LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 17, 2001
TO: Honorable Paul Sadler, Chair, House Committee on Public
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3164 by Chavez (Relating to standards for
prekindergarten programs and coordination of resources
among prekindergarten programs and other child-care
programs.), As Introduced
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3164, As Introduced: negative impact of $(2,682,224) 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 $(994,596) *
* 2003 (1,687,628) *
* 2004 (1,562,419) *
* 2005 (1,592,594) *
* 2006 (1,622,769) *
****************************************************
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 $(994,596) 21.0 *
* 2003 (1,687,628) 35.0 *
* 2004 (1,562,419) 36.0 *
* 2005 (1,592,594) 36.0 *
* 2006 (1,622,769) 37.0 *
***************************************************************************
Fiscal Analysis
The bill requires school district pre-kindergarten programs to comply
with applicable child-care licensing standards adopted by the Department
of Protective and Regulatory Services. The bill requires the State
Board of Education adopt rules to ensure school district compliance with
applicable standards. The bill requires school districts to coordinate
existing, pre-kindergarten programs with Head Start and other licensed
child-care programs, and to investigate site-sharing opportunities with
these programs, before initiating a new pre-kindergarten program.
Methodology
For the purposes of this estimate, school districts are assumed to comply
with all child-care licensing standards. Since the bill places
responsibility to ensure compliance on the State Board of Education
(SBOE), it is assumed that the staff of the Texas Education Agency would
carry out necessary activities to ensure compliance. Similar compliance
activities by the Department of Protective and Regulatory Service (DPRS)
would cost an estimated $995,000 in 2002 and $1,700,000 in 2003. That
estimate assumes a 12-month period to undertake site-compliance visits.
Such activity would also require an additional 21 employees in fiscal
year 2002 and 35 employees in fiscal year 2003.
Under its rule-making authority, the SBOE may choose to only identify
certain standards as "applicable" for public schools. In that case, the
cost to ensure compliance could be less.
Local Government Impact
Under the assumption that local school districts with pre-kindergarten
programs would meet all of the licensing requirements adopted by DPRS,
campuses would likely incur expenses. The bill gives pre-kindergarten
programs in operation before the effective date of the bill (September 1,
2001) until September 1, 2004 to come into compliance. Child-care
licensing standards have both lower student-teacher ratios and higher
space per student requirements. The Texas Education Agency estimates
that meeting the lower student-teacher ratios would cost local districts
$13 million by 2004.
Certain school districts may also incur costs associated with the bill's
requirement for coordination efforts with Head Start and other existing
child care programs.
Source Agencies: 530 Department of Protective and Regulatory
Services, 701 Texas Education Agency
LBB Staff: JK, CT, PF, UP