortage of local school teachers. The impact of this influx would vary
depending upon the school district's geographic region and ability to
recruit.
Source Agencies: 705 State Board for Educator Certification
LBB Staff: JK, CT, PF, RN