LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION March 6, 2025 TO: Honorable Brandon Creighton, Chair, Senate Committee on Education K-16 FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB569 by Bettencourt (relating to the provision of virtual education in public schools and to certain waivers and modifications by the commissioner of education to the method of calculating average daily attendance in an emergency or crisis for purposes of preserving school district funding entitlements under the Foundation School Program during that emergency or crisis; authorizing a fee.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for SB569, Committee Report 1st House, Substituted: a negative impact of ($62,588,179) 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($30,470,511)2027($32,117,668)2028($28,696,700)2029($28,977,870)2030($29,136,061)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($7,973,692)($22,496,819)($992,416)9.02027($9,699,218)($22,418,450)($621,776)9.02028($6,279,981)($22,416,719)($1,001,067)9.02029($6,279,981)($22,697,889)($628,121)9.02030($6,279,981)($22,856,080)($628,396)9.0 Fiscal AnalysisThe bill would require the Commissioner to include students enrolled in a remote or hybrid dropout recovery program in the calculation of a school district's ADA.The bill would repeal existing Texas Education Code (TEC), Chapter 30A, State Virtual School Network, and establish TEC, Chapter 30B: Virtual and Hybrid Campuses, Programs and Courses. The bill would require the Commissioner to adopt rules to administer the chapter and consult LEAs and parents in adoption of rules. The Commissioner could also form an advisory committee to assist with compliance under the new chapter.The Commissioner would be required to adopt rules for reporting and verifying the attendance of a student enrolled in a hybrid or virtual course or program. Under the bill, a student enrolled in a course or program offered under this chapter could be counted toward the district's ADA.The bill would require districts offering courses under this Chapter to certify to the Commissioner that the courses would meet certain requirements.The bill would allow a district to charge tuition and fees for a hybrid or virtual course provided to a student not eligible to enroll in the school district offering the course or any school district in Texas.The bill would require the agency to publish a list of virtual courses offered by districts including relevant information related to availability, costs, and third-party providers. Districts would be required to submit the necessary information to the agency.The Commissioner would be required to adopt rules related to establishing a full-time hybrid or virtual campus. Authorized campuses would be required to meet certain criteria.The Commissioner could revoke authorization of a full-time hybrid or virtual campus if the campus does not meet certain requirements.The bill would establish eligibility criteria for students that would wish to enroll in a full-time hybrid or virtual campus.The Commissioner would be required to use the average attendance rate of the district when computing the ADA of a student attending a full-time virtual or hybrid campus.The agency would be required to provide grants and technical assistance to LEAs to support the establishment of full-time hybrid or virtual campuses.If the Commissioner determines that a crisis or emergency caused a regional decrease in ADA, the Commissioner would be required to modify or waive certain requirements for affected districts.The bill would repeal Education Code, Section 29.909, Distance Learning Courses.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
March 6, 2025
TO: Honorable Brandon Creighton, Chair, Senate Committee on Education K-16 FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB569 by Bettencourt (relating to the provision of virtual education in public schools and to certain waivers and modifications by the commissioner of education to the method of calculating average daily attendance in an emergency or crisis for purposes of preserving school district funding entitlements under the Foundation School Program during that emergency or crisis; authorizing a fee.), Committee Report 1st House, Substituted
TO: Honorable Brandon Creighton, Chair, Senate Committee on Education K-16
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB569 by Bettencourt (relating to the provision of virtual education in public schools and to certain waivers and modifications by the commissioner of education to the method of calculating average daily attendance in an emergency or crisis for purposes of preserving school district funding entitlements under the Foundation School Program during that emergency or crisis; authorizing a fee.), Committee Report 1st House, Substituted
Honorable Brandon Creighton, Chair, Senate Committee on Education K-16
Honorable Brandon Creighton, Chair, Senate Committee on Education K-16
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB569 by Bettencourt (relating to the provision of virtual education in public schools and to certain waivers and modifications by the commissioner of education to the method of calculating average daily attendance in an emergency or crisis for purposes of preserving school district funding entitlements under the Foundation School Program during that emergency or crisis; authorizing a fee.), Committee Report 1st House, Substituted
SB569 by Bettencourt (relating to the provision of virtual education in public schools and to certain waivers and modifications by the commissioner of education to the method of calculating average daily attendance in an emergency or crisis for purposes of preserving school district funding entitlements under the Foundation School Program during that emergency or crisis; authorizing a fee.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for SB569, Committee Report 1st House, Substituted: a negative impact of ($62,588,179) 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 SB569, Committee Report 1st House, Substituted: a negative impact of ($62,588,179) 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 ($30,470,511)
2027 ($32,117,668)
2028 ($28,696,700)
2029 ($28,977,870)
2030 ($29,136,061)
All Funds, Five-Year Impact:
2026 ($7,973,692) ($22,496,819) ($992,416) 9.0
2027 ($9,699,218) ($22,418,450) ($621,776) 9.0
2028 ($6,279,981) ($22,416,719) ($1,001,067) 9.0
2029 ($6,279,981) ($22,697,889) ($628,121) 9.0
2030 ($6,279,981) ($22,856,080) ($628,396) 9.0
Fiscal Analysis
The bill would require the Commissioner to include students enrolled in a remote or hybrid dropout recovery program in the calculation of a school district's ADA.The bill would repeal existing Texas Education Code (TEC), Chapter 30A, State Virtual School Network, and establish TEC, Chapter 30B: Virtual and Hybrid Campuses, Programs and Courses. The bill would require the Commissioner to adopt rules to administer the chapter and consult LEAs and parents in adoption of rules. The Commissioner could also form an advisory committee to assist with compliance under the new chapter.The Commissioner would be required to adopt rules for reporting and verifying the attendance of a student enrolled in a hybrid or virtual course or program. Under the bill, a student enrolled in a course or program offered under this chapter could be counted toward the district's ADA.The bill would require districts offering courses under this Chapter to certify to the Commissioner that the courses would meet certain requirements.The bill would allow a district to charge tuition and fees for a hybrid or virtual course provided to a student not eligible to enroll in the school district offering the course or any school district in Texas.The bill would require the agency to publish a list of virtual courses offered by districts including relevant information related to availability, costs, and third-party providers. Districts would be required to submit the necessary information to the agency.The Commissioner would be required to adopt rules related to establishing a full-time hybrid or virtual campus. Authorized campuses would be required to meet certain criteria.The Commissioner could revoke authorization of a full-time hybrid or virtual campus if the campus does not meet certain requirements.The bill would establish eligibility criteria for students that would wish to enroll in a full-time hybrid or virtual campus.The Commissioner would be required to use the average attendance rate of the district when computing the ADA of a student attending a full-time virtual or hybrid campus.The agency would be required to provide grants and technical assistance to LEAs to support the establishment of full-time hybrid or virtual campuses.If the Commissioner determines that a crisis or emergency caused a regional decrease in ADA, the Commissioner would be required to modify or waive certain requirements for affected districts.The bill would repeal Education Code, Section 29.909, Distance Learning Courses.
Methodology
TEA assumes they would require 9.0 FTEs to implement provisions of the bill at a cost of $1.2 million in each fiscal year.TEA assumes $5.0 million per year would be required to provide grants and technical assistance to LEAs to support the establishment of full-time hybrid or virtual campuses. TEA further assumes $500,000 would be required for initial design and production costs.TEA assumes 3,000 additional ADA would be funded per year under the bill. The agency assumes the cost to the FSP would be $22.5 million in fiscal year 2026 and $22.4 million in fiscal year 2027, increasing to $22.9 million in fiscal year 2030. The agency assumes the cost to the FSP includes estimated decreases in Recapture Payments - Attendance Credits revenue of $1.0 million in fiscal year 2026, $0.6 million in fiscal year 2027, and $0.6 million in fiscal year 2030.
Technology
TEA assumes IT costs to implement the provisions of the bill would total $1.3 million in fiscal year 2026, $3.5 million in fiscal year 2027, and $122,932 in each subsequent fiscal year.
Local Government Impact
The agency assumes that there would be a local impact to LEAs that have implemented remote learning programs and would need to make adjustments to their programs to meet the requirements of the bill or to LEAs that would choose to implement a new program under the bill.
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, MJe
JMc, NC, ASA, MJe