LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION April 27, 2015 TO: Honorable Larry Taylor, Chair, Senate Committee on Education FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1302 by Menéndez (Relating to limiting certain state-required assessment instruments administered to public school students in certain grades to assessments required by federal law.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB1302, As Introduced: a positive impact of $18,300,000 through the biennium ending August 31, 2017. LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION April 27, 2015 TO: Honorable Larry Taylor, Chair, Senate Committee on Education FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1302 by Menéndez (Relating to limiting certain state-required assessment instruments administered to public school students in certain grades to assessments required by federal law.), As Introduced TO: Honorable Larry Taylor, Chair, Senate Committee on Education FROM: Ursula Parks, Director, Legislative Budget Board IN RE: SB1302 by Menéndez (Relating to limiting certain state-required assessment instruments administered to public school students in certain grades to assessments required by federal law.), As Introduced Honorable Larry Taylor, Chair, Senate Committee on Education Honorable Larry Taylor, Chair, Senate Committee on Education Ursula Parks, Director, Legislative Budget Board Ursula Parks, Director, Legislative Budget Board SB1302 by Menéndez (Relating to limiting certain state-required assessment instruments administered to public school students in certain grades to assessments required by federal law.), As Introduced SB1302 by Menéndez (Relating to limiting certain state-required assessment instruments administered to public school students in certain grades to assessments required by federal law.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB1302, As Introduced: a positive impact of $18,300,000 through the biennium ending August 31, 2017. Estimated Two-year Net Impact to General Revenue Related Funds for SB1302, As Introduced: a positive impact of $18,300,000 through the biennium ending August 31, 2017. General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2016 $9,150,000 2017 $9,150,000 2018 $9,150,000 2019 $9,150,000 2020 $9,150,000 2016 $9,150,000 2017 $9,150,000 2018 $9,150,000 2019 $9,150,000 2020 $9,150,000 All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 2016 $9,150,000 2017 $9,150,000 2018 $9,150,000 2019 $9,150,000 2020 $9,150,000 Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 2016 $9,150,000 2017 $9,150,000 2018 $9,150,000 2019 $9,150,000 2020 $9,150,000 2016 $9,150,000 2017 $9,150,000 2018 $9,150,000 2019 $9,150,000 2020 $9,150,000 Fiscal Analysis The bill would require the Texas Education Agency (TEA) to develop appropriate assessment instruments only for subjects and grades for which an assessment is required by federal law. The bill would take effect September 1, 2015, or immediately if passed with the necessary voting margins, and apply beginning in school year 2015-16. Methodology Developing assessment instruments only for subjects and grades for which an assessment is required by federal law would reduce the number of assessments and result in savings of approximately $9.2 million annually, based on the costs of the current state assessment contract which expires August 31, 2015.Based on information provided by TEA, the grade 4 and 7 writing assessment and grade 8 social studies assessment are not required by federal law and would be eliminated. According to TEA, the estimated savings of eliminating the writing assessments would be $4.2 million per fiscal year for grade 4 and $3.7 million per fiscal year for the grade 7. The estimated savings of eliminating the grade eight social studies assessment would be $1.25 million per fiscal year.This analysis assumes savings based on the per assessment costs of the current state assessmentcontract. To the extent that assessment costs change with a new contract, savings may vary. Local Government Impact School districts would experience varying savings from administering a reduced number of assessments. Source Agencies: 701 Central Education Agency 701 Central Education Agency LBB Staff: UP, JBi, AM, AW UP, JBi, AM, AW