LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION

March 31, 2003

TO:	Honorable Kent Grusendorf, Chair, House Committee on Public Education
FROM:	John Keel, Director, Legislative Budget Board
IN RE:	HB347 by Dutton (Relating to sanctions imposed on low-performing public schools.), As Introduced

No significant fiscal implication to the State is anticipated. 

To the degree to which the bill relates to the Commissioner's sanctions against schools rated low-performing for a period of two years, it has no effect on the Foundation School Program or the operations of the Texas Education Agency.

Local Government Impact

Under the bill, the Commissioner would be obligated to either (1) mandate a 10:1 student-teacher ratio at the low-performing schools or (2) close the school.  The number of campuses and districts that would be affected would vary from year to year.  Based 2001 and 2002 ratings, six campuses in five districts would currently be subject to the requirements of the bill.  Based on data from these campuses, the 10:1 student-teacher ratio requirement would necessitate 181 additional full-time employees at an average salary of $39,230, costing the affected districts approximately $7.1 million annually. 

Beginning in 2004, campuses and districts will rated based on a more rigorous set of student assessments.  It is possible that the number of campuses subject to the provisions of the bill, and resulting district costs, could increase significantly.

Source Agencies:	701 Central Education Agency
LBB Staff:	JK, CT, UP, JGM