LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session Revision 1 April 17, 2001 TO: Honorable Paul Sadler, Chair, House Committee on Public Education FROM: John Keel, Director, Legislative Budget Board IN RE: HB2703 by Reyna, Arthur (Relating to school district special education advocacy programs.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB2703, As Introduced: negative impact of $(20,676,000) 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. * ************************************************************************** (This revision was made to correct for an extraneous table contained in the original fiscal note.) General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $(10,338,000) * * 2003 (10,338,000) * * 2004 (10,338,000) * * 2005 (10,338,000) * * 2006 (10,338,000) * **************************************************** 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 $(10,338,000) 5.0 * * 2003 (10,338,000) 5.0 * * 2004 (10,338,000) 5.0 * * 2005 (10,338,000) 5.0 * * 2006 (10,338,000) 5.0 * *************************************************************************** Fiscal Analysis The bill directs the Texas Education Agency to distribute grants to fund new special education advocacy programs to assist low-income families that have a child who is or may be eligible for special education services. The bill allows a district to use the grant funds to contract with a nonprofit organization to establish and implement the district's advocacy program. The bill requires that the advocacy program disseminate information about special education programs in local and neighborhood newspapers, church and community newsletters, and requires posting in public areas and neighborhood businesses. Additionally, the bill would require the district to appoint a special education advocate for each low-income family, maintain records for each low-income family for whom an advocate is appointed, and account for all funds expended in connection with the program. The bill would establish the responsibilities of the special education advocate. The bill takes effect September 1, 2001. Methodology The bill does not establish a grant amount per recipient, nor does it specifically stipulate if the program is intended to serve all eligible recipients. For the purposes of this estimate, it is assumed that the program is not intended as an entitlement, and that the Texas Education Agency (TEA) would have the responsibility to determine the appropriate distribution of grant funds. It is assumed that the grant program would be funded with $10 million annually. The TEA estimates that statewide, there are approximately 275,235 low-income students who are also classified as special education students. If the special education population were to increase by one percent the total number of students would increase to 277,990. It is assumed that each advocate could provide the required services for a caseload of about 50-75 students. Using an estimate of $20,000 per advocate, an allocation of $10 million would translate to 500 advocates, able to serve between 25,000 and 37,500 students (about 9-13 percent of the population). If the program is intended as an entitlement, the entire population would require approximately 3,700- 5,600 advocates at an annual cost of $75-100 million. Using the assumptions above, TEA would require about $338,000 and five additional, full-time employees to administer the program. Local Government Impact No significant fiscal implication to units of local government is anticipated. Local school districts are required under the bill to disseminate information about special education programs and provide advocates for eligible students. Source Agencies: 701 Texas Education Agency LBB Staff: JK, CT, PF, UP