LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

April 2, 2007

TO:	Honorable Florence Shapiro, Chair, Senate Committee on Education
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	SB50 by Zaffirini (Relating to early childhood education.), As Introduced

No significant fiscal implication to the various component agencies is anticipated.

The bill is estimated to have various cost implications to the state; however, given the resources of the affected agencies, the costs are not considered signficant.  The cost implications are discussed below: 

Section 4:   It is assumed for the purposes of this fiscal note that Section 4 of the bill simply would codify existing TWC rules regarding enhanced reimbursement rates, and therefore would not result in an increased state cost.

Section 5:  To develop an interactive internet based training module to encompass current law pre-service training requirements, DFPS anticipates that the one-time technology development costs and 2 FTEs to provide user support and content oversight on an ongoing basis would total $194,209 for FY2008 and $114,937 each year thereafter.  The agency anticipates that some portion of these amounts could be offset through the use of available federal Temporary Assistance for Needy Families (TANF) funds.

Section 12:   The potential impact to HHSC includes one additional staff to provide assistance to the Council, at a cost (including salary, benefits, and other expenses) of approximately $78,600 annually.  Additionally, HHSC estimates that Council travel expenses, for 18 members at a projected 8 meetings a year at an average of $104 per trip, would be approximately $15,000 annually.     

Section 12 also would require that stipends are provided to participants in Early Childhood Education Partnership Projects who meet certain criteria.  Information from the State Center suggests that, assuming 4 projects statewide with 30 participants each and assuming a $1,000 stipend, annual costs of the stipend would be $150,000.  The bill does not specify that the state is responsible for paying the stipend costs, but it is assumed for the purposes of this fiscal note that the stipends are intended to be a state cost.   Should the number of eligible participants be higher than this estimate, the state costs associated with this section would increase accordingly. 

Local Government Impact

School districts would be required to determine if private facilities are available and willing to provide prekindergarten services if the district lacks available classrooms.  Districts with insufficient classroom space would be required to contract with a private entity for prekindergarten programs. 

Source Agencies:

320 Texas Workforce Commission, 529 Health and Human Services Commission, 530 Family and Protective Services, Department of, 701 Central Education Agency

LBB Staff:

JOB, JSp, JGM, UP