LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION
Revision 1
 
March 19, 2003

TO:
Honorable Kent Grusendorf, Chair, House Committee on Public Education
 
FROM:
John Keel, Director, Legislative Budget Board
 
IN RE:
HB348 by Dutton (Relating to participation in the Teacher Retirement System of Texas by employees of certain campus or campus program charter schools.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB348, As Introduced: a negative impact of ($1,372,800) through the biennium ending August 31, 2005.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2004 ($686,400)
2005 ($686,400)
2006 ($686,400)
2007 ($686,400)
2008 ($686,400)




Fiscal Year Probable Savings/(Cost) from
GENERAL REVENUE FUND
1
2004 ($686,400)
2005 ($686,400)
2006 ($686,400)
2007 ($686,400)
2008 ($686,400)

Fiscal Analysis

The bill would provide Teacher Retirement System membership to employees of campus or program charters operating under contract with a school district. According to the Texas Education Agency, only the Houston Independent School District contracts with local charter schools. 


Methodology

Extending membership to this group of employees would entail additional cost to the state in the form of state retirement and retiree group insurance contributions. 

 

According to Houston ISD staff, the school district contracts with 13 charter schools, which employ approximately 352 employees.  Providing state retirement and retiree insurance contributions for these employees would result in estimated annual General Revenue costs of $686,400.


Local Government Impact

No significant fiscal implication to units of local government is anticipated.


Source Agencies:
323 Teacher Retirement System, 701 Central Education Agency
LBB Staff:
JK, JO, CT, UP, RN