Honorable Larry Taylor, Chair, Senate Committee on Education
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SB1527 by Perry (Relating to measures to assist small and rural school districts in implementing a collegiate model and expanding broadband access, including the establishment of the Rural Schools and Communities Technical Assistance Center and a grant program.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1527, As Introduced : a negative impact of ($4,216,702) through the biennium ending August 31, 2023.
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
2022
($1,210,351)
2023
($3,006,351)
2024
($4,806,351)
2025
($4,806,351)
2026
($4,806,351)
All Funds, Five-Year Impact:
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
Change in Number of State Employees from FY 2021
2022
($1,210,351)
1.0
2023
($3,006,351)
1.0
2024
($4,806,351)
1.0
2025
($4,806,351)
1.0
2026
($4,806,351)
1.0
Fiscal Analysis
The bill would establish the Rural Schools and Communities Technical Assistance Center. This organization would assist small and rural school districts with the implementation of the Collegiate Edu-Nation P-20 System Model for 21st Century School Transformation and facilitate the expansion of broadband development in rural communities. Under the bill, the commissioner of education would select a nonprofit organization to serve as the center.
The bill would also establish a grant program to award funds to rural or small school districts to implement a "collegiate model" in those districts. Within two years of receiving a collegiate model grant, a school district would have to have implemented one or more educational programs designated in the bill and demonstrated progress toward certain benchmarks.
Methodology
The Texas Education Agency (TEA) estimates a $500,000 cost per fiscal year to contract with an organization that will serve as the Rural Schools and Communities Technical Assistance Center. With respect to the grant program, TEA projects that the agency would award six planning grants in the amount of $100,000 each in fiscal year 2022 for a total of $600,000; six planning grants in the amount of $100,000 each and six implementation grants in the amount of $300,000 each in fiscal year 2023 for a total of $2,400,000; and six planning grants in the amount of $100,000 each and 12 implementation grants in the amount of $300,000 each in fiscal year 2024 for a total of $4,200,000. The agency projects that that the cost to continue to award grants in subsequent school years would be $4,200,000. TEA anticipates that the program would require one Grant Coordinator IV to administer the program. Salary, benefits, and other costs associated with this position would total $110,351 in fiscal year 2022 and $106,351 in subsequent years.
Local Government Impact
According to TEA, school districts receiving funds under the grant program would be awarded funds but could see costs beyond the amount provided through the grants. However, participation in the grant program would be discretionary and application-based.