LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION
 
April 7, 2003

TO:
Honorable Kent Grusendorf, Chair, House Committee on Public Education
 
FROM:
John Keel, Director, Legislative Budget Board
 
IN RE:
HB2101 by Wong (Relating to a Texas professional teacher's academy program.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB2101, As Introduced: a negative impact of ($348,681,422) 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 ($174,390,711)
2005 ($174,290,711)
2006 ($174,290,711)
2007 ($174,290,711)
2008 ($174,290,711)




Fiscal Year Probable Savings/(Cost) from
FOUNDATION SCHOOL FUND
193 		Probable Savings/(Cost) from
GENERAL REVENUE FUND
1 		Change in Number of State Employees from FY 2003
2004 ($174,000,000) ($390,711) 5.0
2005 ($174,000,000) ($290,711) 5.0
2006 ($174,000,000) ($290,711) 5.0
2007 ($174,000,000) ($290,711) 5.0
2008 ($174,000,000) ($290,711) 5.0

Fiscal Analysis

This bill would create the Texas Professional Teacher’s Academy Program. The bill would allow professional educators to establish an academy, individually or in partnership with other professional educators.  The bill defines a professional educator as someone who holds a certificate in good standing with the State Board of Educator Certification as a teacher, principal, or superintendent.  An academy would be a private school owned and operated by professional educators.  The private school may not include education in a home setting and may not limit enrollment to relatives of the school’s staff.

 

The academy would be eligible to receive funds in the same manner as an open-enrollment charter school, except that the academy would not receive funds until the entire school year is completed.  The academy would be prohibited from sharing, refunding, or rebating any funds received from the state with the children or the parents of children attending the academy. 

 

The Commissioner of Education is granted authority to develop rules, procedures, and forms for the implementation and administration of Texas Professional Teacher’s Academy programs, including a rule that limits the number of academies that may be established under this chapter. 


Methodology

The bill would permit new private schools and existing private schools to become academies.  Census data indicate that at least 300,000 students attend private school in Texas.  Assuming that 10 percent of private school students attend schools that would become academies, approximately 30,000 students would become eligible for state funding at the rate of $5,800 per student resulting in new costs for the foundation school program of about $174,000,000. 

Texas Education Agency administration of the Academy program would require five additional full-time equivalent employees, including a program director, three program administrators, and one administrative support technician, resulting in annual personnel costs of $265,711.  This unit would also require office space and an operating budget at the cost of about $25,000 per year.  This unit would be responsible for developing an application process, reviewing applications received, and making recommendations to the commissioner of education about granting academy status. 


Technology

Changes to the Public Education Information Management System payment program  are estimated to cost approximately $100,000 during the first year of implementation.

Local Government Impact

School districts may experience a reduction in funding if they lose students who leave to attend these academies.


Source Agencies:
701 Central Education Agency, 705 State Board for Educator Certification
LBB Staff:
JK, JO, CT, UP, RN