SB 0472 - Fiscal Note

Fiscal Note - SB 0472 - Makes technical revisions to education law

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 1925-02

BILL NO.: Perfected SB 472

SUBJECT: Education, Elementary and Secondary: Technical Revisions

TYPE: Original

DATE: April 8, 1999

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
General Revenue	($4,200,000)	($4,200,000)	($4,200,000)
Total Estimated Net Effect on All State Funds	($4,200,000)	($4,200,000)	($4,200,000)

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	Less Than $100,000	Less Than $100,000	Less Than $100,000

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages.

FISCAL ANALYSIS

ASSUMPTION

Academic Performance Standards

Officials from the Department of Elementary and Secondary Education (DESE) stated that currently assessment tests are done on students in grades 3, 7 and 11. DESE officials assume students would need to be tested in order to assess their reading ability. DESE officials assume tests would start with the third grade; 60,000 students per grade level; and seven additional grades to test to assess reading abilities. Therefore, 60,000 students x 7 additional tests x $10 per test = $4.2 million annually. DESE officials assume the state would pay the testing costs since they would be state mandated.

Technical Revisions

Officials from the Department of Social Services, Department of Health, Office of State Courts Administrator and Coordinating Board For Higher Education assume the proposal would result in no fiscal impact to the agencies.

Officials from the Department of Elementary and Secondary Education (DESE) assume the proposal would result in no significant impact to DESE or local public school districts other than technical revisions to education laws.

Tuition

Officials from the Department of Elementary and Secondary Education (DESE) assume the proposal would result in no fiscal impact to the agency. However, DESE officials assume the proposal would result in a negligible effect on the distribution of state aid payments attributable as certain eligible districts would choose to participate in the program and allow children of employees of the district to attend on a tuition basis. Total state aid payments would not change however, and there would be no savings to the State School Monies Fund. At the school district level, DESE assumes the proposal would only affect certain school districts. The net potential impact is not known, but it is believed to be less than $25,000 for eligible districts. School districts could also have a slight increase in income resulting from tuition paid by the pupil attending school out of the district of residence. However, this increase would be expected to be less than $100,000 annually.

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
GENERAL REVENUE FUND
Cost-Department of Elementary
and Secondary Education
Testing	($4,200,000)	($4,200,000)	($4,200,000)
FISCAL IMPACT - Local Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
SCHOOL DISTRICTS
Income-School Districts
Tuition	Less Than	Less Than	Less Than
	$100,000	$100,000	$100,000
A redistribution of $0 to $25,000 in state aid to school districts would occur as districts participate in the program.
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.

DESCRIPTION

At least one of the academic performance standards adopted by the State Board of Education would require that no student would be promoted to a higher grade level unless that student would have a reading ability at or above one grade level below the student's grade level.

The proposal makes numerous technical revisions to education laws, including seven-director school districts, changing school district names, allowable indebtedness, destruction of bonds, duplicate checks, sales of school lunches, superintendent bonds, principal probation, school buildings, physical education and physiology courses, reorganization of school districts, school holidays, school fraternities and sororities.

If a pupil attends school in a school district other than the district of residence, and the pupil's parent teaches in or is a regular employee of the district of attendance, then the district of attendance would allow the pupil to attend school upon payment of tuition in the same manner as other pupils would. The provision would only apply to districts which have an enrollment in excess of 13,000 pupils and not in excess of 15,000 pupils and located in a first class county with

DESCRIPTION (Continued)

a charter form of government with a population in excess of 600,000 persons and not in excess of 900,000.

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 Health

Department of Social Services

Office of State Courts Administrator

Coordinating Board For Higher Education

Jeanne Jarrett, CPA

Director

April 8, 1999