LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION
 
May 14, 2017

TO:
Honorable Dan Huberty, Chair, House Committee on Public Education
 
FROM:
Ursula Parks, Director, Legislative Budget Board
 
IN RE:
SB1839 by Hughes (Relating to the preparation, certification, and classification of public school educators.), As Engrossed



Estimated Two-year Net Impact to General Revenue Related Funds for SB1839, As Engrossed: a negative impact of ($595,888) through the biennium ending August 31, 2019, assuming that the Legislature makes an appropriation for the implementation of the program. The agency is not required to implement the program in the absence of an appropriation.

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 ($297,944)
2019 ($297,944)
2020 $0
2021 $0
2022 $0




Fiscal Year Probable Savings/(Cost) from
General Revenue Fund
1
Probable Revenue (Loss) from
General Revenue Fund
1
2018 ($297,944) $0
2019 ($297,944) $0
2020 $0 $0
2021 $0 $0
2022 $0 $0

Fiscal Analysis

The bill would require TEA to collect and provide data relating to improving the design and effectiveness of educator preparation programs (EPPs).  The bill provides the commissioner with the authority to exempt examination requirements for individuals certified in other states working to gain a Texas educator certification.  The bill creates an early childhood certification.  The bill would also repeal references to highly qualified teachers under the No Child Left Behind Act.

The bill would require the Commissioner of Education to implement Educator Preparation Program effectiveness provisions only if the Legislature appropriates funds specifically for that purpose. If the Legislature does not appropriate funds specifically for that purpose, the Commissioner may, but would not be required to, implement those provisions using other appropriations available for that purpose.

The bill would take effect September 1, 2017.

Methodology

TEA estimates that the initial development and implementation effort to support automating acceptable comparable tests from other states would result in a cost of $290,134 in fiscal year 2018 and $290,134 in fiscal year 2019.
 
The bill would allow the commissioner to establish exceptions to the examination requirements for for out of state/out of country candidates to receive a Texas certification by taking the Texas educator certification exams. Approximately $154,000 ($11 x 14,000 tests) of revenue is generated annually from all out of state teachers taking Texas exams, and any change in rule that results in fewer examinations would decrease SBEC revenue. However, the decrease in revenue resulting from commissioner exemptions by rule are not expected to have a significant fiscal impact. 

The Texas Education Agency estimates the cost associated with the modification of the Educator Certification Online System for the new early childhood certification to be $7,780 in fiscal year 2018 and $7,780 in fiscal year 2019.

The bill could result in some ongoing costs to TEA to maintain the systems developed and implemented by the bill, but it is anticipated that these ongoing responsibilities can be absorbed by existing staff and resources.

Technology

The bill would require TEA to develop new applications to support the Educator Certification Online Systems used by EPPs.

Local Government Impact

Local government EPPs that want to offer the new EC-3 certificate may need to hire additional staff, prepare an application to offer the new certificate, modify curriculum and teach additional courses to meet the new requirements.  The cost to local government EPPs to apply for approval to offer an EC-3 certificate is $500.


Source Agencies:
701 Texas Education Agency
LBB Staff:
UP, SL, THo, AM, RC, AW