LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION

April 29, 2003

TO:	Honorable Florence Shapiro, Chair, Senate Committee on Education
FROM:	John Keel, Director, Legislative Budget Board
IN RE:	HB2723 by Gutierrez (Relating to alternative teaching certification of persons holding certain advanced academic degrees.), As Engrossed

Estimated Two-year Net Impact to General Revenue Related Funds for HB2723, As Engrossed: a positive impact of $782,394 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.

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2004	$390,393
2005	$392,001
2006	$393,641
2007	$395,314
2008	$397,020

All Funds, Five-Year Impact:

Fiscal Year	Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1	Probable Savings/(Cost) from GENERAL REVENUE FUND 1	Change in Number of State Employees from FY 2003
2004	$351,100	$39,293	1.0
2005	$351,100	$40,901	1.0
2006	$351,100	$42,541	1.0
2007	$351,100	$44,214	1.0
2008	$351,100	$45,920	1.0

Fiscal Analysis

The bill would allow the State Board for Educator Certification to issue a teaching certificate to anyone who holds a master’s or other advanced degree that is related to at least one area of the middle school or secondary school curriculum, without completion of a teacher training program or satisfactory performance on a teacher certification examination.

Methodology

The State Board for Educator Certification estimates that 600 individuals each year would not be required to take the teacher certification examination if this legislation passes.  This would result in the state receiving less examination revenue.  Currently, an individual must take two examinations, a teaching skills (pedagogy) test and a subject matter test, each at a cost of $72. Based on these parameters, the General Revenue fund would lose $86,400 each year in examination revenue. 

The agency estimates that 2,500 individuals each year would apply for the certification authorized by the bill.  Based on a credential review fee of $175 per individual, the agency estimates $437,500 in increased annual certification revenue. Overall, the annual net gain to General Revenue is estimated to be $351,100. 

The State Board for Educator Certification would require one additional full-time equivalent employees and about $41,107 in annual personnel costs to perform the  review responsibilities that would result from implementation of the legislation. However, annual test administration costs paid to the testing contractor by the agency would decrease by about $80,400, reflecting the reduced number of examinations. Overall, total agency costs would decrease by about $39,293 in fiscal year 2004, and $40,901 in fiscal year 2005, because the savings from reduced test administration more than offsets the increase in agency personnel costs.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:	705 State Board for Educator Certification
LBB Staff:	JK, CT, UP, RN