Fiscal Note - SB 0030 - Charter Schools Act
L.R. NO. 0157-02
BILL NO. SB 30
SUBJECT: Education, Elementary and Secondary
TYPE: Original
DATE: December 27, 1996
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None $0 $0 $0
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None $0 $0 $0
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government ($ 0 to $75,000) ($0 to $75,000) ($0 to $75,000)
FISCAL ANALYSIS
ASSUMPTION
Officials from the Oversight Division assume the language regarding audits of
charter schools by the Committee on Legislative Research is permissive. Any
audits assigned by the Committee or by concurrent resolution of the General
Assembly would be prioritized by the Committee and performed as time allows.
No additional staff or funding would be required.
Officials from the State Auditor's Office assume the proposal would have no
fiscal impact on them.
Officials from the Department of Elementary and Secondary Education (DESE)
assume the proposal would require them to provide technical assistance to
sponsors for review of proposed charter schools contracts. DESE would be
required to provide information on forming, operating and utilizing charter
schools. The State Board would have authority to terminate contracts under
certain conditions. DESE assumes they would need one FTE Director ($43,230)
to review contracts, provide technical assistance, assess charter schools,
and work as a liaison between the State Board and charter schools. DESE
assumes they would distribute information to all school districts on charter
schools during FY 98. DESE estimates development costs would run $1,000
during FY 98. They assume printing costs for 525 districts at three pages
each and ten cents each would be $157.50. Mailing and envelopes for 525
districts at $.52 would be $273.00.
Based on a response from DESE to similar legislation from a previous year,
they assumed providing technical assistance to sponsor school districts would
be from existing appropriations, and the fiscal impact at the state level
would be minimal. Therefore, the Oversight Division has shown no
administrative costs for DESE in the fiscal impact.
DESE assumes the cost of schooling in a charter school would be no higher
than the per pupil expenditures in a regular school. They also assume the
funds for operating the charter schools would be obtained by shifting
existing revenue. DESE states that the only additional costs would be for
legal and financial review of the contract as required by the proposed
statute. The cost for legal and accounting fees is assumed to be a cost to
the sponsoring district since participation would be voluntary. They assume
the cost for legal and accounting fees for review of the proposed contracts
would be estimated at a one-time cost of $5,000 per charter school. An
estimated fifteen charter schools would be started each year throughout the
state:
$5,000 per contract x 15 schools = $75,000
The Oversight Division has ranged these costs, since they would depend on the
number of schools participating.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
0 0 0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
Cost-School Districts
Legal Fees and Financial Review ($0 to ($0 to ($0 to
$75,000) $75,000) $75,000)
FISCAL IMPACT - Small Business
Small businesses (legal and accounting firms) could be fiscally impacted by
receiving revenues for performing legal and financial reviews for the school
districts.
DESCRIPTION
The proposal would authorize charter schools, which could be sponsored by
school boards. DESE would be required to provide technical assistance to
sponsors for review of proposed contracts, which would have to be reviewed
by an attorney and a certified public accountant. The contracts would be
submitted to the board of education. DESE would be required to provide
school districts information regarding formation and operation of a charter
school. Schools would not be allowed to charge tuition. The board would not
be allowed to levy taxes or issue bonds.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Department of Elementary and Secondary Education
Oversight Division
State Auditor's Office
This Fiscal Note is not an official copy and should not be quoted or cited.