81(R) SB 183 - Introduced version

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2010	($670,758)
2011	($505,758)
2012	($505,758)
2013	($505,758)
2014	($505,758)

Fiscal Year	Probable Savings/(Cost) from General Revenue Fund 1	Change in Number of State Employees from FY 2009
2010	($670,758)	6.0
2011	($505,758)	6.0
2012	($505,758)	6.0
2013	($505,758)	6.0
2014	($505,758)	6.0

The bill would establish a school choice program to allow public school students with disabilities to attend a program provided by a nongovernmental community-based educational establishment. Through amendment to the public education grant program, the bill would also allow students with disabilities to choose to attend another public school in the district or transfer to another school district. As described below, fiscal implications for state costs under the Foundation School Program are not anticipated to reach significant levels. The Texas Education Agency would incur cost to administer the school choice program. Administrative operating costs for the program, would be estimated to be $670,758 for FY2010, decreasing to $505,758 in FY2011 and subsequent fiscal years.

The bill would take effect September 1, 2009 or immediately upon enactment by the necessary voting margins and would apply beginning with the 2009-2010 school year.

The bill defines eligible students to include children who meet the following conditions: (1) are in kindergarten through grade 12 and are eligible to receive special education services; (2) have an individualized educational program (IEP) that has been developed under the public school special education program. Because of the requirement that an eligible student have an existing IEP, it is assumed for the purpose of this fiscal note that the vast majority of students who would choose to participate in the program would currently be enrolled in public schools. The bill’s funding provisions describe a transfer of Foundation School Program (FSP) entitlement in the form of an annual scholarship payable to a qualifying school selected by the student’s parents. The amount of the scholarship would be equal to the amount of funding to which the district in which the student resides is entitled under the Foundation School Program Tier 1 Special Education Allotment. There is the potential for additional state costs under the FSP under a scenario in which students that otherwise would have enrolled in the 2008-09 school year directly in a nongovernmental community-based education establishment instead enroll in public school to establish eligibility under the bill, and then transfer to the nongovernmental school with state aid. This potential impact cannot be estimated; however, the IEP requirement under the bill may reduce the practicality of this option for such students.

The bill would have fiscal impact for the administrative operations of the Texas Education Agency. Costs to administer the program would be assumed to be a function both of the number of student participants and the number of participating nongovernmental community-based education establishments.

During the 2008-2009 school year, approximately 427,400 students receiving special education services in grades kindergarten through 12 were enrolled in Texas public schools. Assuming that this population grows at an annual rate comparable to the student population overall, the population of students eligible to participate in the program under this bill would reach approximately 435,300 in FY2010, the first year that students would be allowed to participate in the program. For the purpose of this estimate it is assumed that 10% of eligible students, about 43,530 students, would choose to participate in the program. Based on the administrative mechanisms described in the bill, it is estimated that a total of 6.0 FTEs would be required to implement and support the operations of the program that is to be made available in FY10 under the bill. Costs associated with administrative operations would be anticipated to be approximately $670,758 in FY10, including office equipment and technology development. In subsequent years, estimated costs of $505,758 including technology would be anticipated annually.

The bill would affect the Agency's data collection and funding calculation systems. Existing attendance reporting and FSP-related and funding calculation structures would require significant modification to implement the funding mechanisms described in the bill. Costs would be incurred to develop and maintain alternative attendance reporting and funding and payment calculation structures. Estimates costs for contracted systems development would be approximately $225,000 in fiscal year 2010. Ongoing systems maintenance contract costs would be estimated to be $100,000 per year in FY2011 and subsequent years.

School districts would experience increased workload associated with providing the annual notification to parents of students who are eligible to participate in the program and processing requests for transfer of student records to qualifying nongovernmental community-based education establishments or to other school districts under the public education grant program. Costs associated with these activities would be anticipated to vary widely among districts depending upon the degree of automation of student records information and the number of participating students in the district. School districts would experience a reduction in Foundation School Program entitlement associated with students who choose to attend qualifying nongovernmental community-based educational establishments.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION


April 6, 2009

TO:	Honorable Florence Shapiro, Chair, Senate Committee on Education

FROM:	John S. O'Brien, Director, Legislative Budget Board

IN RE:	SB183 by Williams (Relating to a school choice program for certain students with disabilities.), As Introduced