Fiscal Note - SB 0428 - Revises Distribution of State Aid for Special Education
L.R. NO. 1516-01
BILL NO. SB 428
SUBJECT: Elementary and Secondary Education: Disabilities
TYPE: Original
DATE: April 1, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
General Revenue $0 ($0 to $5,800,000)($0 to $5,800,000)
Total Estimated
Net Effect on All
State Funds $0 ($0 to $5,800,000)($0 to $5,800,000)
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 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials from the St. Louis Special School District assume the Department of
Elementary and Secondary Education has calculated the fiscal impact for each
school district. They assume the proposal would have no fiscal impact on
them from administrative stand point.
Officials from the Department of Mental Health assume the proposal would
result in no fiscal impact to them. Instead, they assume the fiscal impact
would be on the Department Elementary and Secondary Education.
Officials from the Department of Social Services assume the proposal would
result in no fiscal impact to them because DESE officials have explained to
them that the formula for figuring monies going to the Division of Youth
Services would not be affected by the proposal.
Officials from the Department of Elementary and Secondary Education (DESE)
assume the new formula for state special education funds would redistribute
any new funds among districts. However, the legislation specifically states
that the formula would be subject to appropriation, so no cost is assumed by
DESE. The increase to a maximum of 90% for state funding for early childhood
special education could lead to increased state funding for this program.
The remaining 10%+ would be paid from federal funds. Therefore, the actual
cost to state funds would be dependent on the availability of federal funds
and decisions of the General Assembly. In FY 97, $34.5 million is
appropriated for early childhood special education. DESE estimates this
would provide the state maximum of 77% of the cost. Total cost would be
estimated at $44.8 million ($34.5/.77). If the legislation were effective
for FY 97, the maximum increased cost to state revenue would be $5.8 million:
$44.8 x 90% = $40.3
$40.3 - $34.5 = $5.8 million
However, sufficient federal funds would be available to continue paying 23%
of the cost for FY 97 and FY 98. The cost would therefore be $0 for FY 98
and range from $0 to $5.8 million for future fiscal years. Cost, if any,
would be to General Revenue.
DESE officials assume the early childhood special education change would not
affect school districts. They could receive more state and less federal
funds for the program, but the net impact would be $0. DESE states the
Missouri Supreme Court has ruled that the state cannot require districts to
pay for any portions of the program from local revenue or non-earmarked state
revenue.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
GENERAL REVENUE FUND
Cost-Department of Elementary and Secondary
Education
Early Childhood Special Education $0 ($0 to ($0 to
$5,800,000) $5,800,000)
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of
this proposal.
DESCRIPTION
A school district or special school district would receive state aid for
approved special education services for handicapped or severely handicapped
children. Additional state aid for such programs would be allocated in the
following order of priority, services on homebound status or served by
contractual arrangement with a private or public agency approved by DESE;
approved extended school year services for handicapped children; approved
special education services provided by the Department of Social Services-
Division of Youth Services; and approved professional and paraprofessional
staff providing special education services for handicapped children.
Each school district providing special education services for handicapped
children would receive state aid for each eligible pupil. The per resident
student rate paid for students enrolled in nonpublic schools would be
one-half that paid per eligible pupil for students enrolled in a school
district or special school district.
For approved special education and related services provided for handicapped
and severely handicapped children under five years of age, but not under
three, entitlements for state aid would not exceed 90% (currently 77%) of
approved the cost of the program.
Each school district or special school district which provides remedial
reading would receive state aid, provided that the state aid would not exceed
ninety percent of the approved cost of the program.
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
Department of Social Services
Department of Mental Health
St. Louis Special School District
This Fiscal Note is not an official copy and should not be quoted or cited.