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: *************************************************************************** *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