Honorable Kent Grusendorf, Chair, House Committee on Public Education
FROM:
John Keel, Director, Legislative Budget Board
IN RE:
HB495 by Grusendorf (Relating to the administration by school districts of college preparation achievement assessment instruments to certain students.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB495, As Introduced: an impact of $0 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
$0
2005
$0
2006
($9,800,000)
2007
($9,800,000)
2008
($9,800,000)
Fiscal Year
Probable Savings/(Cost) fromGENERAL REVENUE FUND 1
2004
$0
2005
$0
2006
($9,800,000)
2007
($9,800,000)
2008
($9,800,000)
Fiscal Analysis
The bill requires the Texas Education Agency (TEA) to administer to students in grades 8, 10, and 12 a nationally normed and curriculum-based achievement assessment instrument. The bill would take effect beginning with the 2005-06 school year.
Methodology
Due to the effective date of June 1, 2005. the bill has no fiscal implications for the 2004-05 biennium. For fiscal year 2006 and beyond, TEA would meet the requirements of the bill by purchasing the ACT package of assessments that are given in grades 8, 10, and 12. Currently, the cost of the grade 8 test is $6.50 per test, the grade 10 test is $7.25 per test, and the grade 12 test is $25 per test. With 830,000 students in grades 8, 10, and 12, the annual cost for the tests as required by the bill would be $9.8 million. With statewide adoption of these tests, it is possible that the state could lower its costs significantly be negotiating a discounted rate, but potential cost reductions in this area cannot be estimated at this time.
Technology
There are no significant fiscal implications for the agency's technology costs.
Local Government Impact
No significant fiscal implication to units of local government is anticipated. Districts may face additional costs to administer the tests and report the data to TEA, but these costs are not likely to be significant.