LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION

April 22, 2013

TO:	Honorable Jimmie Don Aycock, Chair, House Committee on Public Education
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	HB2697 by King, Susan (Relating to funding under the Foundation School Program for school district career and technology education courses provided at night or during the summer.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB2697, As Introduced: a negative impact of ($160,812,169) 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	($79,141,166)
2015	($81,671,003)
2016	($84,338,060)
2017	($87,087,430)
2018	($89,054,388)

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from General Revenue Fund 1	Probable Savings/(Cost) from Foundation School Fund 193
2014	($27,520)	($79,113,646)
2015	$0	($81,671,003)
2016	$0	($84,338,060)
2017	$0	($87,087,430)
2018	$0	($89,054,388)

Fiscal Analysis

The bill would amend Section 42.154, Education Code to include the attendance of students in approved night and summer career and technical education (CTE) programs for the purpose of computing weighted state funding under the Foundation School Program.

The bill would take effect September 1, 2013.

Methodology

The Texas Education Agency indicates that there are 1,111,610 students enrolled in CTE courses in fiscal year 2013.  For the purpose of this estimate it is assumed that approximately 5 percent of currently enrolled CTE students would generate attendance equivalent to an additional one-hour CTE course outside the regular school day or school year in an approved night or summer program beginning in fiscal year 2014.  Although CTE enrollment growth has exceeded 3 percent per year in recent years, for the purpose of this estimate participation in approved night and summer CTE programs is assumed to increase at the same 1.7 percent rate of growth that is projected for overall student enrollment for each year after fiscal year 2014.  Based on these assumptions, the cost of including student enrollment in courses described by the bill in the determination of public school entitlement through the Foundation School Program is estimated at $79.1 million in fiscal year 2014 and $81.7 million in fiscal year 2015, increasing to $89.1 million by fiscal year 2018.

Technology

The Texas Education Agency indicates that minor modifications would be required to the Public Education Information Management System (PEIMS) to accommodate reporting of CTE participation for funding purposes. The estimated one-time cost in fiscal year 2014 for such modifications would be $27,520.

Local Government Impact

School districts and charter schools would receive additional revenue associated with the attendance of students enrolled in approved night and summer CTE programs.

Source Agencies:

701 Central Education Agency

LBB Staff:

UP, JBi, JSc, JSp