SB 0425 - Fiscal Note

Fiscal Note - SB 0425 - Establishes program for remediation of student academic deficiencies

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 1847-03

BILL NO.: Perfected SCS For SB 425

SUBJECT: Education, Elementary and Secondary: Remediation

TYPE: Original

DATE: March 29, 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)

*Expected to exceed $100,000 annually.

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 5 pages.

FISCAL ANALYSIS

ASSUMPTION

Department of Elementary and Secondary Education (DESE) officials assume one FTE Supervisor ($47,028) and one FTE Senior Secretary ($24,228) would be needed to handle the student retesting processes as well as the competitive grants program. They also assume a .5 FTE Program Specialist II ($14,568) would be needed to develop, apply, analyze and report on the measures of effectiveness of the remediation programs established by the local school districts. 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.

DESE officials assume the IT section would be required to develop and maintain software. They estimate this cost would be $8,000 the first year using current staff. They assume maintenance costs would run approximately 25% of the develop costs for subsequent years ($8,000 x 25% = $2,000).

Assuming the General Assembly would make an appropriation for the matching grant program, DESE officials assume there would be increased state monies going to school districts that would be successful in applying for grants. DESE assumes the amount of this local assistance would depend on the amount appropriated by the General Assembly for this purpose and assumes this would be an unknown cost expected to exceed $100,000 annually.

DESE and school districts would experience additional costs as students would be required to retake tests. For FY 2000, this amount is estimated to be $8.10 per test at the state level and $1.90 per test at the school district level. Therefore, the state would pay $8.10/test x 24,526 students = $198,661, and school districts would pay $1.90/test x 24,526 students = $46,599. This amount would be expected to exceed $100,000 at the state level for FY 2001 and FY 2002 and remain below $100,000 for school districts statewide for FY 2001 and FY 2002. The Oversight Division has included state costs of $198,661 and school district costs of $46,599 for each of the fiscal years, assuming the same level of retesting.

The Oversight Division assumes the additional one-time payments to school districts equal to their contribution to the original grant would be a redirection of DESE's existing professional development grant funds. Oversight has also included an unknown cost to DESE and unknown income to school districts for remediation 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.

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	($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
Cost-School Districts
Assessment Tests	($46,599)	($46,599)	($46,599)
Grant Match	(Unknown)	(Unknown)	(Unknown)
Remediation Programs	(Unknown)	(Unknown)	(Unknown)
ESTIMATED NET EFFECT ON
SCHOOL DISTRICTS	($46,599 to	($46,599 to	($46,599 to
	*Unknown)	*Unknown)	*Unknown)
*Expected to exceed $100,000 annually.
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.

DESCRIPTION

The Department of Elementary and Secondary Education (DESE) would provide four-year competitive matching grants to school districts or school buildings to support the cost of reading assessment and teacher and administrator training.

Qualifying school districts would receive an additional one-time payment equal to its contribution to the original grant. The additional payment would be expended for professional development.

DESE would determine the application process and the criteria for additional payments.

School districts could adopt a policy regarding student promotion which could require remediation as a condition of promotion to the next grade level. The policy could require parents to commit to conduct home-based tutorial activities with their children.

Remediation could include a mandatory summer school program and could include other activities conducted by the school district outside the regular school day.

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

Students scoring at the lowest level of proficiency under the state-wide assessment would be required to retake the assessment the following year. School districts would report the progress in the annual report.

The State Board of Education would establish a method for determining the effectiveness of assisting students.

Beginning in the 2001 school year, the State Board would include the data as an element in identifying academic deficient schools and in the school accreditation process.

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

Jeanne Jarrett, CPA

Director

March 29, 1999