LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION

April 27, 2003

TO:	Honorable Kent Grusendorf, Chair, House Committee on Public Education
FROM:	John Keel, Director, Legislative Budget Board
IN RE:	HB2218 by Grusendorf (Relating to a public school district virtual campus contract charter. ), Committee Report 1st House, Substituted

No significant fiscal implication to the State is anticipated.

The bill would allow school districts to offer electronic courses through a designated campus or a full-time program serving students throughout the districts.  A district would be eligible to receive federal, state and local funds for a student enrolled in the electronic course, and the bill would give districts the option of calculating average daily attendance based on contact hours, course completion, or another method approved by the commissioner of education.  The bill would extend the expiration of the electronic courses program from September 1, 2003 to January 1, 2007.  The commissioner would be required to submit a report to the lieutenant governor and the speaker of the house no later than December 1, 2006.

Based on experience with the existing electronic courses program, the Texas Education Agency does not expect the bill to have any significant impact on the state cost of the Foundation School Program.  The agency may incur some administrative expenses related to creating a format for district "informed choice" reports and the completion of final program evaluation report, but it is expected that the administrative fees the bill would authorize the commissioner to collect would cover most if not all of those costs.  

Local Government Impact

School districts potentially could be charged an administrative fee for program participation.  Districts would be required to develop and implement new administrative and reporting procedures for tracking contact hours and/or course completions and preparing the "informed choice" reports, but these expenses are not expected to be significant.

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