LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 28, 2001
  
  
          TO:  Honorable Teel Bivins, Chair, Senate Committee on
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1602  by Staples (Relating to career and technology
               education in public schools.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB1602, As Introduced:  negative impact of $(5,000,000) 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                         $(2,500,000)  *
          *       2003                          (2,500,000)  *
          *       2004                          (2,500,000)  *
          *       2005                          (2,500,000)  *
          *       2006                          (2,500,000)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                     Foundation School Fund         *
         *                              0193                  *
         *      2002                             $(2,500,000) *
         *      2003                              (2,500,000) *
         *      2004                              (2,500,000) *
         *      2005                              (2,500,000) *
         *      2006                              (2,500,000) *
         *****************************************************
  
Fiscal Analysis
  
The bill authorizes the Commissioner of Education to allow districts to
substitute career and technology courses for courses in the required
curriculum, if the courses are substantially identical.
  
  
Methodology
  
Since the bill permits the Commissioner to allow school districts to
substitute career and technology courses for the required curriculum
under certain circumstances, local districts would probably substitute
courses as a way to more efficiently utilize career and technology
instructional staff.  Current law requires this staff provide at least
four technology applications courses.

Because career and technology courses are funded in the Foundation School
Program at a level that is 37 percent  higher than traditional academic
courses, course substitutions would have a fiscal effect.  A 10,000
increase in enrollments in career and technology courses instead of the
required curriculum would require a one percent increase in career and
technology full-time staff.  The Texas Education Agency estimates this
added staffing would cost the Foundation School Program $2.5 million per
year.
  
  
Local Government Impact
  
To the extent that districts are allowed to substitute courses and a
significant number of students enroll in the career and technology
courses rather than the regular courses, districts would realize
additional state aid of about $2.5 million per year.
  
  
Source Agencies:   701   Texas Education Agency
LBB Staff:         JK, CT, PF, RN