LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

April 27, 2007

TO:	Honorable Rob Eissler, Chair, House Committee on Public Education
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB1924 by Kolkhorst ( Relating to career and technology programs and certain articulation agreements in public schools.), Committee Report 1st House, Substituted

Estimated Two-year Net Impact to General Revenue Related Funds for HB1924, Committee Report 1st House, Substituted: a negative impact of ($7,200,000) through the biennium ending August 31, 2009.

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
2008	($3,400,000)
2009	($3,800,000)
2010	($4,300,000)
2011	($4,800,000)
2012	($5,100,000)

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from FOUNDATION SCHOOL FUND 193
2008	($3,400,000)
2009	($3,800,000)
2010	($4,300,000)
2011	($4,800,000)
2012	($5,100,000)

Fiscal Analysis

The bill requires the Texas Education Agency to establish a panel to review and make recommendations on career and technology education programs.

The bill establishes a 6-year pilot program extending the Foundation School Program weight for students taking career and technology courses in the 8th grade in districts located in Region 6 and Region 20.

Methodology

In FY2007 there are an estimated 1,550 FTEs in grade 8 in career and technology education programs in regions 6 and 20.  Assuming these FTEs would grow in a manner similar to statewide enrollment growth yields approximately 1,580 career and technology FTEs in grade 8 in those regions for FY2008.  However, it is likely that the bill would provide an incentive to school districts to expand their grade 8 career and technology offerings and increase enrollment in these courses.  Due to the scheduling and staffing changes required, it is estimated that districts would increase their career and technology offerings over time.  For the purposes of this fiscal note, it is assumed that districts would implement changes such that grade 8 career and technology course FTEs increase by 10 percent annually.  This would produce a state FSP cost of approximately $3.4 million in FY2008, $3.8 million in FY2009, with costs increasing similarly in each year thereafter.    

Local Government Impact

School districts in the targeted regions would experience a state aid increase associated with students in with career and technology courses.

Source Agencies:

701 Central Education Agency

LBB Staff:

JOB, JSp, UP