LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION March 21, 2011 TO: Honorable Rob Eissler, Chair, House Committee on Public Education FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB291 by Jackson, Jim (Relating to requiring a public hearing in the geographical area proposed for an open-enrollment charter school.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB291, As Introduced: a negative impact of ($405,818) through the biennium ending August 31, 2013. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
March 21, 2011
TO: Honorable Rob Eissler, Chair, House Committee on Public Education FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB291 by Jackson, Jim (Relating to requiring a public hearing in the geographical area proposed for an open-enrollment charter school.), As Introduced
TO: Honorable Rob Eissler, Chair, House Committee on Public Education
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: HB291 by Jackson, Jim (Relating to requiring a public hearing in the geographical area proposed for an open-enrollment charter school.), As Introduced
Honorable Rob Eissler, Chair, House Committee on Public Education
Honorable Rob Eissler, Chair, House Committee on Public Education
John S O'Brien, Director, Legislative Budget Board
John S O'Brien, Director, Legislative Budget Board
HB291 by Jackson, Jim (Relating to requiring a public hearing in the geographical area proposed for an open-enrollment charter school.), As Introduced
HB291 by Jackson, Jim (Relating to requiring a public hearing in the geographical area proposed for an open-enrollment charter school.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB291, As Introduced: a negative impact of ($405,818) through the biennium ending August 31, 2013. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for HB291, As Introduced: a negative impact of ($405,818) through the biennium ending August 31, 2013.
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 2012 ($216,909) 2013 ($188,909) 2014 ($188,909) 2015 ($188,909) 2016 ($188,909)
2012 ($216,909)
2013 ($188,909)
2014 ($188,909)
2015 ($188,909)
2016 ($188,909)
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 2011 2012 ($216,909) 2.5 2013 ($188,909) 2.5 2014 ($188,909) 2.5 2015 ($188,909) 2.5 2016 ($188,909) 2.5
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 2011 2012 ($216,909) 2.5 2013 ($188,909) 2.5 2014 ($188,909) 2.5 2015 ($188,909) 2.5 2016 ($188,909) 2.5
2012 ($216,909) 2.5
2013 ($188,909) 2.5
2014 ($188,909) 2.5
2015 ($188,909) 2.5
2016 ($188,909) 2.5
Fiscal Analysis
Section 1 of the bill would require the State Board of Education to hold a public hearing within the geographical area to be served by a proposed open-enrollment charter school for the purpose of determining parental and community support. Section 2 of the bill would require the Texas Education Agency to hold a public hearing in the geographical area in which a charter holder proposes to operate a school as a condition of moving or adding a school campus in a new geographical area. The bill would have fiscal implications for the administrative operations of the Texas Education Agency. Additional personnel and travel expenses would be incurred to conduct the required public hearings in affected geographical areas. Costs for 2.5 additional FTEs plus associated travel expenses to the hearing sites would be estimated to be $216,909 for FY12 and $188,909 each year thereafter.
Section 1 of the bill would require the State Board of Education to hold a public hearing within the geographical area to be served by a proposed open-enrollment charter school for the purpose of determining parental and community support. Section 2 of the bill would require the Texas Education Agency to hold a public hearing in the geographical area in which a charter holder proposes to operate a school as a condition of moving or adding a school campus in a new geographical area.
The bill would have fiscal implications for the administrative operations of the Texas Education Agency. Additional personnel and travel expenses would be incurred to conduct the required public hearings in affected geographical areas. Costs for 2.5 additional FTEs plus associated travel expenses to the hearing sites would be estimated to be $216,909 for FY12 and $188,909 each year thereafter.
Methodology
For the purpose of this estimate, charter applications and expansion activities for 2010 were analyzed to determine the number of public hearings that might be required under the bill. In spring 2010, 33 charter holders requested additions to their geographic boundaries, and in September 2010, the State Board of Education interviewed 13 charter applicants, one of which was requesting to operate campuses in four different geographic areas of the state. Consequently, had the bill's provisions been in effect for 2010, a total of 49 public hearings would have been held across the state. It is assumed for the purpose of this estimate that approximately 50 hearings would be required each year in various portions of the state. The Texas Education Agency estimates incurring additional administrative expenses to comply with the hearings requirements including costs associated with 2.5 additional FTEs and travel expenses to hearings locations. Personnel and general operating expenditures are estimated to be $183,209 in fiscal year 2012 and $155,209 each year thereafter. Slightly higher costs are estimated for fiscal year 2012 due to office set-up expenses. Expenses for travel to the hearing sites are estimated to be approximately $26,700 each year. Costs associated with public notice of hearings are estimated to be approximately $7,000 each year based on an average publication cost of $140 per notice.
For the purpose of this estimate, charter applications and expansion activities for 2010 were analyzed to determine the number of public hearings that might be required under the bill. In spring 2010, 33 charter holders requested additions to their geographic boundaries, and in September 2010, the State Board of Education interviewed 13 charter applicants, one of which was requesting to operate campuses in four different geographic areas of the state. Consequently, had the bill's provisions been in effect for 2010, a total of 49 public hearings would have been held across the state. It is assumed for the purpose of this estimate that approximately 50 hearings would be required each year in various portions of the state.
The Texas Education Agency estimates incurring additional administrative expenses to comply with the hearings requirements including costs associated with 2.5 additional FTEs and travel expenses to hearings locations. Personnel and general operating expenditures are estimated to be $183,209 in fiscal year 2012 and $155,209 each year thereafter. Slightly higher costs are estimated for fiscal year 2012 due to office set-up expenses. Expenses for travel to the hearing sites are estimated to be approximately $26,700 each year. Costs associated with public notice of hearings are estimated to be approximately $7,000 each year based on an average publication cost of $140 per notice.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 701 Central Education Agency
701 Central Education Agency
LBB Staff: JOB, LXH, JGM, JSp, RBl
JOB, LXH, JGM, JSp, RBl