SB 0347 - Fiscal Note

Fiscal Note - SB 0347 - Line 14 "At-Risk" moneys may be used for early grade foreign language instruction

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 1587-02

BILL NO.: SCS For SBs 347, 40, 241 & 301

SUBJECT: Education, Elementary and Secondary: Public Schools

TYPE: Original

DATE: March 5, 1999

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
General Revenue	($250,550 to Unknown)	($247,014 to Unknown)	($248,264 to Unknown)
Total Estimated Net Effect on All State Funds	($250,550 to Unknown)	($247,014 to Unknown)	($248,264 to Unknown)

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
None	$0	$0	$0
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Local Government	($46,599 to *Unknown)	($46,599 to *Unknown)	($46,599 to *Unknown)

*Could exceed $650,000 annually.

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 9 pages.

.FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Economic Development-Professional Registration, Office of Administration, Linn State Technical College, Public School Retirement System and Department of Health assume the proposal would result in no fiscal impact to the agencies.

Officials from the Joint Committee on Public Employee Retirement assume the legislation would not affect retirement plan benefits as defined in section 105.660(5).

Officials from the Coordinating Board For Higher Education (CBHE) assume the requirements for the CBHE would be to determine the extent of continuation of the Constitution/American history and institutions courses in colleges and universities. This requirement of itself would not entail a fiscal impact. However, if the colleges and universities must significantly revise the curricula of the affected courses there could be fiscal impacts on the campus level.

Officials from the Department of Elementary and Secondary Education (DESE) assume the proposal would result in the following fiscal impact:

Section 162.1120 would prohibit skill certification as a requisite condition of employment. This would include any school-to-work program. The proposal clarifies that this does not affect a state agency's authority regarding professional registration, licensing or certification (similar to SB 191 661-01N); therefore, no fiscal impact would result to DESE or to the state.

Section 163.011 reduces the restrictions on counting no more than 18 cents of the tax rate in the Debt Service Fund and/or Capital Projects Fund in the foundation formula (similar to SB 439 1845-01N). Some districts may be able to have 18 cents more included in the formula calculation. This would increase the cost to fully fund the formula. The increase would be to the State Schools Monies Fund. There is not enough data available to provide a specific estimate. It is believed this increase could be in excess of $100,000 annually. There would be an increase in state aid to the districts through the formula.

The proposal would allow school districts to establish youth at-risk committees at the discretion of the district (section 167.243). Resources existing within the district would be used to support the committee; therefore, the impact would be insignificant at the district and state level.

ASSUMPTION (continued)

Section 167.333 would expand school districts' authority to adopt a policy regarding student promotion contingent on remediation. School districts could also require parents or guardians of such students to commit to conduct home-based tutorial activities with their children. The proposal would establish the State Board of Education's responsibilities to support and monitor this program. The proposal would establish a matching grant program (similar to SB 425 1847-01N). DESE officials assume they would need additional staffing: Supervisor 1.00 FTE; Program Specialist II 0.50 FTE; and Senior Secretary 1.00 FTE. The DESE IT section would be required to develop and maintain software. The Oversight Division has included one FTE Program Specialist II in the fiscal impact, assuming existing DESE grant and testing personnel could assist the program specialist.

The bill would require retesting of certain students. The cost to the state would be as follows: $8.10/test X 24,526 students = $198,661. This amount would be expected to exceed $100,000 for FY 2002 and FY 2003. School districts would experience additional costs as students are required to retake tests. For FY 2000, this amount is estimated to be $1.90/test X 24,526 students = $46,599. This amount is expected to remain below $100,000 for FY 2002 and FY 2003 for school districts statewide. The Oversight Division has included state costs of $198,661 and school district costs of $46,599 for FY 2002, assuming the same level of retesting.

Oversight has also included an unknown cost to DESE and unknown income to school districts for reading programs outside the traditional school day because school districts could count extra hours of instruction in the calculation of average daily attendance. Oversight assumes this would result in additional state aid to the school districts which choose to offer programs outside the traditional school day.

Also, school districts that opt for a remediation program that increases their attendance figures, would increase the amount of state aid they receive through the formula. It is not possible to estimate the impact of this since it is entirely optional. This would affect the State Schools Monies Fund.

Assuming the General Assembly makes an appropriation for the matching grant program, there will be increased state monies going to school districts that are successful in applying for grants. The amount of this local assistance depends on the amount appropriated by the General Assembly for this purpose.

ASSUMPTION (continued)

Section 168.295 would allow certain retired teachers to teach for up to 2 years without losing retirement benefits (similar to HB 564 1108-01N).

Minimal impact would result to DESE for adopting rules, developing forms and processing applications. This impact would be estimated to be less than $25,000. The Oversight Division assumes DESE could absorb the additional cost.

Section 168.302 would limit to 600 the number of students any art, music or physical education teacher could teach in a school term unless the school board has requested and received a special waiver from the State Board of Education. The fiscal impact is unknown.

170.011 requires public school courses in American history to include civil rights issues and sex education courses to emphasize abstinence and to contain specified content on certain topics (similar to SB 163 272-01N).

There may be a fiscal impact to DESE if the State is required to reimburse school districts for costs associated with this legislation. DESE officials assume that 90% of the school districts are already in compliance with this legislation by including abstinence as the preferred choice of behavior. If it is decided that the state is obligated to reimburse districts for expenses for sex education classes, the following assumptions could be included in the cost:

Assumptions:

1) Sex education would be taught at two grade levels. All students in grades 7 and 10 (approximately 130,000) would receive this course.

2) Supplementary materials and workshops would be required. It is assumed that the estimate of students would remain 130,000 for each year.

3) Materials would cost $5/student each year ($5 x 130,000 = $650,000)

4) 830 teachers of sex education would need an annual workshop for training (830 x $30 = $24,900)

5) Total cost each year could be $674,900

6) No costs are assumed for parent notification.

7) There is no mention of who would monitor the districts for compliance.

ASSUMPTION (continued)

The Oversight Division has ranged the estimated costs at the local level because all school districts would not necessarily continue teaching sex education, and the costs per district would vary.

Oversight also assumes the proposal would not mandate any additional coursework but would direct the subject matter of existing courses and could result in a cost of updating existing textbooks and course materials. Oversight has excluded the costs of training and retraining because it is assumed the districts could incorporate the training related to this proposal in their regular training sessions.

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
GENERAL REVENUE FUND
Cost-Department of Elementary and
Secondary Education (DESE)
Personal Service (1 FTE)	($24,887)	($30,611)	($31,376)
Fringe Benefits	(7,439)	(9,150)	(9,378)
Expense and Equipment	(19,563)	(8,592)	(8,849)
Assessment Tests	(198,661)	(198,661)	(198,661)
Grants	(Unknown)	(Unknown)	(Unknown)
State Aid	(Unknown)	(Unknown)	(Unknown)
Total Cost-DESE	($250,550 to	($247,014 to	($248,264 to
	Unknown)	Unknown)	Unknown)
FISCAL IMPACT - Local Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
SCHOOL DISTRICTS
Income-School Districts
Grants	Unknown	Unknown	Unknown
State Aid	Unknown	Unknown	Unknown
Total Income-School Districts	Unknown	Unknown	Unknown
FISCAL IMPACT - Local Government	FY 2000	FY 2001	FY 2002
(Continued)	(10 Mo.)
Cost-School Districts
Assessment Tests	($46,599)	($46,599)	($46,599)
Grant Match	(Unknown)	(Unknown)	(Unknown)
Reading and Remediation Programs	(Unknown)	(Unknown)	(Unknown)
Art, Music and Physical Education	(Unknown)	(Unknown)	(Unknown)
Course Material	($0 to	($0 to	($0 to
	$650,000)	$650,000)	$650,000)
ESTIMATED NET EFFECT ON
SCHOOL DISTRICTS	($46,599 to	($46,599 to	($46,599 to
	*Unknown)	*Unknown)	*Unknown)
*Could exceed $650,000 annually.
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.

DESCRIPTION

An Outstanding Schools Waiver would be presented to any school district meeting certain criteria.

State funds received by a school district for an approved gifted education program could be used to pay for the costs of direct instruction in foreign language to pupils in grades kindergarten through three.

The proposal states that no state agency, board or commission could establish a policy or rule requiring any person to obtain any state certificate pursuant to a public school program linking education and careers, including any school-to-work program, as a condition of employment. No state could establish a policy or rule requiring any employer to require such state certificate as a condition of employment. This would not affect or limit any state agency's authority regarding professional registration, licensing or issuance of professional certificates or limit or affect the authority of the State Board of Education to examine applicants and issue high school equivalency certificates.

DESCRIPTION (Continued)

The proposal would add definitions to the school aid foundation formula for "district's target rate" and "fiscal instructional ratio of efficiency". For line 14(b) the guaranteed tax base would be no greater than the guaranteed tax base used for the 1998-99 payment year. Numerous changes would be made to the definition of "operating levy for school purposes", including adding debt service and capital projects levies and increasing the maximum levy from $4.60 to $4.95 and deleting the exception regarding tax rate adjustments due to reassessments.

The proposal would delete section 163.015 regarding minimum operating levy of $2.75 required to receive more state aid than in the 1993-94 school year.

The proposal would allow any school district to create a committee to work with teachers and parental groups to provide youth-at-risk after school and summer programs to minors ages five through fourteen years old. Curriculum could be developed by teachers, parental groups and the committee. The committee could accept funds from any source for the programs.

DESE would provide a four-year competitive matching grant program to defray the costs of reading assessment.

Upon conclusion of the grant, DESE could reimburse the district for its match, with funds to be expended for professional development. Grants would be renewable for an additional four-year term. Any reimbursement of a district's match would be a one-time payment.

The State Board of Education would develop a list of recommended reading assessments for kindergarten through grade three pupils by July 1, 2000.

The State Board of Education would develop guidelines to apply reading assessment results to instructional programs and provide training for teachers to assist pupils identified as reading below grade level.

For any year in which more than 50% of third grade students in a school district perform at the lowest two levels of third grade communications arts assessment, the school board would redirect a percentage of state-level remedial reading funds that at least equals the percentage of third grade students performing at the lowest level of assessment, not resulting in a reduction of federal funds.

DESCRIPTION (Continued)

School districts could adopt a policy with regard to student promotion which could require remediation as a condition of promotion to the next grade level for any student failing to master skills and competencies for the grade level. School districts could also require parents to commit to conduct home-based tutorial activities.

Remediation could include, but would not necessarily be limited to, a mandatory summer school program focused on the areas of deficiency.

School districts providing remediation outside of the traditional school day could count extra hours of instruction in the calculation of average daily attendance.

Any student scoring at the lowest level of proficiency in any subject under the statewide assessment would be required to retake that assessment the following year. School districts would evaluate student progress toward proficiency after the initial assessment and report the progress in the annual report.

The State Board of Education would establish by rule a method for determining effectiveness of the remediation program.

The State Board of Education, beginning in the 2001 school year, would include the data reported as an element in identifying academically deficient schools and in the school accreditation process.

The proposal would allow any metropolitan school district with at least five percent shortage of certified teachers to apply to the Department of Elementary and Secondary Education for waivers to allow retired teachers to teach for up to two years without losing their retirement benefits. The retired teacher would not need to be in the teachers' salary scale. Retirement benefits of any such teacher would be increased. DESE would approve areas of education within which a shortage would exist.

No school district could require any art, music or physical education teacher to teach more than 600 students during a school term unless the district requested and received a written waiver from the State Board.

The proposal would require regular courses of instruction in the history of civil rights issues in America in all public and private schools in the state.

DESCRIPTION (Continued)

The proposal would require that any course materials and instruction relating to human sexuality and sexually transmitted diseases incorporate certain subjects, including abstinence and contraception.

The board would determine the specific content of the district's instruction in human sexuality and ensure that all instruction is age appropriate.

The school district would notify parents or guardians of the basic content of the instruction and the right to remove the student from any part of the instruction. The district would make all materials available for inspection.

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 Economic Development

Office of Administration

Linn State Technical College

Joint Committee on Public Retirement

Coordinating Board For Higher Education

Public School Retirement System

Department of Health

Jeanne Jarrett, CPA

Director

March 5, 1999