LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 23, 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 laon repayment assistance for
               certain classroom teachers.), Committee Report 1st
               House, Substituted
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB1595, Committee Report 1st House, Substituted:  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.                                                             *
**************************************************************************
  
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:
  
***************************************************************************
*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 *
***************************************************************************
  
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).
  
  
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 $304,700 in fiscal year 2002 , $303,493 in fiscal year 2003,
and $283,493 for fiscal year 2004 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