LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION

April 29, 2025

TO:	Honorable Giovanni Capriglione, Chair, House Committee on Delivery of Government Efficiency
FROM:	Jerry McGinty, Director, Legislative Budget Board
IN RE:	HB5571 by Rodríguez Ramos (Relating to the review, audit, and oversight of the Texas Education Agency's administration of open-enrollment charter schools by the Sunset Advisory Commission.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB5571, As Introduced: a negative impact of ($1,452,604) through the biennium ending August 31, 2027.

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
2026	($743,045)
2027	($709,559)
2028	($709,559)
2029	($713,045)
2030	($709,559)

All Funds, Five-Year Impact:

Fiscal Year	Probable (Cost) from General Revenue Fund 1	Change in Number of State Employees from FY 2025
2026	($743,045)	6.0
2027	($709,559)	6.0
2028	($709,559)	6.0
2029	($713,045)	6.0
2030	($709,559)	6.0

Fiscal Analysis

The bill would require the Sunset Commission to conduct a comprehensive forensic and performance audit of all Texas Education Agency (TEA) institutional functions, programs, contracts, grants, and administration related to open-enrollment charter schools. Sunset would complete the audit by September 1, 2026, and repeat every three years.

The bill would require Sunset to provide the audit report to the Speaker of the House, Lieutenant Governor, House Appropriations Committee, Senate Finance Committee, and the House Delivery of Government Efficiency Committee, as well as publish on their website within 45 days of completion. If the audit identifies fiscal mismanagement, waste, fraud, or noncompliance with state law, the bill would require TEA to develop and implement a corrective action plan within 90 days and submit progress reports to Sunset and the Legislative Budget Board every six months until the deficiencies are resolved.

Methodology

Based on information provided by the Sunset Commission, this analysis assumes six additional staff would be required to implement the provisions of the bill at a cost of $743,045 in fiscal year 2026 and $709,559 in fiscal year 2027. This staff includes three auditors to perform the forensic auditing, two policy analysts to conduct additional review work, and one data analyst to assist with methodology and data visualizations. Fiscal year 2026 includes $30,000 for one-time operating costs related to the implementation of the bill as well as $3,486 for audit related travel.

It is assumed for TEA that any costs associated with the bill could be absorbed using existing resources.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

116 Sunset Advisory Commission, 701 Texas Education Agency

LBB Staff:

JMc, RStu, CMA, MMF, NV