Honorable Dan Huberty, Chair, House Committee on Public Education
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB2730 by Lucio III (Relating to the authority of the commissioner of education to create career and technical credentials and certificates that may be earned through a career and technology education program and to a study to identify unmet needs in career and technology education programs.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB2730, As Introduced: a negative impact of ($525,000) through the biennium ending August 31, 2019.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2018
($250,000)
2019
($275,000)
2020
($275,000)
2021
$0
2022
$0
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
2018
($250,000)
2019
($275,000)
2020
($275,000)
2021
$0
2022
$0
Fiscal Analysis
The bill would amend the Education Code to allow the Commissioner to create career and technical credentials or certificates that may be earned by a public high school student through a career and technology education program. The bill would require the Commissioner to create at least one credential or certificate in information technology by September 1, 2020 and would specify the requirements of those credentials or certificates. The bill would require the Texas Education Agency (TEA) to conduct a study on unmet needs in career and technology programs offered to high school students; specify the requirements of the study; and require a report to be delivered on the study by September 1, 2019.
The bill would take effect immediately if passed with necessary voting margins, or September 1, 2017.
Methodology
The bill would require TEA to conduct a study of existing career and technology certifications and identify any gaps between what is offered to high school students and what is need by the workforce. TEA estimates the agency would contract with a research and evaluation firm for the study for a one-time cost of $250,000 in fiscal year 2018.
The bill would also require the Commissioner to create at least one credential or certificate in information technology by September 1, 2020 based on the results of the required study. According to TEA, the agency would create a certificate in fiscal year 2019 and 2020 based on the expiration dates established in the bill. TEA estimates the development of a certificate would cost $275,000 in fiscal year 2019 and 2020 for initial development of the content. The agency assumes it would then host the course and assessment online.
This analysis assumes the agency would incur some administrative costs related to working with career cluster industry stakeholders to identify the skills and knowledge to create one of more new certifications or credentials; however, these costs could be absorbed within the agency's existing resources.
Local Government Impact
School districts and open-enrollment charter school may incur costs associated with allowing students to pursue the new certifications or credentials developed. These costs would vary based on the equipment and staffing levels available at participating districts and schools.