COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 3287-02
Bill No.: SB 923
Subject: Education, Elementary and Secondary
Type: Original
Date: February 16, 2004
FISCAL SUMMARY
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on General Revenue Fund |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on Other State Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Local Government | $0 | $0 | $0 |
ASSUMPTION
Officials from the Department of Elementary and Secondary Education (DESE) state this proposal amends the calculation of the number of eligible pupils on which a district may be paid. The eligible pupil number used in the foundation formula will be the summer school average daily attendance (ADA) for the current year, doubled, and added to the highest average daily attendance of the regular school term for the current year, first preceding or second preceding year. Currently, a district could choose to eliminate its summer school program in the current year but still be paid in the foundation formula for summer school the district had two years prior. Consequently, districts may use money generated from a summer school program intended to pay for the summer school program to instead assist funding the regular school term. The proposal will insure that all districts receive funding for their most recent summer school. If the district opts to eliminate summer school, it will only be paid on the regular term ADA.
There is no state cost to this proposal as the proposed change does not increase the number of eligible pupils on which districts may be paid through the foundation formula. There is the possibility of some state savings if districts choose to discontinue providing educational opportunities in the summer. However, potential savings cannot be determined as the number of districts who may choose to eliminate summer school in the summer of 2004 and beyond is not known. ASSUMPTION (continued)
Oversight assumes any moneys saved by districts not choosing to offer summer school would be distributed among the schools via the foundation formula. Oversight calculated the difference in summer school students between school years 2001-2002 and 2002-2003, based on districts that appeared to discontinue summer school programs or experienced a decrease by over fifty percent. The calculation was based on the 2002-2003 payment per eligible pupil, not including line 14 per eligible pupil of the foundation formula. The calculation also did not factor in Prop C funds. Based on these calculations, there would have been approximately $5,000,000 available for redistribution.
| FISCAL IMPACT - State Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This proposal asserts that, beginning with the 2004-2005 school year, the summer school add-on for eligible pupils (i.e. double counting of summer school students) shall only include those eligible pupils that attended summer school in the immediately preceding year.
Further, the proposal specifies that, should a school district either: (1) discontinue its summer school program, or (2) experience a decrease by over fifty percent from the previous year in its summer school enrollment, the school district shall only be entitled to receive state aid for the summer school add- on based on the actual summer school attendance from the current year.
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
February 16, 2004