LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 9, 2001 TO: Honorable Paul Sadler, Chair, House Committee on Public Education FROM: John Keel, Director, Legislative Budget Board IN RE: HB2609 by Giddings (Relating to prekindergarten programs for public school students.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB2609, As Introduced: negative impact of $(250,218) 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 $(125,109) * * 2003 (125,109) * * 2004 (125,109) * * 2005 (125,109) * * 2006 (125,109) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Change in Number of State * * Year General Revenue Fund Employees from FY 2001 * * 0001 * * 2002 $(125,109) 2.0 * * 2003 (125,109) 2.0 * * 2004 (125,109) 2.0 * * 2005 (125,109) 2.0 * * 2006 (125,109) 2.0 * *************************************************************************** Technology Impact The bill minimally affects the Texas Education Agency's (TEA) technology costs. One-time costs associated with analysis and programming related to new PEIMS data elements are estimated to be about $25,000. Fiscal Analysis This bill authorizes school districts to establish tuition-supported prekindergarten programs to provide an additional half-day program for children currently eligible to attend half-day prekindergarten and to provide half and full-day classes to students who do not meet the current eligibility criteria. The bill limits tuition to the amount necessary to cover the cost of the program. The bill requires all school districts offering any type of prekindergarten program as part of PEIMS submissions to report demographic information on students enrolled in eligibility-restricted prekindergarten programs, the numbers of half and full-day prekindergarten classes offered by the district, and the sources of funding for prekindergarten classes. The bill requires TEA, in consultation with the Texas Department of Human Services, federal Head Start programs, and other providers of prekindergarten programs receiving state and federal funds, to develop indicators for the evaluation of prekindergarten programs. TEA would be required to use the indicators to evaluate all school district prekindergarten programs that receive state and federal funds as part of the accreditation review of the district. Methodology TEA would incur additional operating costs associated with the evaluation of all school district prekindergarten programs as part of the accreditation review of the district. Based on an analysis of current accreditation activities, the additional workload associated with the evaluation of prekindergarten would be equivalent to about 2.0 TEA, plus associated travel expenses. Local Government Impact No new actions would be required of school districts. Districts would be given the authority to establish additional half and full-day tuition-supported prekindergarten programs for students who are eligible for current half-day prekindergarten programs and for children who do not qualify for prekindergarten programs under current law. Districts would be authorized to charge tuition at a rate limited to an amount needed to cover the costs of providing the tuition-supported program. Districts would be required to report demographic information on students enrolled in eligibility-restricted prekindergarten programs as well as the numbers of half and full-day prekindergarten classes offered by the district and the sources of funding for prekindergarten classes. Source Agencies: 701 Texas Education Agency LBB Staff: JK, CT, UP