This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0208 - Modifies powers of The Coordinating Board for Higher Education
SB 208 - Fiscal Note

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 670-02

BILL NO.: SCS For SB 208

SUBJECT: Education, Elementary and Secondary: Higher Education Programs

TYPE: Original

DATE: April 2, 1999


FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED FY 2000 FY 2001 FY 2002
None $0 $0 $0
Total Estimated

Net Effect on All

State Funds

$0 $0 $0



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 $0 $0 $0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials from the Coordinating Board For Higher Education (CBHE) made the following assumptions in estimating the proposal's fiscal impact:



(1) There is no fiscal impact associated with the changes to 161.097(1).

(2) The change to section 173.005.2(9) does not have a fiscal impact although it could seriously hamper the CBHE's ability to collect and analyze various data in accordance with its statutory responsibility, and compromise CBHE's ability to authorize independent institutions for federal Title IV student aid.

(3) There is no fiscal impact associated with the proposed section 173.005.2(10). As is evident in 173.005.2(3), the CBHE currently has no authority to restrict independent institutions from creating or modifying a course or program of study or adding a new location. Currently the CBHE only requests the opportunity to comment on proposed program changes. However, there could be additional long-term costs.

The CBHE also has no independent authority to restrict access to federal student financial aid programs. However the CBHE is the state authorizing agency for federal Title IV student aid The CBHE does have an institutional eligibility recertification process for the Gallagher grant program. There would be no direct fiscal impact related to the removal of this process. However, all financial oversight of the program with respect to the $13 million in state grant dollars flowing to independent sector students would be removed.



Officials from the Department of Elementary and Secondary Education (DESE) assume DESE's teacher certification section would need to add the following staff to conduct transcript analysis of an estimated 30,000 transcripts each year:

4 Supervisors ($47,028 each)

4 Program Specialist II's ($29,136 each)

2 Senior Secretaries ($24,228 each)

Additionally, DESE officials assume the IT section would need to develop and maintain a data processing system to handle record keeping.





ASSUMPTION (continued)

The Oversight Division assumes that current law (section 161.097, RSMo.) requires the State Board of Education to have established standards and procedures to evaluate all teacher training institutions for the approval of teacher education programs which would equal or exceed those of national or regional accrediting associations. Therefore, Oversight assumes the language in the proposal stating that the State Board would approve any teacher education programs of any institution defined in section 173.205, RSMo., could be done with existing resources.

FISCAL IMPACT - State Government FY 2000 FY 2001 FY 2002
(10 Mo.)
0 0 0
FISCAL IMPACT - Local Government FY 2000 FY 2001 FY 2002
(10 Mo.)
0 0 0
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.


DESCRIPTION

The State Board of Education would be required to approve teacher education programs of certain educational institutions.

The proposal would limit the duties and responsibilities of the CBHE by not allowing them to restrict any approved private institution of higher education from creating or modifying a course or program of study or adding a new location or from receiving state or federal student financial assistance.

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

Coordinating Board For Higher Education

Department of Elementary and Secondary Education



Jeanne Jarrett, CPA

Director

April 2, 1999