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: HB3138 by Hilbert (Relating to the costs of and reducing
the need for remedial education of high school
graduates.), As Introduced
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3138, As Introduced: positive impact of $20,968,548 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 $10,228,560 *
* 2003 10,739,988 *
* 2004 11,276,987 *
* 2005 11,840,836 *
* 2006 12,432,877 *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* General Revenue Fund *
* 0001 *
* 2002 $10,228,560 *
* 2003 10,739,988 *
* 2004 11,276,987 *
* 2005 11,840,836 *
* 2006 12,432,877 *
*****************************************************
Fiscal Analysis
The bill gives the Commissioner of Education the authority to assign all
or part of the costs of postsecondary remedial services to school
districts that consistently graduate students who require such remedial
training. The savings to General Revenue as a result of this bill are
estimated to be $10,228,560 in fiscal year 2002, $10,739,988 in 2003,
and gradually increasing in each year thereafter.
Methodology
This bill would require the State Board of Education and the Higher
Education Coordinating Board to adopt rules to facilitate charging school
districts for postsecondary remedial education costs. For the purposes
of this fiscal note, it is assumed that districts would be charged for
these costs only in cases in which students took a college-prep
curriculum and subsequently were reuiqred to enroll in developmental
education courses in a Texas college or university. It is also assumed
that the reimbursement would be for the full amount of the cost to the
state.
The Higher Education Coordinating Board estimates, based on the best
available data, that there would be approximately 40,112 students in 2002
who graduated from high school under a college preparatory curriculum
who would require remedial education. It is assumed that each student
would require only one remedial course, which would cost the state $240
at a community college and $300 at a four-year institution. Based on
current trends that show 3 out of every 4 developmental education
students attend community college, these costs are calculated to be
$,7,220,160 for community college (30,084 students X $240) and $3,008,400
(10,028 X $300), for a total of $10,228,560 in 2002.
It is also assumed that, as a larger percentage of high school graduates
enter college, the number of them that will require remedial education
will similarly increase. This increase is estimated at 5 percent per
year.
Local Government Impact
School districts selected by the commissioner of education would have to
pay for the above-mentioned costs of postsecondary remedial education.
The cost will vary between districts based on the number of students
that graduated from that district who are in college but not college
ready.
Source Agencies: 781 Texas Higher Education Coordinating Board, 701
Texas Education Agency
LBB Staff: JK, CT, JM