LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 28, 2025 TO: Honorable Brad Buckley, Chair, House Committee on Public Education FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1122 by Lopez, Janie (Relating to the employment of certified school counselors by school districts.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1122, As Introduced: a negative impact of ($300,079,860) through the biennium ending August 31, 2027. 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 amounts listed below reflect costs associated with salaries for the additional staff required by the bill and benefits related to TRS-Care and TRS-ActiveCare. Costs related to retirement benefits cannot be determined at this time. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2026($148,604,250)2027($151,475,610)2028($202,712,204)2029($206,634,210)2030($284,881,602)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromFoundation School Fund1932026($1,759,412)($146,844,838)2027($1,794,600)($149,681,010)2028($2,403,190)($200,309,014)2029($2,451,254)($204,182,956)2030($3,381,607)($281,499,995) Fiscal AnalysisThe bill would require a school district with 500 or more enrolled students to hire a certified school counselor for each school in the district, and to maintain a ratio of at least one school counselor for every 500 students. School districts with fewer than 500 enrolled students would be required to employ a part time school counselor, a part time teacher who is a certified counselor, or enter into a shared service arrangement with one or more school districts. The bill would incrementally decrease the threshold number of enrolled students and the ratio of counselors to students beginning with school year 2027-28, as follows:Beginning with the 2027-28 school year, the bill would reduce the threshold number of enrolled students to 450 and the ratio to one school counselor per 450 students. Beginning with the 2029-30 school year, the bill would reduce the threshold number of enrolled students to 400 and the ratio to one school counselor per 400 students. Beginning with the 2031-32 school year, the bill would reduce the threshold number of enrolled students to 350 and the ratio to one school counselor per 350 students. Beginning with the 2033-34 school year, the bill would reduce the threshold number of enrolled students to 300 and the ratio to one school counselor per 300 students.In each year, the bill would require school districts below the required student threshold to employ a part time school counselor, a part time teacher who is a certified counselor, or enter into a shared service arrangement.The bill would make Foundation School Program (FSP) funding available in an amount sufficient to compensate the district for employing the extra counselors needed, as determined by the commissioner of education. The bill would provide rulemaking authority to the commissioner regarding the FSP funding.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 28, 2025
TO: Honorable Brad Buckley, Chair, House Committee on Public Education FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1122 by Lopez, Janie (Relating to the employment of certified school counselors by school districts.), As Introduced
TO: Honorable Brad Buckley, Chair, House Committee on Public Education
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB1122 by Lopez, Janie (Relating to the employment of certified school counselors by school districts.), As Introduced
Honorable Brad Buckley, Chair, House Committee on Public Education
Honorable Brad Buckley, Chair, House Committee on Public Education
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB1122 by Lopez, Janie (Relating to the employment of certified school counselors by school districts.), As Introduced
HB1122 by Lopez, Janie (Relating to the employment of certified school counselors by school districts.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1122, As Introduced: a negative impact of ($300,079,860) through the biennium ending August 31, 2027. 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 amounts listed below reflect costs associated with salaries for the additional staff required by the bill and benefits related to TRS-Care and TRS-ActiveCare. Costs related to retirement benefits cannot be determined at this time.
Estimated Two-year Net Impact to General Revenue Related Funds for HB1122, As Introduced: a negative impact of ($300,079,860) through the biennium ending August 31, 2027. 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 amounts listed below reflect costs associated with salaries for the additional staff required by the bill and benefits related to TRS-Care and TRS-ActiveCare. Costs related to retirement benefits cannot be determined at this time.
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 amounts listed below reflect costs associated with salaries for the additional staff required by the bill and benefits related to TRS-Care and TRS-ActiveCare. Costs related to retirement benefits cannot be determined at this time.
The amounts listed below reflect costs associated with salaries for the additional staff required by the bill and benefits related to TRS-Care and TRS-ActiveCare. Costs related to retirement benefits cannot be determined at this time.
General Revenue-Related Funds, Five- Year Impact:
2026 ($148,604,250)
2027 ($151,475,610)
2028 ($202,712,204)
2029 ($206,634,210)
2030 ($284,881,602)
All Funds, Five-Year Impact:
2026 ($1,759,412) ($146,844,838)
2027 ($1,794,600) ($149,681,010)
2028 ($2,403,190) ($200,309,014)
2029 ($2,451,254) ($204,182,956)
2030 ($3,381,607) ($281,499,995)
Fiscal Analysis
The bill would require a school district with 500 or more enrolled students to hire a certified school counselor for each school in the district, and to maintain a ratio of at least one school counselor for every 500 students. School districts with fewer than 500 enrolled students would be required to employ a part time school counselor, a part time teacher who is a certified counselor, or enter into a shared service arrangement with one or more school districts. The bill would incrementally decrease the threshold number of enrolled students and the ratio of counselors to students beginning with school year 2027-28, as follows:Beginning with the 2027-28 school year, the bill would reduce the threshold number of enrolled students to 450 and the ratio to one school counselor per 450 students. Beginning with the 2029-30 school year, the bill would reduce the threshold number of enrolled students to 400 and the ratio to one school counselor per 400 students. Beginning with the 2031-32 school year, the bill would reduce the threshold number of enrolled students to 350 and the ratio to one school counselor per 350 students. Beginning with the 2033-34 school year, the bill would reduce the threshold number of enrolled students to 300 and the ratio to one school counselor per 300 students.In each year, the bill would require school districts below the required student threshold to employ a part time school counselor, a part time teacher who is a certified counselor, or enter into a shared service arrangement.The bill would make Foundation School Program (FSP) funding available in an amount sufficient to compensate the district for employing the extra counselors needed, as determined by the commissioner of education. The bill would provide rulemaking authority to the commissioner regarding the FSP funding.
Methodology
This analysis assumes that the State would provide aid sufficient to cover the full cost of employing the additional school counselors, including salary and benefits. To reach a ratio of one counselor to 500 students, the Texas Education Agency (TEA) estimates a total of 1,865 school counselors would be needed statewide. To reach a ratio of one counselor to 450 students, TEA estimates a total of 2,449 counselors would be needed statewide. To reach a ratio of one counselor to 400 students, TEA estimates a total of 3,312 counselors would be needed statewide.TEA estimates the average full time school counselor salary to be $75,460. TEA assumes costs would increase by 2.0 percent annually, based on the five-year average rate increase in the average salary for counselors between 2020 and 2025. This analysis assumes districts would incur local health care benefits costs of $6.1 million in fiscal year 2026, $8.1 million in fiscal year 2028, increasing to $11.0 million in fiscal year 2030 for required contributions to Teacher Retirement System (TRS)-Care and active employee health insurance. TRS retirement benefits costs cannot be determined at this time, as it is unknown to what degree the salaries of the new counselors would exceed the minimum salary schedule. Based on these estimates, this analysis assumes state costs from Foundation School Fund No. 193 would be $146.8 million in fiscal year 2026 (for a ratio of one counselor to 500 students), increasing to $200.3 million in fiscal year 2028 (for a ratio of one counselor to 450 students), and $281.5 million in the fiscal year 2030 (for a ratio of one counselor to 400 students). This analysis assumes state costs for TRS-Care from General Revenue would be $1.8 million in fiscal year 2026, increasing to $2.4 million in fiscal year 2028 and $3.4 million in fiscal year 2030.
Technology
This analysis assumes IT costs to implement the provisions of the bill could be absorbed using existing resources.
Local Government Impact
The bill would require school districts to employ additional school counselors to the extent that they are not currently in compliance with the counselor to student ratios specified by the bill. This analysis assumes there would be a cost to certain districts to the extent that funds provided through the FSP were not sufficient to cover all salary and benefits costs. These costs are expected to vary by school district.Additionally, this analysis assumes there may be additional costs to districts that enter into a Shared Services Agreement with another district related to additional administrative work and tracking.
Source Agencies: b > td > 304 Comptroller of Public Accounts, 701 Texas Education Agency
304 Comptroller of Public Accounts, 701 Texas Education Agency
LBB Staff: b > td > JMc, NC, ASA, ANa
JMc, NC, ASA, ANa