LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 21, 2001
TO: Honorable Teel Bivins, Chair, Senate Committee on
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1595 by Bivins (Relating to financial assistance for
certain persons seeking certification as public school
teachers, including revisions to the Teach for Texas
grant program, and to loan repayment assistance for
certain classroom teachers.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1595, As Introduced: negative impact of $(16,000,000) 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. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(5,500,000) *
* 2003 (10,500,000) *
* 2004 (10,500,000) *
* 2005 (10,500,000) *
* 2006 (10,500,000) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Change in Number of State *
* Year General Revenue Fund Employees from FY 2001 *
* 0001 *
* 2002 $(5,500,000) 4.0 *
* 2003 (10,500,000) 6.5 *
* 2004 (10,500,000) 6.5 *
* 2005 (10,500,000) 6.5 *
* 2006 (10,500,000) 6.5 *
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Fiscal Analysis
This bill revises requirements and expand the existing Teach for Texas
Grant Program. It 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. 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 the Texas Higher
Education Coordinating Board (THECB).
The fiscal impact of the bill is estimated to be $5.5 million in fiscal
year 2002 and $10.5 million per year in all subsequent years, based on
information from the THECB.
An estimated 5,200 persons would be served and $2.1 million spent in
fiscal year 2002; in fiscal year 2003 and each year subsequent, 10,400
recipients would be served and $5.3 million spent to expand the existing
Teach for Texas Grant Program. An estimated $600,000 in fiscal year 2002
and $2.4 million per year in all subsequent years would be required to
fund the Teach for Texas Alternative Certification Assistance Program.
The loan repayment program is estimated to require $2.5 million per year.
In addition, administrative costs associated with the new programs are
estimated at $297,116 in fiscal year 2002 and $303,535 in fiscal year
2003 and thereafter. These costs include expenses for travel, salaries,
and other operating costs. Four additional, full-time equivalent
employees would be required by THECB in fiscal year 2002 and 6.5
additional employees in fiscal year 2003 and subsequent years.
Methodology
The fiscal impact of the bill is estimated to be $5.5 million in fiscal
year 2002 and $10.5 million per year in all subsequent years, based on
information from the THECB and the State Board for Educator Certification
(SBEC).
An estimated 5,200 persons would be served and $2.1 million spent in
fiscal year 2002; in fiscal year 2003 and each year subsequent, 10,400
recipients would be served and $5.3 million spent to expand the existing
Teach for Texas Grant Program. An estimated $600,000 in fiscal year 2002
and $2.4 million per year in all subsequent years would be required to
fund the Teach for Texas Alternative Certification Assistance Program.
The loan repayment program is estimated to require $2.5 million per year.
In addition, administrative costs associated with the new programs are
estimated at $297,116 in fiscal year 2002 and $303,535 in fiscal year
2003 and thereafter. These costs include expenses for travel, salaries,
and other operating costs. Four additional, full-time equivalent
employees would be required by THECB in fiscal year 2002 and 6.5
additional employees in fiscal year 2003 and subsequent years.
The Teach for Texas Alternative Certification Assistance Program cost
provided by SBEC is based on the statewide average cost for alternative
education. The funding of this program at $2.4 million per year (2003
and thereafter) would provide the state with 480 new teachers per year,
assuming a stipend of $5,000 per year.
The loan repayment program estimate assumes 2,500 teachers would be
awarded loan repayment assistance at a level of $1,000 per teacher for
five years.
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, 705 State Board for
Educator Certification
LBB Staff: JK, CT, RN, KC