SB 0843 - Fiscal Note

Fiscal Note - SB 0843 - Establishes new board for public school teacher standards and certification

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 3508-01

BILL NO. SB 843

SUBJECT: Education, Elementary and Secondary: School Board

TYPE: Original

DATE: February 10, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
General Revenue	($90,897)	$0	$0
Professional Educators' Standards and Practices Board	$0	$0	$0
Total Estimated Net Effect on All State Funds	($90,897)	$0	$0

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
None	$0	$0	$0
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 7 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials from the Governor's Office, Office of Administration, Harris-Stowe State College, and Office of State Courts Administrator assume the proposal would result in no fiscal impact on the agencies.

Based on a response to an identical proposal in 1995 (HB 602), officials from the Department of Revenue assumed the proposal would have no fiscal impact on them.

Officials from the State Treasurer's Office (STO) assume the proposal would create a new accounting fund for the program. This would slightly increase the number of accounting transactions that would be processed through the accounting system. It would also increase the funds available for investment. The STO would absorb the costs associated with increased accounting transactions and investments through it current appropriations.

Officials from the Secretary of State's Office state the bill would establish the Professional Educators' Standards and Practices Board with licensing authority over teachers. This new function would require promulgation of rules, regulations and forms. Based on experience with other licensing boards, this new function would likely require as many as 50 pages in the Code of State Regulations. The estimated unit cost of a page in the Missouri Register is $22.00. The estimated unit cost of a page in the Code of State Regulations is $20.00. For any given rule, roughly half again as many pages are published in the Register as in the Code because cost statements, fiscal notes and the like are not repeated in the Code. These costs are estimates. The actual costs could be rather more or less than the numbers given. The impact of SB 843 in future years is unknown and would depend upon the frequency and length of rules filed, amended or withdrawn. Therefore, SOS officials assume the proposal would cost $3,025 in FY 1999. SOS officials assume this bill alone would not require the Division of Administrative Rules to hire additional persons, but the cumulative effect of other bills that require rulemaking activity could, in the aggregate, necessitate additional staff. The Oversight Division assumes the SOS could promulgate rules, regulations and forms with existing resources.

Officials from the Department of Corrections (DOC) state that as it relates to the DOC, this bill has penalty provision for a class A misdemeanor and a class D felony. Currently, the DOC cannot predict the number of new commitments which could result from the creation of the offense(s) outlined in this proposal. An increase in commitments depends on the utilization by prosecutors and the actual sentences imposed by the court. If additional persons are sentenced to the custody of the DOC due to the provisions of this legislation, the DOC would incur a corresponding increase in operational costs either through incarceration (average of $30.37 per

ASSUMPTION (continued)

inmate, per day) or through supervision provided by the Board of Probation and Parole (average of $2.47 per offender, per day).

Supervision by the DOC through probation or incarceration would result in some additional costs, but it is assumed that the impact would be minimal.

Officials from the Department of Elementary and Secondary Education (DESE) assume the fiscal impact is unknown; however, as this bill would establish a fee-based licensing operation these costs would be subsidized by the primary users, teachers and higher education institutions.

Unless the CBHE under the provisions of 168.651(2) would absorb all operating costs, it is a duplication of existing service provided by DESE. In addition, this would place a fee structure upon the colleges and teachers to support the operation of a system that is now free.

DESE officials state they currently have the following personnel with duties related to the regulation and licensure of professional educators:

Professional Development

Director: $44,496

Secretary: $21,108

Total $65,604

Certification

Director: $44,496

Supervisor (4): $144,144

Program Specialist (5): $132,000

Clerk: $18,500

Total $339,140

Program Approval

Director: $47,250

Secretary: $22,200

Total $69,450

ASSUMPTION (continued)

Leadership Academy

Coordinator: $61,500

Assistant Director: $38,580

Education Consultants (3): $131,364

Supervisors (2): $72,576

Senior Secretary: $19,776

Secretaries (2): $31,512

Program Specialist: $23,688

Total $378,996

Total all divisions $853,190

The Oversight Division assumes the CBHE could provide the new duties with the FTE (11) DESE included in Certification above plus rental space cost of $8.60 per square foot and 200 square feet per FTE and clerical and professional one-time costs of $6,830 per FTE.

DESE stated that currently fees of $25 each are only charged for out-of-state applications. They do not charge for in-state applications. The charge for duplicate certificates is $5 each. DESE receives approximately $80,000 annually in fees. For purposes of this fiscal note, the Oversight Division assumes the CBHE would charge fees to cover the costs of providing the certification. Oversight assumes the costs would be funded by the General Revenue Fund in the first year, and the Professional Educators' Standards and Practices Board Fund in subsequent years from the fees charged per application.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
GENERAL REVENUE FUND
Savings-DESE
Personal Service (11 FTE)	$286,932	$0	$0
Fringe Benefits	80,427	0	0
Expense and Equipment	33,417	0	0
Total Savings-DESE	$400,776	$0	$0
FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
(Continued)	(10 Mo.)
Cost-CBHE
Personal Service (11 FTE)	($286,932)	$0	$0
Fringe Benefits	(80,427)	0	0
Expense and Equipment	(124,314)	0	0
Total Cost-CBHE	($491,673)	$0	$0
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND	($90,897)	$0	$0
PROFESSIONAL EDUCATORS'
STANDARDS AND PRACTICES
BOARD FUND
Income-CBHE
Licensure Fees	$0	$516,405	$529,049
Cost-CBHE
Personal Service	$0	($356,309)	($365,217)
Fringe Benefits	0	(99,873)	(102,370)
Expense and Equipment	0	(60,223)	(61,462)
Total Cost-CBHE	$0	($516,405)	($529,049)
ESTIMATED NET EFFECT ON
PROFESSIONAL EDUCATORS'
STANDARDS AND PRACTICES
BOARD FUND	$0	$0	$0
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
			000
FISCAL IMPACT - Small Business

No direct fiscal impact to small businesses would be expected as a result of this proposal.

DESCRIPTION

The proposal would remove from the State Board of Education the responsibility of evaluating teacher training institutions and issuing, renewing, suspending or revoking certificates of license to teach. The Professional Educators' Standards and Practices Board would develop tests for entry-level testing of prospective teacher education students, instead of the Department of Elementary and Secondary Education. That board would also establish and monitor exit requirements from approved teacher education programs and establish guidelines for assessing prospective school administrators.

The bill would create the Professional Educators' Standards and Practices Act. This act would establish within the Coordinating Board for Higher Education an independent board responsible for the regulation and licensure of professional educators, known as the Professional Educators' Standards and Practices Board. The board would consist of nineteen members, including the Commissioner of Education and Commissioner of Higher Education. The members would serve without compensation, but would be reimbursed for actual and necessary expenses incurred in the performance of board business. The board would employ an executive director. Meetings would occur at least once per month.

The Coordinating Board for Higher Education would provide personnel, property, etc. necessary to carry out the board's functions.

Fees collected would be collected by the board and transmitted to the Department of Revenue and deposited in the Professional Educators' Standards and Practices Board Fund. Fees should not substantially exceed the cost of administering the functions.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements. It would require additional rental space.

SOURCES OF INFORMATION

Department of Elementary and Secondary Education

Governor's Office

Office of Administration

Harris-Stowe State College

Office of State Courts Administrator

State Treasurer's Office

Secretary of State's Office

Department of Corrections

NOT RESPONDING: Coordinating Board For Higher Education, University of Missouri, Central Missouri State University, Southwest Missouri State University, Northwest Missouri State University

Jeanne Jarrett, CPA

Director

February 10, 1998