LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION April 28, 2021 TO: Honorable Harold V. Dutton, Jr., Chair, House Committee on Public Education FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3204 by Dutton (relating to the methods to achieve a college, career, or military outcomes bonus under the Foundation School Program.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for HB3204, Committee Report 1st House, Substituted : a negative impact of ($7,555,436) through the biennium ending August 31, 2023. 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 toGeneral Revenue Related Funds2022($3,756,659)2023($3,798,777)2024($3,735,600)2025($3,735,600)2026($3,735,600)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromFoundation School Fund1932022($21,059)($3,735,600)2023($63,177)($3,735,600)2024$0($3,735,600)2025$0($3,735,600)2026$0($3,735,600) Fiscal AnalysisThe bill's provisions would allow for a high school graduate to qualify for the College Career Military Readiness (CCMR) outcomes bonus by reporting their employment at or above a minimum salary level, as established by commissioner rule. Based on commissioner rule, schools could award qualifying graduates a portion of the bonus.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION
April 28, 2021
TO: Honorable Harold V. Dutton, Jr., Chair, House Committee on Public Education FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3204 by Dutton (relating to the methods to achieve a college, career, or military outcomes bonus under the Foundation School Program.), Committee Report 1st House, Substituted
TO: Honorable Harold V. Dutton, Jr., Chair, House Committee on Public Education
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB3204 by Dutton (relating to the methods to achieve a college, career, or military outcomes bonus under the Foundation School Program.), Committee Report 1st House, Substituted
Honorable Harold V. Dutton, Jr., Chair, House Committee on Public Education
Honorable Harold V. Dutton, Jr., Chair, House Committee on Public Education
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB3204 by Dutton (relating to the methods to achieve a college, career, or military outcomes bonus under the Foundation School Program.), Committee Report 1st House, Substituted
HB3204 by Dutton (relating to the methods to achieve a college, career, or military outcomes bonus under the Foundation School Program.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB3204, Committee Report 1st House, Substituted : a negative impact of ($7,555,436) through the biennium ending August 31, 2023. 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 HB3204, Committee Report 1st House, Substituted : a negative impact of ($7,555,436) through the biennium ending August 31, 2023. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
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:
2022 ($3,756,659)
2023 ($3,798,777)
2024 ($3,735,600)
2025 ($3,735,600)
2026 ($3,735,600)
All Funds, Five-Year Impact:
2022 ($21,059) ($3,735,600)
2023 ($63,177) ($3,735,600)
2024 $0 ($3,735,600)
2025 $0 ($3,735,600)
2026 $0 ($3,735,600)
Fiscal Analysis
The bill's provisions would allow for a high school graduate to qualify for the College Career Military Readiness (CCMR) outcomes bonus by reporting their employment at or above a minimum salary level, as established by commissioner rule. Based on commissioner rule, schools could award qualifying graduates a portion of the bonus.
Methodology
TEA estimates 849 additional graduates would qualify for a CCMR outcomes bonus in a given year, assuming a minimum salary level at or above 150% of the Texas median wage. This would result in an annual $4,400 per graduate bonus or $3,735,600 statewide beginning in FY 2022.TEA's cost estimate to implement data collection related to the salary and employment status of graduates to be $21,059 FY 2022 and $63,177 in FY 2023.
Technology
TEA would need to collect and report on additional data related to the salary and employment status of graduates.
Local Government Impact
The bill's provisions would require districts to gather and report data on the salary and employment status of graduates. School districts and charter schools may generate additional funding if more graduates meet career readiness indicators. Additionally, schools would need to plan for providing a portion of the CCMR Outcome bonus to graduates who meet requirements.
Source Agencies: b > td > 701 Texas Education Agency
701 Texas Education Agency
LBB Staff: b > td > JMc, SL, AH
JMc, SL, AH