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:
  
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*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