SB 0457 - Fiscal Note

Fiscal Note - SB 0457 - Allows University of MO - Rolla to establish charter school

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 1940-01

BILL NO.: SB 457

SUBJECT: Education, Elementary and Secondary: Charter Schools

TYPE: Original

DATE: March 2, 1999

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
State School Moneys	$0	($0 to Unknown)	($0 to Unknown)
Total Estimated Net Effect on All State Funds	$0	($0 to *Unknown)	($0 to *Unknown)

*Could exceed $100,000 annually.

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 3 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials from the Coordinating Board For Higher Education (CBHE) assume the proposal would have no fiscal impact on the CBHE. They assume it could impact the University of Missouri in Rolla; although, the extent or nature of the impact is unknown.

Officials from the University of Missouri System assume the University of Missouri-Rolla (UMR) would not incur significant costs as the sponsor of a charter school. However, since the UMR does not have a College of Education, it could need the assistance of either the University of Missouri-St. Louis or the University of Missouri-Columbia in any such endeavor.

Officials from the Department of Elementary and Secondary Education (DESE) state they are required to evaluate charter schools under S.B. 781 passed during the 1998 legislative session. If the University of MO - Rolla would begin a charter school, then DESE would be required by law to evaluate this charter school. DESE officials assume this evaluation would be conducted using a contractor and would first be done in FY 2001.

The FY 2000 unfunded request amount of $125,000 contained in DESE's budget book (pg. 601) was boosted by a 3% inflation factor for FY 2001 and FY 2002 to arrive at estimated evaluation costs of $128,750 and $132,613 respectively. The Oversight Division assumes this cost is a result of existing law permitting charter schools and has therefore excluded the cost from the fiscal impact for this proposal.

Also, the formula would fund charter school pupils. Since this bill would increase the chances of a charter school getting off the ground, there is an increased chance for the formula to require a funding increase to cover the costs of charter school pupils. This would result from students transferring from private schools to charter schools. The amount of this increased cost is unknown but is likely to exceed $100,000 statewide assuming several charter schools would begin operation in FY 2001. This would be an impact to the State Schools Monies Fund.

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
STATE SCHOOL MONIES FUND
Cost-Department of Elementary
and Secondary Education
State Aid to Charter School	$0	($0 to	($0 to
		*Unknown)	*Unknown)
*Could exceed $100,000 annually.
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

Charter schools could be operated in any county of the second class which contains a campus of the state university and such schools would be sponsored by the campus of that state university.

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

Coordinating Board For Higher Education

University of Missouri

Jeanne Jarrett, CPA

Director

March 2, 1999