LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION May 10, 2013 TO: Honorable Jimmie Don Aycock, Chair, House Committee on Public Education FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1403 by Patrick (Relating to public school teachers.), As Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for SB1403, As Engrossed: a negative impact of ($1,100,000) through the biennium ending August 31, 2015. 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, 83RD LEGISLATIVE REGULAR SESSION May 10, 2013 TO: Honorable Jimmie Don Aycock, Chair, House Committee on Public Education FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1403 by Patrick (Relating to public school teachers.), As Engrossed TO: Honorable Jimmie Don Aycock, Chair, House Committee on Public Education FROM: Ursula Parks, Director, Legislative Budget Board IN RE: SB1403 by Patrick (Relating to public school teachers.), As Engrossed Honorable Jimmie Don Aycock, Chair, House Committee on Public Education Honorable Jimmie Don Aycock, Chair, House Committee on Public Education Ursula Parks, Director, Legislative Budget Board Ursula Parks, Director, Legislative Budget Board SB1403 by Patrick (Relating to public school teachers.), As Engrossed SB1403 by Patrick (Relating to public school teachers.), As Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for SB1403, As Engrossed: a negative impact of ($1,100,000) through the biennium ending August 31, 2015. 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 SB1403, As Engrossed: a negative impact of ($1,100,000) through the biennium ending August 31, 2015. 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 2014 ($800,000) 2015 ($300,000) 2016 ($300,000) 2017 ($300,000) 2018 ($300,000) 2014 ($800,000) 2015 ($300,000) 2016 ($300,000) 2017 ($300,000) 2018 ($300,000) All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 2014 ($800,000) 2015 ($300,000) 2016 ($300,000) 2017 ($300,000) 2018 ($300,000) Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 2014 ($800,000) 2015 ($300,000) 2016 ($300,000) 2017 ($300,000) 2018 ($300,000) 2014 ($800,000) 2015 ($300,000) 2016 ($300,000) 2017 ($300,000) 2018 ($300,000) Fiscal Analysis The bill would stipulate certain requirements for admissions to educator preparation programs including minimum grade point average requirements for previous higher education coursework and minimum required credit hours in the area of certification. The bill would require that the Texas Education Agency (TEA) conduct an annual analysis of the regional cost of living across the state to determine if teacher salaries are comparable to salaries paid in comparable professions. The bill would require that TEA conduct periodic audits of professional development requirements for educators to eliminate conflicting and duplicative provisions among state, local, and federal requirements. The bill would require TEA to produce an annual report on the effectiveness of educator mentoring programs and would establish an advisory committee including members appointed by the Lieutenant Governor and the Speaker of the House to develop guidelines related to teacher induction and mentoring. The bill directs that TEA provide administrative support for the committee. The bill would require TEA, the State Board for Educator Certification (SBEC), and the Texas Higher Education Coordinating Board (THECB) to jointly review standards applicable to educator preparation programs and develop and implement modifications to reflect current teaching standards. The bill would require TEA to conduct a statewide survey of working conditions for public school teachers. The bill would stipulate certain requirements for admissions to educator preparation programs including minimum grade point average requirements for previous higher education coursework and minimum required credit hours in the area of certification. The bill would require that the Texas Education Agency (TEA) conduct an annual analysis of the regional cost of living across the state to determine if teacher salaries are comparable to salaries paid in comparable professions. The bill would require that TEA conduct periodic audits of professional development requirements for educators to eliminate conflicting and duplicative provisions among state, local, and federal requirements. The bill would require TEA to produce an annual report on the effectiveness of educator mentoring programs and would establish an advisory committee including members appointed by the Lieutenant Governor and the Speaker of the House to develop guidelines related to teacher induction and mentoring. The bill directs that TEA provide administrative support for the committee. The bill would require TEA, the State Board for Educator Certification (SBEC), and the Texas Higher Education Coordinating Board (THECB) to jointly review standards applicable to educator preparation programs and develop and implement modifications to reflect current teaching standards. The bill would require TEA to conduct a statewide survey of working conditions for public school teachers. Methodology To the extent that provisions related to admissions requirements for educator preparation programs results in decreased enrollment at institutions of higher education, those institutions would have a decrease in tuition revenue and there could be general revenue savings associated with the formula. TEA estimates a cost of $500,000 in FY2014 and $300,000 in each subsequent year for the annual cost of living analysis required by the bill. TEA estimates a $300,000 cost in FY2014 to contract for the statewide survey of working conditions for public school teachers. To the extent that provisions related to admissions requirements for educator preparation programs results in decreased enrollment at institutions of higher education, those institutions would have a decrease in tuition revenue and there could be general revenue savings associated with the formula. TEA estimates a cost of $500,000 in FY2014 and $300,000 in each subsequent year for the annual cost of living analysis required by the bill. TEA estimates a $300,000 cost in FY2014 to contract for the statewide survey of working conditions for public school teachers. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 323 Teacher Retirement System, 720 The University of Texas System Administration, 752 University of North Texas, 758 Texas State University System, 768 Texas Tech University System Administration, 701 Central Education Agency, 710 Texas A&M University System Administrative and General Offices 323 Teacher Retirement System, 720 The University of Texas System Administration, 752 University of North Texas, 758 Texas State University System, 768 Texas Tech University System Administration, 701 Central Education Agency, 710 Texas A&M University System Administrative and General Offices LBB Staff: UP, GO, JBi, JSc UP, GO, JBi, JSc