LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 2, 2001
TO: Honorable Paul Sadler, Chair, House Committee on Public
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2546 by Dutton (Relating to sanctions imposed on
low-performing public schools.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2546, As Introduced: negative impact of $(2,400,000) 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 $(1,200,000) *
* 2003 (1,200,000) *
* 2004 (1,200,000) *
* 2005 (1,200,000) *
* 2006 (1,200,000) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* General Revenue Fund *
* 0001 *
* 2002 $(1,200,000) *
* 2003 (1,200,000) *
* 2004 (1,200,000) *
* 2005 (1,200,000) *
* 2006 (1,200,000) *
*****************************************************
Fiscal Analysis
Under the bill, if a campus is low-performing for a period of two years,
the Commissioner of Education would be obligated to either (1) order that
the campus employ only certified teachers and employ a sufficient number
of such teachers to maintain a ratio of 10 students in average daily
attendance to 1 teacher; or (2) order closure of the campus. If the
Commissioner ordered a option 1 and the campus remained low-performing
for a period of two additional years, the Commissioner would be obligated
to close the school.
Methodology
According to the Texas Education Agency, based on 1999 and 2000 ratings
there are 21 campuses in eight districts that have been designated as
"low-performing" for a period of two years. For the purposes of this
fiscal note, it is assumed that approximately this number of campuses
would subject to the requirements of the bill in each year. Using
teacher and attendance counts from these campuses, and assuming all
teachers are certified, the eight districts would have to hire
approximately 602 additional certified teacher to meet the bill's
requirements for a 10:1 student-teacher ratio at the 21 affected
campuses.
At an average salary of $38,400, the 602 additional teachers would
represent a local annual salary cost of $23,116,800. The state
contributes six percent of teacher salary, up to the state minimum salary
schedule amount, for teacher retirement. Additionally, the state
contributes 0.5 percent of all salary to TRS-Care, the health care
program for retired teachers. These state costs are estimated to total
$1,200,000 annually.
It is possible that campuses at which the student-teacher ratio is
reduced to 10:1 would improve their performance the following year and
not be rated low-performing. At that point, if the Commissioner has
lifted the intervention order, these campuses may shed some of the
additional teachers that had been required to hire. However, it is also
possible that other campuses would be rated low-performing for the
second consecutive year, placing them under this bill's provisions.
Thus for the purposes of this fiscal note, the net number of additional
teachers hired at districts around the state is assumed to stay
generally level for each year of the next biennium and in the out years;
however, the number of campuses affected and the associated costs in any
given year could vary widely.
Local Government Impact
As noted above, the eight districts that would have been affected by this
bill in the current school year would have been required to hire an
additional 602 certified teachers at the 21 affected campuses to meet
the 10:1 requirement in this bill. At an average salary of $38,400, the
602 teachers would represent an annual salary cost to school districts
of about $23,116,800. The number of districts and campuses affected and
the associated costs in any given year could vary widely.
Source Agencies: 701 Texas Education Agency
LBB Staff: JK, CT, JM