LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82nd LEGISLATURE 1st CALLED SESSION - 2011 June 6, 2011 TO: Honorable Bill Callegari, Chair, House Committee on Government Efficiency & Reform FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB17 by Callegari (Relating to the minimum salary for and minimum service required of certain public school employees.), As Introduced No significant fiscal implication to the State is anticipated. The bill would repeal the existing minimum salary schedule for classroom teachers and full-time counselors, nurses, and librarians. The bill would amend Section 825.405, Government Code to provide for continuing use of the current form of that schedule for the purpose of determining certain school district contributions to the Texas Teacher Retirement System. Given that the existing schedule would continue to govern the calculation and payment of affected local contributions, no significant fiscal implications for the Texas Teacher Retirement System (TRS) are anticipated. Local Government Impact School districts could realize cost savings under the provisions of the bill. To the extent that the bill would allow school districts to reduce salary-related costs, local savings could be realized. The bill would repeal the statutory salary schedule that currently governs minimum compensation for classroom teachers and full-time counselors, nurses, and librarians. In addition, the bill would repeal a provision currently entitling employees subject to the minimum salary schedule a salary that is at least equivalent to the salary they received in 2010-11 for the duration of their employment with the district in which they were employed during 2010-11. School districts would be prohibited from paying any classroom teacher or full-time counselor, librarian, or nurse an annual salary that is less than $27,320. The bill would require school districts that make a widespread reduction in classroom teacher salaries based primarily on district financial conditions rather than on teacher performance to reduce the salaries of counselors, librarians, nurses, school-level administrators, and district-level administrators by the same percentage that teacher salaries have been reduced. Source Agencies: LBB Staff: JOB, KM, JGM, JSp LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82nd LEGISLATURE 1st CALLED SESSION - 2011 June 6, 2011 TO: Honorable Bill Callegari, Chair, House Committee on Government Efficiency & Reform FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB17 by Callegari (Relating to the minimum salary for and minimum service required of certain public school employees.), As Introduced TO: Honorable Bill Callegari, Chair, House Committee on Government Efficiency & Reform FROM: John S O'Brien, Director, Legislative Budget Board IN RE: HB17 by Callegari (Relating to the minimum salary for and minimum service required of certain public school employees.), As Introduced Honorable Bill Callegari, Chair, House Committee on Government Efficiency & Reform Honorable Bill Callegari, Chair, House Committee on Government Efficiency & Reform John S O'Brien, Director, Legislative Budget Board John S O'Brien, Director, Legislative Budget Board HB17 by Callegari (Relating to the minimum salary for and minimum service required of certain public school employees.), As Introduced HB17 by Callegari (Relating to the minimum salary for and minimum service required of certain public school employees.), As Introduced No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would repeal the existing minimum salary schedule for classroom teachers and full-time counselors, nurses, and librarians. The bill would amend Section 825.405, Government Code to provide for continuing use of the current form of that schedule for the purpose of determining certain school district contributions to the Texas Teacher Retirement System. Given that the existing schedule would continue to govern the calculation and payment of affected local contributions, no significant fiscal implications for the Texas Teacher Retirement System (TRS) are anticipated. Local Government Impact School districts could realize cost savings under the provisions of the bill. To the extent that the bill would allow school districts to reduce salary-related costs, local savings could be realized. The bill would repeal the statutory salary schedule that currently governs minimum compensation for classroom teachers and full-time counselors, nurses, and librarians. In addition, the bill would repeal a provision currently entitling employees subject to the minimum salary schedule a salary that is at least equivalent to the salary they received in 2010-11 for the duration of their employment with the district in which they were employed during 2010-11. School districts would be prohibited from paying any classroom teacher or full-time counselor, librarian, or nurse an annual salary that is less than $27,320. The bill would require school districts that make a widespread reduction in classroom teacher salaries based primarily on district financial conditions rather than on teacher performance to reduce the salaries of counselors, librarians, nurses, school-level administrators, and district-level administrators by the same percentage that teacher salaries have been reduced. School districts could realize cost savings under the provisions of the bill. To the extent that the bill would allow school districts to reduce salary-related costs, local savings could be realized. The bill would repeal the statutory salary schedule that currently governs minimum compensation for classroom teachers and full-time counselors, nurses, and librarians. In addition, the bill would repeal a provision currently entitling employees subject to the minimum salary schedule a salary that is at least equivalent to the salary they received in 2010-11 for the duration of their employment with the district in which they were employed during 2010-11. School districts would be prohibited from paying any classroom teacher or full-time counselor, librarian, or nurse an annual salary that is less than $27,320. The bill would require school districts that make a widespread reduction in classroom teacher salaries based primarily on district financial conditions rather than on teacher performance to reduce the salaries of counselors, librarians, nurses, school-level administrators, and district-level administrators by the same percentage that teacher salaries have been reduced. Source Agencies: LBB Staff: JOB, KM, JGM, JSp JOB, KM, JGM, JSp