LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

May 16, 2007

TO:	Honorable Florence Shapiro, Chair, Senate Committee on Education
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB3202 by Madden (Relating to the provision of a competitive grant program at the Texas Education Agency for funding disciplinary programs for at-risk youth.), As Engrossed

Estimated Two-year Net Impact to General Revenue Related Funds for HB3202, As Engrossed: a negative impact of ($14,080,000) 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	($7,040,000)
2009	($7,040,000)
2010	($7,040,000)
2011	($7,040,000)
2012	($7,040,000)

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from GENERAL REVENUE FUND 1
2008	($7,040,000)
2009	($7,040,000)
2010	($7,040,000)
2011	($7,040,000)
2012	($7,040,000)

Fiscal Analysis

The bill would direct the Commissioner of Education to award grants to school districts to fund case-management programs targeted at youth violence prevention, drug abuse prevention, or delinquency prevention serving at-risk students in in-school suspension or placed in disciplinary alternative education programs (DAEPs). 

Methodology

The Texas Education Agency (TEA) reports that in 2006, 88,000 students in grades 6 though 12 were referred to DAEPs and 482,000 students were placed in in-school suspension.  The cost of a twelve-month case management program, which would include referrals violence and drug prevention programs and counseling as appropriate, is estimated at $400 per student on average. 

Assuming the rate at which students are placed in DAEPs is similar from year to year and assuming that grants made under the provisions of the bill would provide 12-month case management services to 20 percent of the population of students placed in DAEPs each year, the annual cost of grant awards is estimated at $7 million.  To the extent that more students were served by the grant program, costs would increase.

TEA assumes that the program would be administered by one or more Regional Education Service Centers as authorized by the bill and estimates no additional administrative cost associated with implementation.

Local Government Impact

School districts would be able to apply for grants and receive funding for case-management programs for at-risk students in certain disciplinary settings.

Source Agencies:

701 Central Education Agency

LBB Staff:

JOB, JSp, UP, JSc