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F I S C A L I M P A C T R E P O R T



SPONSOR: Beam DATE TYPED: 02/17/99 HB 526
SHORT TITLE: Performance-Based Compensation Pilot SB
ANALYST: Fernandez

APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY99 FY2000 FY99 FY2000
$ 100.0 Recurring GF



(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION



State Department of Education (SDE)



SUMMARY



Synopsis of Bill



House Bill 526 requires SDE to develop and conduct a performance-based compensation pilot project in fifteen public high schools.



Significant Issues



SDE will select three volunteer teachers from fifteen high schools to participate in the project.



During development of the pilot project, SDE shall involve students, parents, teachers, representatives of educational organizations and community members. SDE shall also develop a mechanism for teacher evaluation and a procedure for student evaluations and evaluation portfolios.



The department shall assess progress and make recommendations to the first session of the forty-fifth legislature.



FISCAL IMPLICATIONS



House Bill 526 appropriates $100.0 from the general fund to SDE for expenditure in fiscal years 2000 and 2001. Any unexpended or unencumbered balance remaining at the end of fiscal year 2001 shall revert to the general fund.



If teachers meet the standards of excellence established by SDE, they will receive a $2.0 award. The appropriation contains sufficient funds to provide a $2.0 increase for all 45 participating teachers.



ADMINISTRATIVE IMPLICATIONS



The State Department of Public Education may use $10.0 or ten percent of the appropriation for administrative costs incurred with this project.



SDE indicates there may be some administrative impact on the public schools in evaluating performance.



CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP



House Bill 526 duplicates Senate Bill 494.



OTHER SUBSTANTIVE ISSUES



According to SDE, since the pilot targets high school teachers, it could be difficult in generalizing the effectiveness of the pilot to all levels. SDE suggests that perhaps the pilot could be conducted with teachers from all levels. For example, 15 elementary teachers, 15 middle/junior high teachers, and 15 high school teachers could be included.



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