LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION

May 13, 2003

TO:	Honorable Florence Shapiro, Chair, Senate Committee on Education
FROM:	John Keel, Director, Legislative Budget Board
IN RE:	HB2825 by Eissler (Relating to compliance monitoring of school districts by the commissioner of education and the Texas Education Agency.), As Engrossed

Estimated Two-year Net Impact to General Revenue Related Funds for HB2825, As Engrossed: a positive impact of $1,749,184 through the biennium ending August 31, 2005.

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2004	$874,592
2005	$874,592
2006	$874,592
2007	$874,592
2008	$874,592

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from GENERAL REVENUE FUND 1	Change in Number of State Employees from FY 2003
2004	$874,592	(14.0)
2005	$874,592	(14.0)
2006	$874,592	(14.0)
2007	$874,592	(14.0)
2008	$874,592	(14.0)

Fiscal Analysis

The bill would limit compliance monitoring only to activities necessary to comply with federal law or regulations and to ensure data integrity for the purposes of the Public Education Information Management System (PEIMS) and the state’s accountability system. 

Methodology

The bill would result in cost savings for the operations of the Texas Education Agency.  The agency estimates that the reduction in monitoring requirements would entail the savings of approximately 14.0 FTEs and $874,592 annually in corresponding costs of salary, travel and other operating expenses.

Technology

The bill has no fiscal implications to the technology costs of the state.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.  The bill would require school districts to be responsible for compliance with a state law that is not monitored by the agency. 

Source Agencies:

701 Central Education Agency

LBB Staff:

JK, CT, UP, JGM