LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 27, 2001 TO: Honorable Teel Bivins, Chair, Senate Committee on Education FROM: John Keel, Director, Legislative Budget Board IN RE: SB852 by Harris (Relating to public school teachers.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB852, As Introduced: negative impact of $(61,689,360) 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 $(31,784,180) * * 2003 (29,905,180) * * 2004 (31,147,463) * * 2005 (32,491,029) * * 2006 (34,091,029) * **************************************************** All Funds, Five-Year Impact: ************************************************************************** *Fiscal Probable Probable Revenue Change in Number of * * Year Savings/(Cost) from Gain/(Loss) from State Employees from * * General Revenue Fund Certification and FY 2001 * * 0001 Assessment Fees * * (General Revenue * * Fund) * * 0751 * * 2002 $(32,000,000) $215,820 2.0 * * 2003 (30,300,000) 394,820 2.0 * * 2004 (31,700,000) 552,537 2.0 * * 2005 (33,200,000) 708,971 2.0 * * 2006 (34,800,000) 708,971 2.0 * ************************************************************************** Fiscal Analysis The bill modifies statutes regarding public school teaching. Specifically, it creates incentive programs targeted at addressing the quality of teaching and academic achievement in public schools. It would authorize the commissioner of education to make grants to school districts for each new teacher hired who is newly certified by an alternative certification program or holds a district teaching permit. It also authorizes grants for each new teacher hired from a traditional certification program or from out-of-state programs. The funds would be used for mentor or induction programs, longer contracts for new teachers, signing bonuses, or higher education expenses. Also, it would provide for a $3,000 bonus for experienced teachers that agree to serve at low-performing campuses for three years. The bill would authorize the State Board for Educator Certification (SBEC) to certify teachers in a subject area with only passage of the examination and a bachelor's degree in the relevant field. The bill removes provisions concerning parental notification of inappropriately certified staff and substitutes a general notification requirement for all teachers. Methodology Section 1 of the bill authorizes a new grant program related to newly-hired teachers. This grant program would provide $3,000 to districts for each new teacher hired from an alternative certification program or who is teaching on a district permit, and traditionally-prepared educators would be eligible for the $1,000 grant. In 1999-2000, an estimated 2,900 new teachers were employed from alternative certification programs or with district teaching permits. An additional 17,300 teachers entered the profession from traditional programs or other sources. The estimated cost of the grants would range from $27,335,000 in fiscal year 2002 to $33,200,000 in fiscal year 2006. Section 2 of the bill allows individuals having college degrees to become certified teachers without participating in an educator preparation program. SBEC estimates the additional number of individuals certified as a result of Section 3 as 3,000 in fiscal year 2002, 4,000 in fiscal year 2003, 5,000 in fiscal year 2004, and 6,000 in each year of fiscal years 2005 and 2006. These additional candidates for certification increase the number of exams given and certificates issued, providing additional fee revenue. Because the bill requires the degree to be in an academic major or discipline related to at least one area of the public school curriculum, SBEC must review college transcripts and other documentation to determine eligibility. This review will require an increase in agency staff and expenditures, which would be paid from certification and exam fee revenue. There would be net increase in revenue of $215,820 in fiscal year 2002 and $394,820 in fiscal year 2003, as reflected in the third column of the fiscal impact table above. Section 4 provides for a $3,000 one-time bonus for experienced teachers agreeing to serve at low-performing campuses for three years. In the current year, there are 146 low-performing campuses, but that number is expected to rise over time with changes in the state's testing program. In a recent year, the average number of teachers per campus was 38. If 20% of the positions at 200 low-performing campuses are filled by experienced teachers that receive the award, then it is estimated that 1,520 teachers would receive awards totaling $4,560,000. After a high initial cost, the actual annual cash outlays should decline somewhat, since there has typically not been 100% turnover in those campuses rated low-performing from year to year. For the purposes of this estimate, it is assumed that 500 new teachers would qualify for the bonus in any given year. This program requires monitoring of employment over a three year time period. This monitoring, the Texas Education Agency (TEA) estimates would require one additional professional employee and one administrative support employee at a combined annual cost of $88,969. Local Government Impact School districts and their teachers would receive state grants associated with the teacher mentor and experienced teacher programs. These two new programs could allocate as much as $100 million per year to qualifying school districts. Districts would be required to provide teacher certification information to all parents. TEA estimates these parent notification requirements would cost school districts statewide approximately $360,000 annually. Source Agencies: 701 Texas Education Agency, 705 State Board for Educator Certification LBB Staff: JK, CT, RN