LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 17, 2001
TO: Honorable Irma Rangel, Chair, House Committee on Higher
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2513 by Coleman (Relating to financial assistance for
certain persons seeking certification as public school
teachers, including revisions to the Teach for Texas
grant program.), Committee Report 1st House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2513, Committee Report 1st House, Substituted: negative impact *
* of $(21,541,244) 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 $(8,359,797) *
* 2003 (13,181,447) *
* 2004 (10,656,513) *
* 2005 (10,656,513) *
* 2006 (10,656,513) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Change in *
* Year Savings/(Cost) Revenue Savings/(Cost) Number of State *
* from General Gain/(Loss) from Employees from *
* Revenue Fund from Certification FY 2001 *
* 0001 Certification and Assessment *
* and Assessment Fees (General *
* Fees (General Revenue Fund) *
* Revenue Fund) 0751 *
* 0751 *
* 2002 $(8,179,642) $31,100 $(211,255) 6.0 *
* 2003 (13,139,642) 93,450 (135,255) 6.0 *
* 2004 (10,639,642) 93,450 (110,321) 6.0 *
* 2005 (10,639,642) 93,450 (110,321) 6.0 *
* 2006 (10,639,642) 93,450 (110,321) 6.0 *
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Fiscal Analysis
The bill separates the Teach for Texas Program from the TEXAS Grant
program and creates an alternative certification expansion and outreach
program to be administered by the State Board of Educator Certification
(SBEC).
Section 2 of the bill requires SBEC to encourage the creation and
expansion of alternative certification programs (ACP's) through the Teach
for Texas Alternative Certification Program. SBEC would accomplish this
goal by providing financial incentives to ACP's.
SBEC would provide financial incentives to post-baccalaureate teacher
certification candidates who participate in alternative certification
programs.
The bill requires SBEC to publicize the Teach for Texas ACP by working
with other state agencies such as the Texas Education Agency and the
Texas Higher Education Coordinating Board.
The bill adds specific language to allow students to receive a
conditional grant, if their institution requires a post-baccalaureate
work to obtain teacher certification. The Teach for Texas recipient who
is seeking certification can receive two times the TEXAS Grant amount
per semester for his/her teacher education studies and may not receive
an award for more than three years. Priority will be given to students
who agree to teach in subject areas or geographic regions of the state
experiencing teacher shortages. For each semester or term that a
student receives a conditional grant, he/she must agree to teach for one
year.
Methodology
SBEC estimates that it would allocate $1.5 million per year in fiscal
years 2002 and 2003 to create 20 new alternative certification programs.
For new programs, this start-up funding would be used to hire staff and
provide training materials and limited support equipment. Funding would
create about 10 new programs each year, which SBEC estimates would
produce statewide 50 new teachers each year. In addition, the agency
would spend $1 million per year in 2002 and 2003 to expand 10 existing
alternative programs each year. In expanding existing programs, state
assistance would be used primarily to add staff to handle the additional
teacher candidates. Expansion of existing programs is projected to
produce 75 new teachers each year statewide. For the biennium, it is
estimated that $2.5 million a year (General Revenue) would create new or
to expand existing teacher preparation programs.
SBEC estimates that funding of $2.5 million per year (General Revenue)
would allow 500 teacher candidates to participate in alternative
certification programs each year. This estimate assumes a financial
incentive of $5,000 per candidate per year, which is the statewide
average cost to attend such a program.
The statewide outreach program for the Teach for Texas ACP required by
the bill would cost about $110,000 for the 2002-2003 biennium (out of
certification and assessment fee revenue). SBEC would provide publicity
to make people aware of the Teach for Texas ACP, the financial incentives
available to them, and who to contact about becoming teachers in their
local areas. The funding would also provide a central contact for
information with a 1-800 number and web site
As to administrative costs, SBEC estimates of its cost to administer the
provisions of the bill to be approximately $121,000 in fiscal year 2002;
$115,000 in 2002, and $110,000 per year after fiscal year 2003 and
thereafter. The agency would need an additional two full-time employees
to guide the expansion and creation of new programs and to process and to
monitor the issuance of financial incentives to ACP's and individual
participants in the program.
As a result of new educators being certified, SBEC estimates new
certification revenue of $31,100 in fiscal year 2002 and $93,450 in
fiscal year 2003 and each fiscal year, thereafter, after subtracting out
the cost of certification processing (certification and assessment fee
revenue). These estimates are based on 1,250 new educators obtaining
one-year certificates ($50 each) in fiscal year 2002 (while they are
being trained). For fiscal year 2003, that same number (1,250) of
additional new teachers would buy one-year certificates, while the new
teachers from the prior year (2002) would purchase standard certificate
($75 each).
The Texas Higher Education Coordinating Board estimates that an
additional $11,000,000 would be required for additional conditional
grants for this biennium ($3,000,000 for fiscal year 2002 and $8,000,000
for fiscal year 2003). Administrative expenses for fiscal year 2002 will
be $179,642 and for fiscal year 2003 will be $136,642. These expenses
include salaries, computer changes, furniture, equipment and printing
and mailing of brochures. Funding would be from the General Revenue
fund. The agency has indicated it would need an additional four
full-time employees.
Local Government Impact
Efforts to increase the number of available public school teachers could
benefit local school districts.
Community colleges, local school districts, and regional education
service centers might receive a portion of the state funding being used
to expand existing and to create new alternative certification programs.
Source Agencies: 701 Texas Education Agency, 781 Texas Higher
Education Coordinating Board, 705 State Board for
Educator Certification
LBB Staff: JK, CT, PF, RN