81(R) SB 1313 - Engrossed version

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2010	($33,232,911)
2011	($29,868,429)
2012	($29,229,533)
2013	($28,885,061)
2014	($28,859,553)

Fiscal Year	Probable Savings/(Cost) from General Revenue Fund 1	Probable Savings/(Cost) from Foundation School Fund 193	Probable Savings/(Cost) from Wrkforce Commission Fed 5026	Change in Number of State Employees from FY 2009
2010	($21,589,243)	($11,643,668)	$0	24.8
2011	($18,423,785)	($11,444,644)	$0	24.8
2012	($18,450,835)	($10,778,698)	$0	24.8
2013	($18,478,427)	($10,406,634)	($100,000)	24.8
2014	($18,506,570)	($10,352,983)	$0	24.8

Section 1, would extend the Best Practices Clearinghouse to include career and technology education and would allow open-enrollment charter schools and certain campuses and school districts rated academically acceptable to submit practices. The bill would require the Texas Education Agency (TEA) to conduct a study and develop recommendations regarding potential uses of the Best Practices Clearinghouse for the purposes of providing technical assistance and support.

Section 2, would require the State Board of Education (SBOE) to revise the relevant Texas Essential Knowledge and Skills (TEKS) when the Texas Higher Education Coordinating Board (THECB) revises the Internet database of the statewide inventory of workforce education courses.

Section 3, would require the Texas Workforce Commission (TWC) to develop a list of high-demand, high-wage, high-skill occupations that require licensure, certification, an associate degree, or a bachelor's degree.

Section 4, would remove the requirement that students demonstrate financial need to qualify for subsidies for industry certification exams provided to students enrolled in a career and technology program who pass an exam and earn a certification for employment in high-demand, high-wage, or high-skill fields. The bill would extend subsidies to any student served through special education who passes a certifcation examination to qualify for employment.

Section 6, would provide a Foundation School Program (FSP) allotment of $50 per student enrolled in two or more advanced career and technology courses or an advanced course as part of a tech-prep program.

Section 7, of the bill would amend Section 54.0065(a), Education Code, to exclude an articulated or a dual credit course for which a student received credit toward a high school diploma when determining whether a student was eligible for an undergraduate tuition rebate.

Section 8, of the bill would amend Section 61.0595(d), Education Code, to exclude an articulated or a dual credit course for which a student received credit toward a high school diploma or another course that did not count toward a student's specific degree program when determining excess undergraduate credit hours.

Section 9, would require THECB to conduct an economic impact study to determine the economic impact to the state of secondary and post-secondary training and education.

Section 10, would require THECB to establish education resource centers to provide information to students regarding attendance at institutions of higher education, including providing assistance in completing the Free Application for Federal Student Aid, and information regarding career and technical education programs and industry certification requirements. The bill stipulates that centers may be located on a middle or high school campus, at a community-based site, or as a mobile center.

Section 10, would also require THECB to establish mobile career centers that visit schools and other locations where students are likely to gather to provide career-planning information. These mobile centers could only be funded by private gifts, grants or donations.

Section 11, would create an adult basic education pilot program administered by the Higher Education Coordinating Board.

Under Section 12 of the bill, the Comptroller of Public Accounts (CPA) would establish and administer the Jobs and Education for Texans (JET) Grant program to provide grants to public junior colleges and public technical institutes, and would establish and administer GR Account—Jobs and Education for Texans (JET) Grant, which could receive legislative appropriations, interest earnings, gifts, grants, and donations from public and private sources for facilitating this program. The bill would authorize the Comptroller to award grants for innovative and successful programs, grants for career and technical education programs, and scholarships for public junior college or public technical institute students.

Expanding the Best Practices Clearinghouse to include career and technology education, under Section 1 of the bill, is estimated to require 1.5 additional FTEs at TEA at a cost of $110,584 in fiscal year 2010 and $102,584 in each subsequent fiscal year inclusive of salary, benefits, and other operating expenses. TEA estimates a $100,000 annual contract cost associated with reviewing the additional practices submitted as a result of the provisions of the bill, and a one-time cost of $150,000 in fiscal year 2012 for the required study.

Assuming that the SBOE would be required to revise 1/3 of the career and technology education TEKS every four years, TEA estimates the annual cost at $539,700 beginning in fiscal year 2011. This estimate assumes review of 75 courses per year by one committee of five people per course. Travel expenses are estimated at $440 per committee member per meeting, and room rental and supplies costs of $10,000 per meeting for 3 meetings per year are assumed. TEA estimates a need for 7 experts to assist the committees in developing the revised TEKS and assumes a $1,500 stipend and $600 in travel costs per expert.

TWC estimates a cost of $100,000 in federal funds in fiscal year 2013 associated with updating an existing database to comply with the provisions of the bill regarding providing a list of certain occupations requiring industry certifications.

Recent data show that approximately 25,000 students earned industry certifications by examination in fiscal year 2007, and that approximately 52 percent of students enrolled in career and technology education programs are also identified as economically disadvantaged. Assuming a 2 percent annual increase in the number of students earning industry certifications by examination, the cost of the expansion of subsidies for industry certification examinations to non-economically disadvantaged students is estimated at $1.33 million in fiscal year 2010, $1.35 million in fiscal year 2011, and increasing to $1.44 million by fiscal year 2014.

TEA estimates the cost of the FSP allotment of $50 per student enrolled in certain career and technology and tech-prep courses and the resulting impact on the calculation of the number of students in weighted daily attendance (WADA) at $11.6 million in fiscal year 2010, $11.4 million in fiscal year 2011, and decreasing to $10.4 million by fiscal year 2014. The decline is due to the declining impact of the allotment on the WADA calculation as the assumed basic allotment in the FSP increases with district property values over time.

It is estimated that the economic impact study would require a cost of $200,000 in each year from fiscal year 2010 to fiscal year 2014, and 2.0 contract FTEs, to contract with a research organization to implement the provisions of the bill.

For purposes of this estimate it is assumed that THECB would provide training to high school counselors or other appropriate school district personnel to provide the services required of the education resource centers. Assuming that one school district employee per high school is trained, it is estimated that 20.0 trainer FTEs and 1.0 program director FTE would be required at THECB at a cost of $1,779,381 in fiscal year 2010 and $1,695,381 in each subsequent fiscal year, inclusive of salary, benefits, and other operting expenses. Assuming that trainees are paid a stipend of $1,000 and that $500 in training materials are supplied per trainee, other costs associated with the training are estimated at $2,566,500 in fiscal year 2010 with on-going training costs of $256,650 in each subsequent fiscal year. It is assumed that each high school would require $1,000 in informational materials to establish the education research center at an estimated cost of $1,711,000 in fiscal year 2010 with on-going costs estimated at $427,000 per year to maintain, replace, and update materials.

The Coordinating Education Coordinating Board has indicated that to establish an adult basic education pilot program for public junior college districts they would need to add 2.25 FTE's (1-program director and 1-program specialist III) to award and monitor and (.25 program director) to collect, analyze and evaluate this pilot program. The estimated cost for personnel for fiscal year 2010 will be $194,778 and $161,450 for fiscal year 2011 and subsequent years. The would also require $20,000 dollars annually for travel expenses related to grant monitoring and compliance visits.

The Higher Education Coordinating Board has estimated the total fiscal impact to fund one ABE pilot project is $1,081,000 for fiscal year 2010 and $1,068,500 for fiscal year 2011 and subsequent years based on a per student cost of $900 per student for fiscal year 2010 and $890 per student for fiscal year 2011 and subsequent years. The program would serve an estimated 1200 students each fiscal year.

For purposes of this fiscal note it is assumed that the legislature would appropriate $12,500,000 per year for the Jobs and Education for Texans Grant program under Section 12 of the bill. Any costs associated with administration of the program would be absorbed within existing resources

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION


May 7, 2009

TO:	Honorable Rob Eissler, Chair, House Committee on Public Education

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

IN RE:	SB1313 by Shapiro (Relating to the quality and accessibility of public school career and technical education programs and to assistance to students concerning postsecondary education and training.), As Engrossed