SB 0958 - Fiscal Note

Fiscal Note - SB 0958 - Revises Special Education Due Process Hearing Procedures

L.R. NO.  3565-01
BILL NO.  SB 958
SUBJECT:  Schools:  Handicapped
TYPE:     Original
DATE:     March 21, 1996



                              FISCAL SUMMARY

                    ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED               FY 1997         FY 1998         FY 1999

General Revenue           ($76,400)       ($76,400)       ($76,400)

Total Estimated
Net Effect on All
State Funds               ($76,400)       ($76,400)       ($76,400)


                   ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED               FY 1997         FY 1998         FY 1999

None                             $0              $0              $0

Total Estimated
Net Effect on All
Federal Funds                    $0              $0              $0


                    ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED               FY 1997         FY 1998         FY 1999

Local Government            $44,800         $44,800         $44,800


                              FISCAL ANALYSIS

ASSUMPTION

Based on a response to a similar proposal (HB 1376), officials from the
Department of Social Services assume the proposal would have no fiscal impact
on them because when youth are in custody of the Division of Youth Services,
parental consent is not needed to evaluate, diagnose or place a disabled
child.  In the unlikely event of a hearing, any associated costs could be
absorbed in the division's budget.

Officials from the Office of State Courts Administrator assume the proposal
would have no fiscal impact on them.

Based on a response to a similar proposal, officials from the Office of
Administration- Administrative Hearing Commission assume the proposal would
have no fiscal impact on them.

Officials from the Attorney General's Office assume the proposal would have
no fiscal impact on them.

Officials at the Department of Elementary and Secondary Education (DESE)
assume the State Board of Education would incur additional expenses for
mediation and due process hearings.

     Assume 14 hearings per year based on prior experience.  Assume each
     hearing would last two days.

    Chairperson cost would be comparable to current cost for attorney, no
     new cost.
    Two panel members would receive $300 per hearing in compensation and
     $300 per hearing in expenses for a total of $600 per hearing for 14
     hearings per year:  2 x $600 x 14 = $16,800
    Court reporter fees would be $2,000 per hearing:  $2,000 x 14 = $28,000
    Total annual hearing costs:  $28,000 + $16,800 = $44,800

     Assume 42 mediations per year:


    $500 cost per session:  $500 x 42 = $21,000
    $300 expenses for mediator:  $300 x 42 = $2,600
    Annual cost of mediator training estimated at $8,000
    Total annual mediation costs:  $21,000 + $2,600 + $8,000 = $31,600

DESE assumes the proposal would result in minimal fiscal impact to the school
districts.  On the average, they state that school district would be impacted
less than $500 per year.

The Oversight Division assumes that under current law the local school boards
administer the hearings.  Therefore, shifting the responsibility to the State
Board of Education would result in a savings to the local school districts,
for hearing costs.


FISCAL IMPACT - State Government    FY 1997    FY 1998    FY 1999
                                   (10 Mo.)
GENERAL REVENUE FUND

Cost-Department of Elementary and Secondary
Education
  Hearings/Mediation Costs        ($76,400)  ($76,400)  ($76,400)


FISCAL IMPACT - Local Government    FY 1997    FY 1998    FY 1999
                                   (10 Mo.)
Savings-School Districts
  Hearing Costs                     $44,800    $44,800    $44,800


DESCRIPTION

The proposal would enable the State Board of Education to empower a
three-member panel hearing, as opposed to the school district, under current
law.  The proposal would allow either party to request a due process hearing.
The chairperson of the panel would be an attorney.

At any hearing, the parent or guardian would be entitled to be accompanied
and advised by counsel and by individuals with knowledge of children with
disabilities; present evidence and confront, cross-examine, and compel the
attendance of witnesses; prohibit the introduction of any evidence not
disclosed at least five days before the hearing; obtain record of the
hearing; and obtain written findings of fact and decision.  Parents would
have a right to have the child present at the hearing and to have a public
hearing.

Whenever a hearing is requested, parents would be offered an opportunity for
mediation at no cost to the parent or guardian and the school district.

This legislation is federally mandated under the Individuals With
Disabilities Education Act (IDEA), 20 U.S.C. Section 1400.  It 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 Social Services
Office of State Courts Administrator
Office of Administration-Administrative Hearing Commission
Attorney General's Office