TO:	Honorable Brandon Creighton, Chair, Senate Committee on Education K-16
FROM:	Jerry McGinty, Director, Legislative Budget Board
IN RE:	SB2253 by Creighton (relating to the certification of public school educators, including financial and other assistance provided to public schools by the Texas Education Agency.), Committee Report 1st House, Substituted

General Revenue-Related Funds, Five- Year Impact:

All Funds, Five-Year Impact:

Fiscal Analysis

The bill would provide one-time payments for certain uncertified teachers who earn a standard certificate.

The bill would require the State Board for Educator Certification to develop rules and procedures relating to evaluating educator preparation programs (EPP) for approval and the renewal of approval, including educator literacy and mathematics achievement academies.

The bill would require the commissioner to develop and make available instructional materials for EPPs and training for faculty responsible for preparing educator candidates.

The bill would require school districts to pay a teacher with zero years of experience who holds a certification under Education Code, Section 21.0412(a), a minimum salary that is greater than a teacher with equivalent experience who does not hold a certification under that section. The bill would prohibit school districts from adopting a salary schedule for teachers with five or more years of experience that differentiates minimum salaries based solely on certification.

The bill would direct school districts to provide onetime payments to certain teacher candidates for completing literacy or math academies.

The bill would establish the Preparing and Retaining Educators through Preservice Partnership (PREPP) Programs to provide preservice practice opportunities for teacher candidates in a prekindergarten through grade 12 classroom through partnerships between school districts or open-enrollment charter schools and EPPs. The Texas Education Agency (TEA) would be required to provide technical assistance and support to participating schools and EPPs.

The bill would establish the Preparing and Retaining Educators through Preservice Partnership Program Allotment for the PREPP Programs. For each teacher candidate completing preservice practice hours at the district under Subchapter Q, Chapter 21, the district would be entitled to an allotment equal to the sum of a base amount ranging from $8,000 to $24,000, and an amount ranging from $1,000 to $3,000 multiplied by the high needs and rural factor, which would have a maximum value of 4.0, as determined under Subsection (c). The Texas School for the Deaf, the Texas School for the Blind and Visually Impaired, and schools in the Texas Department of Criminal Justice would be entitled to the allotment under this section. Eligible districts with candidates for special or bilingual education certification employed in a residency position would be entitled to an additional $2,000 allotment.

The bill would repeal the Mentor Program Allotment under the Foundation School Program (FSP).

The bill would repeal Government Code, Section 825.4092(f), to allow employers to pass on surcharges to employed retirees.

Methodology

This analysis assumes total costs to provide onetime payments of $1,000 to certain previously uncertified teachers would total $15.0 million for fiscal year 2027, based on TEA's assumption that approximately 15,000 uncertified teachers would earn a standard certificate.

TEA assumes the cost to evaluate EPPs for approval and renewal of approval would be $6.4 million in fiscal year 2026, $5.7 million in fiscal year 2027, increasing to $6.0 million in fiscal year 2030.

TEA assumes the cost for developing instructional materials and faculty training for EPPs would be $2.3 million in fiscal year 2026, $2.5 million in fiscal year 2027, increasing to $4.8 million in fiscal year 2030.

The cost to require different statewide minimum salaries to teachers based on certification types cannot be determined, as the required salary differences between certification categories and which teachers the new certification types would apply to are unknown.

TEA assumes that 35.0 percent of estimated teacher candidates in eligible preparation programs would complete certain program requirements and be eligible to receive onetime stipends for completion of literacy and math academies, with residency program candidates receiving stipends in fiscal year 2026 and candidates in other eligible preparation programs receiving stipends beginning in fiscal year 2027. TEA assumes that given the timeline of implementation, only literacy academies would be operational in fiscal years 2026 and 2027, with both trainings being operational and required beginning in fiscal year 2028. TEA assumes the cost of these stipends would be $0.5 million in fiscal year 2026, $4.7 million in fiscal year 2027, increasing to $9.1 million in fiscal year 2030.

TEA estimates that provisions of the bill establishing the PREPP Programs, including programmatic supports and a dedicated application management system, would total $19.5 million in fiscal year 2026, $27.3 million in fiscal year 2027, increasing to $34.2 million in fiscal year 2030.

The Teacher Retirement System assumes there would be no significant fiscal impact to the state from allowing employers to pass on surcharges to employed retirees.

The analysis assumes that TEA would require 26.0 FTEs annually to implement provisions of the bill at a cost of $3.2 million in fiscal year 2026 and $3.1 million in subsequent fiscal years.

TEA estimates that the cost to the FSP would include decreases in Recapture Payments - Attendance Credits revenue of $7.6 million in fiscal year 2026, $25.7 million in fiscal year 2027, and $43.9 million in fiscal year 2030.

The bill would amend or create other allotments and provisions the FSP as outlined in the Fiscal Analysis section above. TEA assumes the cost to the FSP would be $62.3 million in fiscal year 2026, $212.5 million in fiscal year 2027, increasing to $364.4 million in fiscal year 2030.

Technology

TEA assumes IT costs to implement the provisions of the bill would total $0.2 million in fiscal year 2026 and $0.6 million in fiscal year 2027.

Local Government Impact

This analysis assumes local education agencies would receive additional funding through the FSP under the bill.