LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 8, 2001
TO: Honorable Irma Rangel, Chair, House Committee on Higher
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1595 by Bivins (Relating to the recruitment of school
teachers, to financial assistance for persons seeking
certification as public school teachers, including
revision to the Teach for Texas grant program, and to
loan repayment assistance for certain classroom
teachers.), Committee Report 2nd House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1595, Committee Report 2nd House, Substituted: negative impact *
* of $(16,300,000) 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 $(5,650,000) *
* 2003 (10,650,000) *
* 2004 (10,650,000) *
* 2005 (10,650,000) *
* 2006 (10,650,000) *
****************************************************
All Funds, Five-Year Impact:
**************************************************************************
*Fiscal Probable Probable Change in Number of *
* Year Savings/(Cost) from Savings/(Cost) from State Employees from *
* General Revenue Fund General Revenue Fund FY 2001 *
* - THECB - SBEC *
* 0001 0001 *
* 2002 $(5,500,000) $(150,000) 5.0 *
* 2003 (10,500,000) (150,000) 7.5 *
* 2004 (10,500,000) (150,000) 7.5 *
* 2005 (10,500,000) (150,000) 7.5 *
* 2006 (10,500,000) (150,000) 7.5 *
**************************************************************************
Fiscal Analysis
This bill revises requirements and expands the existing Teach for Texas
Grant Program - separating it from the TEXAS Grant Program and renaming
it Teach for Texas Financial Assistance Program. In addition, the bill
reduces the amount of time a recipient must agree to teach in order to
receive assistance under the program from five to four years.
The bill also establishes a new Teach for Texas Alternative Certification
Assistance Program for persons with a bachelors' degree wanting to teach
in either subject areas or regions of the state that are in need of
teachers. Recipients must agree to teach for four years. As
substituted, the bill requires the Higher Education Coordinating Board
(THECB) to consult with the State Board for Educator Certification (SBEC)
in establishing the Teach for Texas Alternative Certification Assistance
Program and requires the two agencies, with the help of other public
education entities, to conduct outreach to educate potential participants
about the program. The bill as substituted also requires SBEC to advise
THECB regarding the Teach for Texas Alternative Certification Assistance
Program once it is established and authorizes SBEC to encourage the
creation and expansion of educator preparation programs through financial
incentives. In addition, the bill as substituted authorizes but does
not require the Texas Education Agency (TEA) to establish statewide
initiatives for teacher recruitment, retention, and recognition and use
any available revenue and other contributions to support such
initiatives.
The bill also creates a loan repayment program for teachers who have
taught at least one year at the pre-school, primary, or secondary level
in a public school in an area or field of acute teacher shortage. A
recipient must be employed full-time and can receive up to $1,000 per
year for five years to be used in the repayment of student loans.
All of these programs would be administered by THECB, with the exception
of efforts to create and expand educator preparation programs, for which
responsibility would go to SBEC.
Methodology
It is assumed an additional $3.0 million would be appropriated for the
Teach for Texas Programs for fiscal year 2002 and an additional $8.0
million would be appropriated for fiscal year 2003. At an average award
amount of $5,200, approximately 426 new Teach for Texas recipients would
be served in fiscal year 2002 and approximately 881 would be served above
current levels in fiscal year 2003.
The loan repayment program is estimated to require $2.5 million per year
to fund 2,500 teachers at $1,000.
The amounts above include associated administrative costs of
approximately $0.3 million per year for travel, salaries, equipment, and
other operating costs and $0.1 million to perform outreach activities to
educate participants about the Alternative Certification Assistance
Program. According to THECB, four additional full-time equivalent
employees (FTE's) would be required in fiscal year 2002 and 6.5
additional FTE's would be required in fiscal year 2003 and subsequent
years.
For SBEC, the fiscal impact of the bill is estimated to be $150,000 in
each year. According to SBEC, one additional FTE would be required in
each year. Funding would be used to create a new preparation program
capable of producing up to 100 new teacher candidates each year. In
order to do this, SBEC would use the funding to add a staff person to
handle the additional teacher candidates, to obtain limited support
equipment, and to provide training materials.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
The programs created by the bill would increase the supply of teachers
available to local school districts.
Source Agencies: 701 Texas Education Agency, 781 Texas Higher
Education Coordinating Board, 705 State Board for
Educator Certification
LBB Staff: JK, CT, DB, KC