LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
 
March 27, 2025

TO:
Honorable Brad Buckley, Chair, House Committee on Public Education
 
FROM:
Jerry McGinty, Director, Legislative Budget Board
 
IN RE:
HB2689 by Guillen (Relating to the establishment of an intensive workforce readiness adult education pilot program.), As Introduced


Estimated Two-year Net Impact to General Revenue Related Funds for HB2689, As Introduced: a negative impact of ($162,531,450) 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 to
General Revenue Related Funds
2026($52,429,500)
2027($110,101,950)
2028($173,410,571)
2029($242,774,800)
2030($318,641,925)

All Funds, Five-Year Impact:

Fiscal Year Probable Savings/(Cost) from
Foundation School Fund
193
2026($52,429,500)
2027($110,101,950)
2028($173,410,571)
2029($242,774,800)
2030($318,641,925)


Fiscal Analysis

The bill would require the Texas Education Agency (TEA) to establish an intensive workforce readiness adult education pilot program. 

The program would allow individuals eligible for an adult education program under Education Code, Section 12.258, to complete programs that lead to a high school diploma or a high school equivalency certificate, and career and technology courses that lead to certain certifications and licenses.  

Methodology

TEA assumes three additional charter schools would participate in the intensive workforce readiness pilot program in fiscal year 2026, and participation would increase by three charter schools each subsequent fiscal year. TEA also assumes an initial enrollment-based average daily attendance (ADA) of 1,500 for each charter school in the program in fiscal year 2026.

TEA assumes an annual growth rate of 5 percent in ADA. TEA anticipates total ADA for the pilot program would increase from 4,500 in fiscal year 2026 to approximately 27,300 in fiscal year 2030. TEA estimates funding per ADA to be $11,651 based on fiscal year 2024 charter school data.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.


Source Agencies:
320 Texas Workforce Commission, 701 Texas Education Agency
LBB Staff:
JMc, JPE, ASA, ANa