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