LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
                                Revision 1
  
                               May 22, 2001
  
  
          TO:  Honorable Bill Ratliff, Lieutenant Governor,  Senate
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB826  by Truan (Relating to the location of public
               education schools, programs, and classes.), As Passed 2nd
               House
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB826, As Passed 2nd House:  negative impact of $(329,394) 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                           $(131,758)  *
          *       2003                            (197,636)  *
          *       2004                            (263,515)  *
          *       2005                            (296,454)  *
          *       2006                            (362,333)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
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*Fiscal    Probable Savings/(Cost) from     Change in Number of State     *
* Year        Foundation School Fund          Employees from FY 2001      *
*                      0193                                               *
*  2002                        $(131,758)                             2.0 *
*  2003                         (197,636)                             3.0 *
*  2004                         (263,515)                             4.0 *
*  2005                         (296,454)                             4.5 *
*  2006                         (362,333)                             5.5 *
***************************************************************************
  
Fiscal Analysis
  
The bill would allow a university to grant consent to any school district
and that such a consent is not limited to those districts whose
geographical boundaries encompass the location of the college,
university, or community college where the program or classes are held.
It would allow a school district to operate a school or program or hold a
class outside the boundaries of a the school district.

The bill would authorize school districts to implement virtual classroom
programs in grades 6 through 12.  The bill would exempt districts that
offer such programs from various laws, including 180 days of instruction,
seven-hour school days, the requirement to attend all day, and the
requirement to attend 90% of the days to receive course credit.

The Commissioner of Education would be authorized to adopt rules that
would allow districts to receive credit for the attendance of students in
the program.

The bill requires the Texas Education Agency (TEA) to monitor, evaluate,
and assess the development and implementation of each virtual classroom
program.
  
  
Methodology
  
Regarding the state costs for monitoring and evaluating virtual classroom
programs, the TEA estimates that it would need one additional
professional employee for every 60 programs that districts implement.
This assumption would mean two such employees in fiscal 2002, with a
total salary, benefits, and travel cost of $131,758, and steadily
increasing each year thereafter.  It is assumed that, at some point
after fiscal year 2006, the monitoring and evaluation requirements would
require less direct intervention by the TEA staff, and staffing needs
would increase more slowly.
  
  
Local Government Impact
  
School districts that choose to create a virtual classroom environment
may be able to realize savings from being able to instruct students with
fewer staff.  However, there may be higher technology costs associated
with the particular classroom design.
  
  
Source Agencies:   
LBB Staff:         JK, SD