| TO: | Honorable Dan Patrick, Chair, Senate Committee on Education |
| FROM: | Ursula Parks, Director, Legislative Budget Board |
| IN RE: | SB3 by Patrick (relating to public high school graduation, including curriculum and assessment requirements for graduation and funding in support of certain curriculum authorized for graduation.), Committee Report 1st House, Substituted |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2014 | ($92,600,000) |
| 2015 | ($98,000,000) |
| 2016 | ($99,826,698) |
| 2017 | ($104,526,698) |
| 2018 | ($107,126,698) |
| Fiscal Year | Probable Savings/(Cost) from General Revenue Fund 1 |
Probable Revenue Gain from Tuition and Fees 997 |
Probable Savings/(Cost) from Foundation School Fund 193 |
|---|---|---|---|
| 2014 | $0 | $0 | ($92,600,000) |
| 2015 | $0 | $1,722,052 | ($98,000,000) |
| 2016 | ($1,026,698) | $1,722,052 | ($98,800,000) |
| 2017 | ($1,026,698) | $1,722,052 | ($103,500,000) |
| 2018 | ($1,026,698) | $1,722,052 | ($106,100,000) |
The bill would eliminate the requirement that an end-of-course assessment developed under Section 28.014 of the Education Code shall account for 15 percent of the student's final grade for the course.
The bill would eliminate the Minimum, Recommended, and Advanced High School graduation programs, and would create the Foundation High School Program, which would be similar to the current Minimum High School Program. The bill would create endorsements on a student’s diploma and transcript if the student completes certain courses. The endorsements would include business and industry; academic achievement in arts and humanities; academic achievement in science, technology, engineering, and math (STEM); and distinguished achievement.
The bill would require each student to complete a career explorations course in grade 7 or 8.
The bill would require the Commissioner of Education to adopt a transition plan to implement the bill beginning with the 2013-14 school year. The bill would allow any student who entered ninth grade before the 2013-14 school year to choose whether to elect the Foundation High School Program, or the previous system of Minimum, Recommended, and Advanced High School Programs.
The bill would allow STEM courses to be substituted for other math and science courses required for graduation under the Foundation High School Program.
The bill would require the Commissioner of Education to determine the performance level for “distinguished performance” on assessments.
The bill would require students to take an end-of-course (EOC) assessment only for a course in which they are enrolled.
The bill would eliminate the requirement that a student achieve a minimum cumulative score on EOCs to graduate.
The bill would amend Section 42.154, Education Code to expand Foundation School Program weighted funding for career and technology education courses, currently earned by students in grades 9-12, to include students in grade 8, and students in grade 7 or 8 enrolled in a career explorations course beginning with the 2013-14 school year.
The bill would apply beginning with the 2013-14 school year.
Under current law, the default graduation plan is the Recommended High School Program, which requires four credits each in English language arts, mathematics, science, and social studies, among other requirements. A student graduating under the Recommended High School Program is also required to pass 15 EOC assessments, including three EOC assessments each in reading, writing, mathematics, science, and social studies. The bill would change the default graduation plan to the Foundation High School Program and would require four credits of English language arts, and three credits each of mathematics, science, and social studies, among other requirements.
This estimate assumes that career and technology education (CTE) participation by 8th grade students would be similar to participation by 9th grade students, with about 20 percent enrolled in at least one CTE course at full implementation. The estimate assumes that participation by 8th grade students would phase-in over several years as schools expand course offerings and adjust scheduling options to accommodate increased grade 8 CTE enrollment. Participation in FY14 is assumed at 10 percent, increasing incrementally each year until reaching 20 percent in FY18. Under these assumptions, the estimated state cost to the Foundation School Program would be $15.9 million in FY14 and $20.2 million in FY15, increasing incrementally to $30.7 million by FY18 when full implementation is attained.
It is assumed that 50 percent of 7th grade students and 50 percent of 8th grade students would enroll in a career explorations course each year to meet the requirements of the bill. The additional cost to the Foundation School Program was modeled assuming the course would be a one-hour, one-semester course. Under these assumptions, the estimated state cost to the Foundation School Program would be $76.7 million in FY14 and $77.8 million in FY15, increasing each year due to student population growth in school districts and charter schools.
This analysis assumes that the Commissioner of Education would equate distinguished performance on assessments with the current advanced academic performance.
There could be additional savings if the State Board of Education allowed certain STEM courses to be substituted for mathematics and science courses for which an EOC assessment is currently required, at a savings of $10 per exam. The Higher Education Coordinating Board has estimated that based on the difference in college readiness between the Recommended High School Program and the Foundation High School Program without endorsements, an additional 2,652 students would need additional developmental education courses. They have estimated that of this amount, 2,194 would attend community colleges and 458 would attend four-year universities. They estimate that this would result in an additional $0.8 million in general revenue formula funding and $1.2 million in additional tuition and fees at community colleges and $0.2 million in general revenue formula funding and $0.6 million in additional tuition and fees at four year universities. The total general revenue cost for community colleges and four year institutions would be $1.0 million per year. Because formula funding is based on a historical base period, the general revenue impact would not be realized until fiscal year 2016. The additional tuition and fees would be $1.7 million per year starting in fiscal year 2015.
Implementing the provisions of this bill, a school district may incur additional costs to develop personal graduation plans for all students enrolled in junior high, middle, or high school. A school district might choose to adjust the courses available to align with the requirements of the Foundation High School Program. Any costs incurred by school districts in implementing these provisions could vary widely.
School districts enrolling eighth grade students in CTE courses and seventh and eighth grade students in a career explorations course would realize additional revenue under the Foundation School Program.
| Source Agencies: | 710 Texas A&M University System Administrative and General Offices, 701 Central Education Agency, 720 The University of Texas System Administration, 781 Higher Education Coordinating Board
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| LBB Staff: | UP, JBi, JSc, AH, GO, JSp
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