Fiscal Note
BILL # SB 1456 TITLE: CTEs; in-demand programs; funding
SPONSOR: Bennett STATUS: Senate Engrossed
PREPARED BY: Gordon Robertson
Description
The bill would require the Office of Economic Opportunity (OEO) to develop a state-wide in-demand education list for the
purposes of Career and Technical Education District (CTED) funding for 9
th
grade students and students enrolled in the
year immediately following high school graduation. OEO currently develops multiple regional in-demand lists for the same
purpose. The bill would modify the enrollment requirements for 9
th
grade CTED students such that these students would
be included in Average Daily Membership (ADM) counts if they are in enrolled in a statewide in-demand program in 9
th
grade and continue in the CTED in 10
th
grade.
Estimated Impact
Based on data from the Department of Education (ADE), we estimate the bill would increase General Fund K-12 Basic
State Aid expenses by $7.7 million annually beginning in FY 2025. The actual impact could be higher or lower than our
estimate depending on the share of 9
th
grade students and students enrolled after graduation who would be counted in
ADM under a statewide in-demand list, the contents of which are uncertain.
Analysis
ADE reports that in FY 2024, there are 33,270 9
th
grade students enrolled in a CTED. Given that these students generally
attend a CTED on a part-time basis, these 33,270 students would only generate ADM of 6,732. Under current law,
however, the actual 9
th
grade ADM included in Basic State Aid calculations is lower than 6,732 due to 2 additional
statutory limitations that apply to funding such students. To be included in ADM counts, ADE interprets current statute to
require a 9
th
grader to:
• Be enrolled in a CTED program that, at the time they enroll, is included in the "in-demand education" list for their
region that is published by OEO.
• Continue in the CTED until at least the 40
th
day of their 11
th
grade year.
When factoring in these requirements, CTED students who reached their 40
th
day of 11
th
grade this year and were
enrolled in an in-demand program in 9
th
grade generated fundable ADM of 1,551 during the current school year, for a
total cost of $6.9 million. Under the bill, to be included in ADM counts, 9
th
grade students would instead be required to:
• Be enrolled in a CTED program that, at the time they enroll, is included in a statewide "in-demand education" list.
• Continue in the CTED until their 10
th
grade year.
ADE estimates that funding students under these new requirements would cost $14.6M beginning in FY 2024, or $7.7M
above current law. The department's estimates assume that total 9
th
grade ADM would increase from 1,159 under current
law to 2,451 under the bill, or an increase of 1,292, including:
(Continued) - 2 -
• An increase of 193 ADM, or $1.2 million, to require that 9
th
graders only continue in a CTED until 10
th
grade instead of
11
th
grade.
• An increase of 1,099 ADM, or $6.5 million, to expand the list of fundable 9
th
grade CTED programs to include
programs on a statewide list developed by OEO instead of a regional list.
ADE's estimate assumes that the new statewide in-demand list would include all regional in-demand programs. Should a
statewide in-demand list exclude some programs otherwise found on a regional in-demand list, the actual impact of the
change to a statewide in-demand list could be lower than estimated.
The bill would also allow students enrolled in a CTED in the year after graduation to generate ADM only if they are
enrolled in a program on the statewide "in-demand education" list. We lack sufficient information to estimate the cost of
this relatively small population being funded under a statewide list instead of regional lists.
Local Government Impact
None
3/13/24