SB 0789 - Fiscal Note

Fiscal Note - SB 0789 - Charter Schools Act

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 3399-01

BILL NO. SB 789

SUBJECT: Education, Elementary and Secondary: Charter Schools Act

TYPE: Original

DATE: February 10, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
General Revenue	(UNKNOWN)	(UNKNOWN)	(UNKNOWN)
Total Estimated Net Effect on All State Funds	(UNKNOWN)	(UNKNOWN)	(UNKNOWN)

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
None	$0	$0	$0
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Local Government	(UNKNOWN)	(UNKNOWN)	(UNKNOWN)

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials from the City of Kansas City assume the proposal would result in no fiscal impact to the city.

Officials from the Public School Retirement System assume the proposal would not amount to a substantial proposed change as defined in section 105.660, RSMo.

Officials from the University of Missouri assume the university would only incur costs if they were a sponsor of a charter school. They assume these costs would be minimal administrative costs and would be necessary only for general oversight and evaluation.

Officials from the Department of Elementary and Secondary Education (DESE) assume for students who are currently in the public school system, charter schools, in the aggregate, would not cost the state any additional money but would redistribute state aid among school districts. DESE assumes there would be a potential that some private or parochial schools would become charter schools. There are about 105,000 students in such schools. The average distribution for FY 1999 on line 1 of the foundation formula is $3,837 per eligible pupil. The potential cost of this provision could not be determined by DESE.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
GENERAL REVENUE FUND
Cost-College or University
Charter Schools	(UNKNOWN)	(UNKNOWN)	(UNKNOWN)
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
Cost-School Districts, Community
Colleges, Cities
Charter Schools	(UNKNOWN)	(UNKNOWN)	(UNKNOWN)

FISCAL IMPACT - Small Business

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

DESCRIPTION

The proposal would define a charter school as an independent, publicly supported school. Charter schools could be established in a metropolitan school district or urban school district containing most or all of a city with a population greater than three hundred fifty thousand inhabitants. They could be sponsored by the school board, a four-year college or university, a community college or the mayor of the city of the district's location. No sponsor would receive any fee for the consideration of the charter. For school districts with an average four-year persistence to graduation rate less than sixty-five percent, charter schools could be sponsored by the school board or a four-year college or university. For school districts with an average four-year persistence to graduation rate of at least sixty-five percent for the three immediately preceding school years, charter schools could be sponsored by the school board of the district.

The charter school would be a nonprofit corporation.

The proposal includes requirements of the charter, including a mission statement, organizational structure and bylaws of the governing body. After approval of the charter by the sponsor, it would be submitted to the State Board of Education.

The sponsor, governing board and staff of the charter school would jointly review the school's performance, management and operations at least once every two years. A sponsor could revoke a charter at any time for a breach of provisions of the charter.

Pupils enrolled in a charter school would be included in pupil enrollment of the school district within which each pupil resides, except that payment of state aid would be made by DESE to the charter school attended and not made to the pupil's district of residence. The pupil's district of

residence would pay to the charter school the product of the equalized, adjusted operating levy for school purposes times the guaranteed tax base per eligible pupil less the amount paid by DESE to the charter school. The district of residence would also pay to the charter school any

other federal or state aid the district would receive on account of such pupil.

The charter school could contract with the local school board or any other entity for services.

A charter school would not be eligible for state transportation aid. A school district would provide transportation to pupils attending a charter school and obtain transportation aid.

A charter school could not charge tuition or impose fees that a school district is prohibited from imposing. The governing body of a charter school would be authorized to accept grants, gifts, or donations.

DESCRIPTION (Continued)

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

City of Kansas City

University of Missouri

Southwest Missouri State University

Public School Retirement System

NOT RESPONDING: St. Louis Public Schools, Kansas City School Board, City of St. Louis, Truman State University, Attorney General's Office

Jeanne Jarrett, CPA

Director

February 10, 1998