Honorable Brad Buckley, Chair, House Committee on Public Education
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB2615 by Gates (Relating to the operation by a school district of a vocational education program to provide eligible high school students with vocational and educational training under a plan for the issuance of a high school diploma and the application of certain student-based allotments under the public school finance system.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB2615, As Introduced : a negative impact of ($23,146,719) through the biennium ending August 31, 2025.
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
2024
($11,524,717)
2025
($11,622,002)
2026
($11,557,909)
2027
($11,618,913)
2028
($11,680,451)
All Funds, Five-Year Impact:
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
Probable Savings/(Cost) from Foundation School Fund 193
2024
($703,518)
($10,821,199)
2025
($748,172)
($10,873,830)
2026
($631,073)
($10,926,836)
2027
($638,694)
($10,980,219)
2028
($646,468)
($11,033,983)
Fiscal Analysis
The bill would establish a new vocational education program in schools to provide public education to high school students whose educational needs are better served by tailored vocational education and training, and for whom a P-TECH program is not academically appropriate or would not provide adequate vocational opportunities.
The bill would require each vocational education program to offer programs that would be aligned with math, English and other skills and content adequate for vocational education developed by the State Board of Education (SBOE); designed to allow students to satisfy requirements related to industry-recognized credentials and certificates; and that would serve as an entry point to high-wage and high-growth jobs and industries as determined by the SBOE with the assistance of the Texas Workforce Commission (TWC).
The bill would require the SBOE to establish minimum curriculum requirements and would permit a vocational education program to require completion of additional credits for graduation not included in the minimum curriculum requirements as long as the program did not require successful completion of more than 24 credits.
The bill would establish an informed consent process and would require that a student and their parent/guardian be advised by a school counselor regarding graduating under the foundation high school program or the vocational education program.
The bill would allow a student to receive a reimbursement for the cost paid for one examination in each school year for industry-recognized licenses, credentials, or certificates.
The bill would require the Commissioner to adopt a set of achievement indicators for students enrolled in vocational education programs based upon recommendations from the Texas Workforce Investment Council. The bill would require each school district that would operate a vocational education program to submit to the Commissioner all relevant information the Commissioner would determine necessary to evaluate the program based on the achievement indicators adopted under this bill.
The bill would require the Commissioner to annually select, for each program in operation, a cohort to evaluate the implementation and effectiveness of the program and to annually publish a report on the performance of the program based on the achievement indicators and the evaluation of the cohorts established under the bill.
The bill would allow any district employee who provides services under a district's vocational education program and qualifies for membership in the Teachers Retirement System (TRS) of Texas to be covered under TRS.
The bill would allow a school district operating a vocational education program to partner with private sector businesses to ensure students have opportunities to participate in apprenticeship training programs and other workplace-based education.
The bill would require the SBOE to conduct an annual study on the implementation and effectiveness of vocational education programs and would require the SBOE to submit to the legislature and the legislative oversight committee a report on the results of the study and recommendations for legislative or other action no later than December 31st of each year. The bill would require the Texas Education Agency (TEA) to support the SBOE in conducting the study.
The bill would establish a vocational education legislative oversight committee and would require the committee to meet at least twice a year and receive the report of the annual study on the implementation and effectiveness of vocational education programs and any other information on the implementation and effectiveness of the program, including information on rules relating to the program adopted or proposed for adoption by the SBOE.
The bill would limit the Career and Technology (CTE) allotment paid to a district for each full-time equivalent (FTE) student in average daily attendance (ADA) in a vocational education program to only the first 10 hours of instructional hours for CTE courses not in an approved program of study. The Commissioner would be required to proportionally reduce the amount of entitlement accordingly to an amount that reflects the limitation on the qualified instructional hours per week using a method adopted by the Commissioner.
The bill would also amend TEC, Section 48.106(c) to increase the percentage of funds allocated under section 48.106 that must be used in providing CTE programs to students in grades 7-12 from 55 percent to 65 percent.
The bill would amend the Career, College and Military Readiness (CCMR) Outcomes Bonus to add annual graduates who are enrolled in a vocational education program for the purpose of outcomes bonus. The bill would establish that an annual graduate would demonstrate career readiness if the annual graduate earns an industry-recognized license, credential, or certificate under a vocational education program as a qualifier for a CCMR outcome bonus.
Methodology
TEA assumes there would be costs to the state for the SBOE to adopt Texas Essential Knowledge and Skills (TEKS) for three new courses. TEA assumes that they would need to convene a committee of approximately 7 individuals for each course to attend meetings to develop TEKS for the new courses. Reimbursement of committee members for travel expenses is expected to cost an estimated $40,320 in fiscal year 2024. TEA assumes cost associated with meeting spaces, supplies, and materials would be $5,400.
TEA assumes there would be costs to the state to reimburse students enrolled in a vocational education program for the cost paid by the student for an exam administered under new section 30B.007 that would qualify the student for an industry-recognized license, credential, or certificate. In 2021-22 TEA reimbursed 112,695 industry-based certifications. Because this bill would allow reimbursement for other types of credentials, the agency assumes that the total number of reimbursements would increase by approximately 5 percent, which would result in 5,635 additional reimbursements. The agency assumes that the cost of the reimbursements would be $366,275 in fiscal year 2024, $373,601 in fiscal year 2025, increasing to $396,468 in fiscal year 2028.
TEA assumes there would be costs of approximately $250,000 in fiscal years 2024-28 to develop and publish the required annual report on the performance of the program based on the achievement indicators; for the Sate Board of Education (SBOE) to conduct the annual study on the implementation and effectiveness of vocational education programs; and for TEA to provide any additional requested reports and information to the legislative oversight committee relating to the operation of vocational education programs.
The bill would amend the Career and Technology Education (CTE) Allotment under the Foundation School Program (FSP). TEA assumes that five percent of the approximately 240,000 students who spent an average of five hours per week in a CTE course would increase their contact hours to at least 10 hours per week due to the bill. Under these assumptions, TEA estimates that the bill would generate a cost to the FSP of $7.4 million in fiscal year 2024, $7.5 million in fiscal year 2025, increasing to $7.6 million in fiscal year 2028.
The bill would amend the Career, College and Military Readiness (CCMR) Outcomes Bonus under the FSP. TEA assumes there would be costs related to additional CCMR outcomes bonuses that would be allocated under this section. TEA identified approximately 4,730 students who would qualify for the CCMR outcomes bonus under the bill. Under an assumption that 20 percent of those students would enroll in a vocational education program, TEA assumes approximately 946 students would generate a CCMR outcomes bonus. The agency assumes that this would result in a state cost of approximately $3.4 million annually in fiscal years 2024-2028.
The agency assumes that the total cost to the FSP would be $10.8 million in fiscal year 2024, $10.9 million in fiscal year 2025, increasing to $11.0 million in fiscal year 2028.
According to the analysis of the Teacher Retirement System, duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.
Technology
TEA assumes there would be technology costs associated with implementing the bill.
TEA assumes the cost to develop and implement the requirements in the Texas Student Data System (TSDS) would be $39,627 in fiscal year 2024 and $118,882 in fiscal year 2025.
TEA assumes the cost to develop and implement the requirements in the TREx application would be $1,896 in fiscal year 2024 and $5,689 in fiscal year 2025.
Local Government Impact
TEA assumes there could be a fiscal impact to units of local government as a result of the bill.
TEA assumes there could be costs to districts to establish new vocational education programs. Districts who offer a vocational education program under Chapter 30B would be required to provide instruction that would meet minimum curriculum standards and would comply with all rules and guidelines outlined in the bill. TEA assumes districts would need to track each student's progress toward meeting diploma requirements. In addition, TEA assumes districts would need to report data to TEA related to students' participation in the program; new graduation program type codes; new courses offered in the program; additional industry-recognized licenses, credentials, and certificates that qualify for reimbursement; and new achievement indicators.