Honorable Larry Taylor, Chair, Senate Committee on Education
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
HB1051 by VanDeaver (Relating to an adult education program provided under an adult high school diploma and industry certification charter school program and reporting requirements regarding certain students.), Committee Report 2nd House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB1051, Committee Report 2nd House, Substituted: a negative impact of ($2,431,081) through the biennium ending August 31, 2021.
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
2020
($927,870)
2021
($1,503,211)
2022
($2,151,954)
2023
($3,056,150)
2024
($4,246,366)
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
Probable Savings/(Cost) from Foundation School Fund 193
Change in Number of State Employees from FY 2019
2020
($528,287)
($399,583)
1.0
2021
($831,447)
($671,764)
1.0
2022
($1,129,584)
($1,022,370)
1.0
2023
($1,581,682)
($1,474,468)
1.0
2024
($2,176,790)
($2,069,576)
1.0
Fiscal Analysis
The bill would amend the Adult High School Diploma and Industry Certification Charter School Program to expand the program from a pilot program to a permanent program.
The bill would require each school district and open-enrollment charter school to annually report through the Public Education Information Management System (PEIMS) information regarding the number of students who are enrolled in a high school equivalency program, a dropout recovery school, or an adult education program provided under a high school diploma and industry certification charter school.
Methodology
Based on information provided by the Texas Education Agency (TEA), it is assumed that the number of new students who would participate in the Adult High School Diploma and Industry Certification Charter School Program would as a result of this bill, due to expansion of this program from a pilot program to a permanent program be 195 in fiscal year 2020, and would increase by 30 percent per year through fiscal year 2024. For the purpose of this analysis, it is assumed that half of the new students would be under 26 years of age, and thus, funded through the Foundation School Program, and half of all new students would be over 26 years of age, and thus, funded through a grant. The estimated cost to the FSP would be $0.4 million in fiscal year 2020, $0.7 million in fiscal year 2021, increasing to $2.1 million in fiscal year 2024. The estimated cost for the grant would be $0.4 million in fiscal year 2020, $0.7 million in fiscal year 2021, increasing to $2.1 million in fiscal year 2024.
Based on information provided by TEA, it is assumed that one full-time equivalent (FTE) would be required to administer the program as it grows from a pilot program to a permanent program at an estimated cost of $111,214 in fiscal year 2020 and $107,214 in subsequent years for salary, benefits, and other operating expenses.
Technology
The Texas Education Agency reports that the cost to implement the requirement in PEIMS would cost $17,490 in fiscal year 2020 and $52,469 in fiscal year 2021.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.