COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 0873-03

Bill No.: SCS for SB 239

Subject: Education, Elementary and Secondary: Promotion of Elementary School Pupils

Type: Original

Date: February 16, 2001




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
General Revenue (Greater than $100,000) (Greater than $100,000) (Greater than $100,000)
State School Moneys $0 $0 $0
Total Estimated

Net Effect on All

State Funds

(Greater Than $100,000) (Greater Than $100,000) (Greater Than $100,000)



ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
Local Government ($500,000) ($500,000) ($500,000)

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 pages.

FISCAL ANALYSIS



ASSUMPTION



Officials from the Department of Elementary and Secondary Education (DESE) assume the proposal would create reading level assessments for public school students beginning in the 3rd grade. Remediation would be required if the pupil is determined to be deficient in reading skills. Additional costs would be incurred for development of a plan, remediation, and assessments that would continue until acceptable reading standards would be achieved. Assuming that districts would bear this cost, the fiscal impact to local districts of this provision would be expected to be in the area of $500,000.



DESE officials assume there could be some additional state aid going to districts due to a potential increase in summer school enrollments. On a statewide basis, the amount would be estimated to be in excess of $100,000 per year, but DESE officials indicated the precise amount could not be estimated. (For example 400 additional students would cause about $108,000 in additional aid.)



FISCAL IMPACT - State Government FY 2002 FY 2003 FY 2004
GENERAL REVENUE FUND
Cost - Increased Transfers to State School Moneys Fund (Greater than $100,000) (Greater than $100,000) (Greater than $100,000)
ESTIMATED NET EFFECT ON GENERAL REVENUE FUND (Greater than $100,000) (Greater than $100,000) (Greater than $100,000)
STATE SCHOOL MONEYS FUND
Income - Transfers from General Revenue Fund Greater than $100,000 Greater than $100,000 Greater than $100,000
Cost - Increased Distributions to School Districts (Greater than $100,000) (Greater than $100,000) (Greater than $100,000)
ESTIMATED NET EFFECT ON STATE SCHOOL MONEYS FUND $0 $0 $0


FISCAL IMPACT - Local Government FY 2002 FY 2003 FY 2004
SCHOOL DISTRICTS
Income - Increased State Aid for Summer School Greater than $100,000 Greater than $100,000 Greater than $100,000
Cost - Reading Improvement Plan Development, Remediation, Assessments ($500,000) ($500,000) ($500,000)
Cost - Summer School (Greater than $100,000) (Greater than $100,000) (Greater than $100,000)
ESTIMATED NET EFFECT ON SCHOOL DISTRICTS ($500,000) ($500,000) ($500,000)


FISCAL IMPACT - Small Business



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



DESCRIPTION



This proposal would replace section 167.645, RSMo, which forbids promoting any public school student reading at more than one grade level below the student's grade level, with a reading assessment and remediation program.



Methods of reading assessment would be determined by each school district. Each school district would administer a reading assessment to each student within 45 days of the end of each school year. Assessments would be required first to students seeking promotion to the third grade and repeated as necessary through the end of the eighth grade, with the process ending at the end of the ninth grade.



School districts would notify, in writing, any person having custodial care of a pupil for whom reading improvement plans would be established that the district had established a plan and that the parent or custodian of the pupil could participate in the implementation of the plan.



A student scoring proficient on the statewide assessment in communication arts would be considered meeting the reading standard.



Each school district would be required to offer summer school reading instruction to any student with a reading improvement plan. Districts may fulfill the requirement with neighboring districts.



The proposal contains an emergency clause.



This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. The proposal would not affect Total DESCRIPTION (continued)



State Revenue.



SOURCES OF INFORMATION



Department of Elementary and Secondary Education











Jeanne Jarrett, CPA

Director

February 16, 2001