LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION May 17, 2023 TO: Honorable Brandon Creighton, Chair, Senate Committee on Education FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB4358 by Allison (Relating to including digital teaching in the micro-credential certification program for public school educator continuing education.), As Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for HB4358, As Engrossed : a negative impact of ($999,344) through the biennium ending August 31, 2025. 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 Funds2024($783,879)2025($215,465)2026$02027$02028$0All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromCertif & Assessment Fees751 Probable Revenue Gain/(Loss) fromCertif & Assessment Fees751 Change in Number of State Employees from FY 20232024($783,879)$02.02025($215,465)$02.02026$0($215,465)$215,4652.02027$0($215,465)$215,4652.02028$0($215,465)$215,4652.0 Fiscal AnalysisThe bill would require the State Board for Educator Certification (SBEC) to propose rules establishing a process for educators to receive micro-credentials in digital teaching. The bill would require SBEC to engage relevant stakeholders in the development of micro-credentials related to digital teaching. LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION May 17, 2023 TO: Honorable Brandon Creighton, Chair, Senate Committee on Education FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB4358 by Allison (Relating to including digital teaching in the micro-credential certification program for public school educator continuing education.), As Engrossed TO: Honorable Brandon Creighton, Chair, Senate Committee on Education FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB4358 by Allison (Relating to including digital teaching in the micro-credential certification program for public school educator continuing education.), As Engrossed Honorable Brandon Creighton, Chair, Senate Committee on Education Honorable Brandon Creighton, Chair, Senate Committee on Education Jerry McGinty, Director, Legislative Budget Board Jerry McGinty, Director, Legislative Budget Board HB4358 by Allison (Relating to including digital teaching in the micro-credential certification program for public school educator continuing education.), As Engrossed HB4358 by Allison (Relating to including digital teaching in the micro-credential certification program for public school educator continuing education.), As Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for HB4358, As Engrossed : a negative impact of ($999,344) through the biennium ending August 31, 2025. 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 HB4358, As Engrossed : a negative impact of ($999,344) through the biennium ending August 31, 2025. 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: 2024 ($783,879) 2025 ($215,465) 2026 $0 2027 $0 2028 $0 All Funds, Five-Year Impact: 2024 ($783,879) $0 2.0 2025 ($215,465) $0 2.0 2026 $0 ($215,465) $215,465 2.0 2027 $0 ($215,465) $215,465 2.0 2028 $0 ($215,465) $215,465 2.0 Fiscal Analysis The bill would require the State Board for Educator Certification (SBEC) to propose rules establishing a process for educators to receive micro-credentials in digital teaching. The bill would require SBEC to engage relevant stakeholders in the development of micro-credentials related to digital teaching. Methodology TEA assumes two full-time-equivalent (FTE) positions would be required to develop criteria and rules to create the micro-credential in digital teaching program at a cost of approximately $0.2 million per fiscal year. The positions would be needed to establish application and approval processes for micro-credential providers; audit providers; engage relevant stakeholders, provide technical assistance to educators and providers; collect and analyze data; and update databases and websites. The agency assumes current data tools would need to be updated to implement this section and anticipate the cost to be $33,440 in the first fiscal year.The agency anticipates a new SBEC fee would be paid by providers and educators to cover the administrative costs of the program beginning in fiscal year 2026. The agency anticipates a new SBEC fee would be paid by providers and educators to cover the administrative costs of the program beginning in fiscal year 2026. Technology TEA indicates that the cost to develop and implement provisions of the bill in the agency's Educator Certification Online System would be approximately $0.5 million for the biennium. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: b > td > 701 Texas Education Agency 701 Texas Education Agency LBB Staff: b > td > JMc, KSk, ASA, ENA JMc, KSk, ASA, ENA