83(R) HB 2201 - Introduced version

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION


April 16, 2013

TO:	Honorable John Davis, Chair, House Committee on Economic & Small Business Development

FROM:	Ursula Parks, Director, Legislative Budget Board

IN RE:	HB2201 by Farney (Relating to increasing the courses offered in the career and technology education curriculum.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB2201, As Introduced: a negative impact of ($60,277,495) through the biennium ending August 31, 2015.

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
2014	($1,151,825)
2015	($59,125,670)
2016	($75,152,459)
2017	($92,725,813)
2018	($95,043,242)

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from General Revenue Fund 1	Probable Savings/(Cost) from Foundation School Fund 193
2014	($1,151,825)	$0
2015	$0	($59,125,670)
2016	$0	($75,152,459)
2017	$0	($92,725,813)
2018	$0	($95,043,242)

The bill would require the State Board of Education to increase the number of approved career and technology education courses that are offered by January 1, 2017 in a manner that doubles the number of courses offered on September 1, 2013. The Commissioner of Education would be required to review the progress of career and technology course expansion and report on that progress to the governor and legislative leadership by February 1, 2017. The report would be required to include a detailed description of new courses.

The bill would take effect September 1, 2013, and the provisions would expire September 1, 2017.

Students enrolled in career and techology education (CTE) courses generate weighted entitlement under the Foundation School Program. It is assumed that offering additional CTE courses would lead to additional student enrollment in such courses. For the purpose of this estimate, it is assumed that projected CTE participation would increase by 10% beginning the first year after new courses are introduced, increasing to 15% above current projections as districts fully incorporate the expanded course list into local scheduling. Assuming that new courses would be adopted primarily in fiscal year 2014, Foundation School Program costs associated with CTE course expansion would be incurred beginning in fiscal year 2015 with full implementation assumed by fiscal year 2017.

The Texas Education Agency indicates that the bill would require adoption of 194 new CTE courses and estimates that work associated with the course adoptions would be completed within fiscal year 2014. Costs associated with course adoption include convening writing teams composed of 10 individuals for each of the 16 CTE career clusters. It is assumed that there would be five meetings of the combined writing teams at a total cost of $610,700, consisting of $122,140 per meeting for travel expenses, room rentals, and materials. The TEA further estimates that 450 instructional products would need to be approved for the new CTE courses. Using a total of 585 reviewers for this purpose, at a cost of $925 per reviewer for travel expenses, room rental, and materials, the estimated cost to the state for this activity would be $541,125 in fiscal year 2014.

Local Government Impact

School districts and open enrollment charter schools with increased student enrollment in CTE courses would realize additional entitlement under the Foundation School Program.