| TO: | Honorable Florence Shapiro, Chair, Senate Committee on Education |
| FROM: | John S O'Brien, Director, Legislative Budget Board |
| IN RE: | SB30 by Shapiro (Relating to the state virtual school network.), As Introduced |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2012 | $3,907,557 |
| 2013 | $4,133,332 |
| 2014 | $4,194,216 |
| 2015 | $4,258,145 |
| 2016 | $4,325,270 |
| Fiscal Year | Probable Savings/(Cost) from General Revenue Fund 1 |
Probable Savings/(Cost) from Foundation School Fund 193 |
Change in Number of State Employees from FY 2011 |
|---|---|---|---|
| 2012 | $2,825,178 | $1,082,379 | 1.0 |
| 2013 | $2,931,861 | $1,201,471 | 1.0 |
| 2014 | $2,931,861 | $1,262,355 | 1.0 |
| 2015 | $2,931,861 | $1,326,284 | 1.0 |
| 2016 | $2,931,861 | $1,393,409 | 1.0 |
The bill would entitle school districts and open-enrollment charter schools to formula funding through the Foundation School Program (FSP) for students' enrollment in courses offered through the state virtual school network (VSN) for courses that are successfully completed.
The bill would repeal the state virtual school network allotment in the FSP, including the commissioner's authority to grant allotments for courses that exceed a normal course load.
For purposes of this estimate, it is assumed that school districts are already claiming full attendance and therefore earning full FSP funding for students enrolled in courses through the VSN. As a result, no additional FSP cost would accrue by entitling school districts to FSP formula funding for students' enrollment in courses offered through the state virtual school network (VSN) for courses that are successfully completed. The repeal of the state virtual school network allotment in the FSP would yield a savings estimated at $1,159,704 in fiscal year 2012 and $1,217,689 in fiscal year 2013, assumed to increase by 5 percent annually up to $1,409,627 by fiscal year 2016. Additionally, since the bill repeals the statutory basis for the appropriation supporting allotments for courses in excess of a normal course load, the elimination of that appropriation is estimated to yield a savings of $3,023,680 (this estimated fiscal year 2011 funding level) in fiscal year 2012 and each year thereafter.
TEA estimates a cost of $114,750 in professional services in fiscal year 2012 to modify the Public Education Information Management System (PEIMS) and a cost of $77,325 in professional services in fiscal year 2012 to the modify the FSP System to accommodate the changes made by the bill. Maintenance costs for both systems are estimated at $40,286 in each subsequent fiscal year.
TEA estimates a need for 0.5 FTEs in the State Funding Division and 0.5 FTEs in the School Financial Audits Division to support the program at a cost of $83,752 in fiscal year 2012 and $67,752 in each subsequent year, inclusive of salary, benefits, and other operating expenses.
School districts and open-enrollment charter schools would be required to offer students the opportunity to enroll in electronic courses.
Providers of electronic courses, which can include school districts, would be required to submit courses for review by TEA and could be charged a fee to cover the cost of the review.
School districts and charter schools would be eligible for regular FSP funding on behalf of students successfully completing courses through the VSN, but would no longer be entitled to funding through the state virtual school network allotment. School districts and charter schools would be required to pay providers the cost of providing virtual courses for their students.
| Source Agencies: |
| LBB Staff: | JOB, LXH, JGM, JSp
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