LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION

April 11, 2011

TO:	Honorable Rob Eissler, Chair, House Committee on Public Education
FROM:	John S O'Brien, Director, Legislative Budget Board
IN RE:	HB1054 by Patrick, Diane (Relating to continuing education requirements for educators.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB1054, As Introduced: a negative impact of ($1,524,898) through the biennium ending August 31, 2013.

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
2012	($798,449)
2013	($726,449)
2014	($726,449)
2015	($726,449)
2016	($726,449)

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from General Revenue Fund 1	Probable Savings/(Cost) from Certif & Assessment Fees 751	Probable Revenue Gain from Certif & Assessment Fees 751	Change in Number of State Employees from FY 2011
2012	($798,449)	($637,580)	$637,580	9.0
2013	($726,449)	($819,216)	$819,216	9.0
2014	($726,449)	($146,016)	$146,016	9.0
2015	($726,449)	($146,016)	$146,016	9.0
2016	($726,449)	($146,016)	$146,016	9.0

Fiscal Analysis

The Texas Education Agency interprets that the bill would require the development and implementation of a campus-level Performance-Based Monitoring Analysis System (PBMAS) indicator which includes continuing education requirements for an educator who failed to meet a PBMAS indicator standard.  Currently, PBMAS performance data is only reported at the district level and not at the campus level.

Methodology

It is estimated that provisions of the bill related to the development of a campus-level PBMAS indicator would require 9.0 FTEs at the TEA at a cost of $798,449 in fiscal year 2012 and $726,449 in each subsequent fiscal year, inclusive of salary, benefits, and other operating expense.

The cost of modifying the educator certification system is estimated at $626,080  in professional fees for fiscal year 2012 and $673,200 in fiscal year 2013. An additional $11,500 would be required for software licenses in 2012 and contract costs to the Department of Information Resources contract are estimated at $146,016 annually beginning in fiscal years 2013 through 2016.  Technology costs would be supported by certification fee revenue.

Technology

The cost of modifying the educator certification system is estimated at $626,080  in professional fees for fiscal year 2012 and $673,200 in fiscal year 2013. An additional $11,500 would be required for software licenses in 2012 and contract costs to the Department of Information Resources contract are estimated at $146,016 annually beginning in fiscal years 2013 through 2016. Technology costs would be supported by certification fee revenue.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Some school districts may have costs associated with providing professional development to meet the training requirements of the bill.

Source Agencies:

701 Central Education Agency

LBB Staff:

JOB, LXH, JGM, JW