COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 1978-01

Bill No.: SB 637

Subject: Education, Elementary and Secondary; Elementary and Secondary Education Dept; Children and Minors

Type: Original

Date: March 11, 2003




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on

General Revenue

Fund

$0 $0 $0



ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on Other

State Funds

$0 $0 $0



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.

















ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Local Government $0 $0 $0




FISCAL ANALYSIS



ASSUMPTION



Officials from the Department of Elementary and Secondary Education indicated that this proposal would have no fiscal impact on their agency or on school districts.



FISCAL IMPACT - State Government FY 2004

(10 Mo.)

FY 2005 FY 2006
$0 $0 $0





FISCAL IMPACT - Local Government FY 2004

(10 Mo.)

FY 2005 FY 2006
$0 $0 $0



FISCAL IMPACT - Small Business



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







DESCRIPTION



According to current statute, a school district that has achieved provisional accreditation after having been declared unaccredited has no limit on the amount of time it may remain provisionally accredited. This proposal requires the State Board of Education to place a cap of no less than one and no more than two full school years on such districts to regain full accreditation or face lapse of district corporate structure.



The proposal also makes changes to the hearing that is required to be held in a district after it is declared unaccredited, by stating that the hearing must be held at least 60 days prior to the date

of lapse. A special administrative board, which may be appointed by the State Board of Education to monitor unaccredited districts, is also given standing to enjoin school board actions

that might result in waste of assets. The State Board of Education is given the option of permitting a lapsed district to continue to operate under its existing governance structure

pursuant to terms and conditions the board establishes.



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









Mickey Wilson, CPA

Director

March 11, 2003