LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION March 5, 2025 TO: Honorable Brad Buckley, Chair, House Committee on Public Education FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB120 by Bell, Keith (Relating to career and technology education programs in public schools, the Rural Pathway Excellence Partnership (R-PEP) program, and a high school advising program, including funding for those programs under the Foundation School Program, and to the new instructional facility allotment and the permissible uses of funding under the Foundation School Program.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB120, As Introduced: a negative impact of ($495,810,541) 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. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2026($224,866,487)2027($270,944,054)2028($300,175,237)2029($284,455,617)2030($282,353,403)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromFoundation School Fund193 Probable Revenue Gain/(Loss) fromRecapture Payments Atten Crdts8905 Change in Number of State Employees from FY 20252026($2,324,182)($222,542,305)($21,622,021)1.02027($2,646,115)($268,297,939)($43,779,063)1.02028($2,104,483)($298,070,754)($36,927,339)1.02029($2,104,483)($282,351,134)($59,502,203)1.02030($2,104,483)($280,248,920)($61,363,725)1.0 Fiscal AnalysisThe bill would include courses under a junior ROTC program in what is considered career and technology education programs and for which a district could generate entitlement under the Career and Technology Education (CTE) Allotment under the Foundation School Program (FSP).The bill would establish the Military Pathway Grant Program which would provide funds to school districts to establish a Junior ROTC program for students enrolled in high school in the district, administer the Armed Services Vocational Aptitude Battery test, and provide career counseling to participating students. Each participating district would receive a grant of $50,000 and the total amount of grants that could be awarded would be limited to $2 million each year.The bill would create a high school advising program, administered by TEA, which would support participating districts and open-enrollment charter schools in providing college or career advising support to students. Participating districts and open-enrollment charter schools would be required to have a partnership agreement with a public institution of higher learning, or a vocational program at a public institution of higher education, to provide college or career advisors. Advisors would be required to be trained in practices relating to college or career advising, and would be prohibited from having caseloads of more than 200 students. Students in grade levels 11 and 12 would be prioritized. The bill would grant rulemaking authority to the commissioner to implement the high school advising program, and would require the commissioner to consult with TWC and the Texas Higher Education Coordinating Board.The bill would establish the High School Advising Allotment under the FSP. The allotment would provide $50,000 for each full-time equivalent advisor or contracted service provider under the high school advising program and would limit the number of advisors for whom a district may receive the allotment to one advisor per 200 students enrolled in the district in grade levels 11 and 12. The allotment would be reduced by 20 percent for each school year, beginning in the fifth school year, unless the district's performance for the school year met certain criteria.The bill would increase the per student amount under P-TECH from $50 per ADA to $150 per enrolled student and would extend P-TECH funding to a student who has graduated from high school but is enrolled in the district under a P-TECH program for which the student could earn dual credit.The bill would extend the allowable uses of funds under the New Instructional Facilities Allotment (NIFA) and would increase the amount appropriated for NIFA from $100 million to $150 million each year.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
March 5, 2025
TO: Honorable Brad Buckley, Chair, House Committee on Public Education FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB120 by Bell, Keith (Relating to career and technology education programs in public schools, the Rural Pathway Excellence Partnership (R-PEP) program, and a high school advising program, including funding for those programs under the Foundation School Program, and to the new instructional facility allotment and the permissible uses of funding under the Foundation School Program.), As Introduced
TO: Honorable Brad Buckley, Chair, House Committee on Public Education
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB120 by Bell, Keith (Relating to career and technology education programs in public schools, the Rural Pathway Excellence Partnership (R-PEP) program, and a high school advising program, including funding for those programs under the Foundation School Program, and to the new instructional facility allotment and the permissible uses of funding under the Foundation School Program.), 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
HB120 by Bell, Keith (Relating to career and technology education programs in public schools, the Rural Pathway Excellence Partnership (R-PEP) program, and a high school advising program, including funding for those programs under the Foundation School Program, and to the new instructional facility allotment and the permissible uses of funding under the Foundation School Program.), As Introduced
HB120 by Bell, Keith (Relating to career and technology education programs in public schools, the Rural Pathway Excellence Partnership (R-PEP) program, and a high school advising program, including funding for those programs under the Foundation School Program, and to the new instructional facility allotment and the permissible uses of funding under the Foundation School Program.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB120, As Introduced: a negative impact of ($495,810,541) 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.
Estimated Two-year Net Impact to General Revenue Related Funds for HB120, As Introduced: a negative impact of ($495,810,541) 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 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:
2026 ($224,866,487)
2027 ($270,944,054)
2028 ($300,175,237)
2029 ($284,455,617)
2030 ($282,353,403)
All Funds, Five-Year Impact:
2026 ($2,324,182) ($222,542,305) ($21,622,021) 1.0
2027 ($2,646,115) ($268,297,939) ($43,779,063) 1.0
2028 ($2,104,483) ($298,070,754) ($36,927,339) 1.0
2029 ($2,104,483) ($282,351,134) ($59,502,203) 1.0
2030 ($2,104,483) ($280,248,920) ($61,363,725) 1.0
Fiscal Analysis
The bill would include courses under a junior ROTC program in what is considered career and technology education programs and for which a district could generate entitlement under the Career and Technology Education (CTE) Allotment under the Foundation School Program (FSP).The bill would establish the Military Pathway Grant Program which would provide funds to school districts to establish a Junior ROTC program for students enrolled in high school in the district, administer the Armed Services Vocational Aptitude Battery test, and provide career counseling to participating students. Each participating district would receive a grant of $50,000 and the total amount of grants that could be awarded would be limited to $2 million each year.The bill would create a high school advising program, administered by TEA, which would support participating districts and open-enrollment charter schools in providing college or career advising support to students. Participating districts and open-enrollment charter schools would be required to have a partnership agreement with a public institution of higher learning, or a vocational program at a public institution of higher education, to provide college or career advisors. Advisors would be required to be trained in practices relating to college or career advising, and would be prohibited from having caseloads of more than 200 students. Students in grade levels 11 and 12 would be prioritized. The bill would grant rulemaking authority to the commissioner to implement the high school advising program, and would require the commissioner to consult with TWC and the Texas Higher Education Coordinating Board.The bill would establish the High School Advising Allotment under the FSP. The allotment would provide $50,000 for each full-time equivalent advisor or contracted service provider under the high school advising program and would limit the number of advisors for whom a district may receive the allotment to one advisor per 200 students enrolled in the district in grade levels 11 and 12. The allotment would be reduced by 20 percent for each school year, beginning in the fifth school year, unless the district's performance for the school year met certain criteria.The bill would increase the per student amount under P-TECH from $50 per ADA to $150 per enrolled student and would extend P-TECH funding to a student who has graduated from high school but is enrolled in the district under a P-TECH program for which the student could earn dual credit.The bill would extend the allowable uses of funds under the New Instructional Facilities Allotment (NIFA) and would increase the amount appropriated for NIFA from $100 million to $150 million each year.
Methodology
TEA assumes there would be a cost to the state if the SBOE were to adopt TEKS for JROTC courses to be included in a CTE program. TEA assumes $34,200 in committee costs would be required in fiscal year 2026 to develop TEKS recommendations.The agency assumes the cost to provide grants to districts to establish a JROTC program would be limited by the $2.0 million cap each fiscal year.TEA assumes 1.0 FTE would be required to implement the provisions of the bill for a cost of $0.1 million in each fiscal year.The bill would amend or create allotments under the FSP as outlined in the Fiscal Analysis section above. TEA assumes that the total cost to the FSP would be $222.5 million in fiscal year 2026, $268.3 million in fiscal year 2027, increasing to $280.2 million in fiscal year 2030.The cost to the FSP includes estimated decreases in Recapture Payments Attendance Credits revenue of $21.6 million in fiscal year 2026, $43.8 million in fiscal year 2027, increasing to $61.4 million in fiscal year 2030.
Technology
TEA assumes IT costs associated with implementing the provisions of the bill would be $0.2 million in fiscal year 2026 and $0.5 million in fiscal year 2027.
Local Government Impact
This analysis assumes local education agencies (LEAs) would receive additional funding through the FSP under the bill.
Source Agencies: b > td > 320 Texas Workforce Commission, 701 Texas Education Agency
320 Texas Workforce Commission, 701 Texas Education Agency
LBB Staff: b > td > JMc, NC, ASA, MJe
JMc, NC, ASA, MJe