LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 27, 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 the Teach for Texas grant program and the Teach for Texas alternative certification program.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB2513, As Introduced: negative impact of $(21,221,960) 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. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $(8,180,155) * * 2003 (13,041,805) * * 2004 (8,022,871) * * 2005 (8,022,871) * * 2006 (8,022,871) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Probable Probable Change in * * Year Savings/(Cost) Savings/(Cost) Revenue Number of State * * from General from Gain/(Loss) Employees from * * Revenue Fund Certification from FY 2001 * * 0001 and Assessment Certification * * Fees (General and Assessment * * Revenue Fund) Fees (General * * 0751 Revenue Fund) * * 0751 * * 2002 $(8,000,000) $(211,255) $31,100 6.0 * * 2003 (13,000,000) (135,255) 93,450 6.0 * * 2004 (8,000,000) (116,321) 93,450 6.0 * * 2005 (8,000,000) (116,321) 93,450 6.0 * * 2006 (8,000,000) (116,321) 93,450 6.0 * *************************************************************************** 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 3 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. In addition, the agency would spend $1 million per year in 2002 and 2003 to expand 20 existing alternative programs. For new programs, this start-up funding would be used to hire staff and provide training materials and limited support equipment. An estimated $100,000 would be needed to expand existing program capacity by 100 teacher candidates. In expanding existing programs, state assistance would be used primarily to add staff to handle the additional teacher candidates. For the biennium, it is estimated that $2.5 million a year could fund 20 entities to create new or to expand existing teacher preparation programs. SBEC estimates that funding of $2.5 million per year 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. 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 website. 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 $116,000 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. 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 $187,842 and for fiscal year 2003 will be $132,842. These expenses include salaries, computer changes, furniture, equipment and printing and mailing of brochures. 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, 705 State Board for Educator Certification, 781 Texas Higher Education Coordinating Board LBB Staff: JK, CT, PF, RN