SB 25-200 Fiscal Note Legislative Council Staff Nonpartisan Services for Colorado’s Legislature SB 25-200: DYSLEXIA SCREENING AND READ ACT REQUIREMENTS Prime Sponsors: Sen. Kolker; Mullica Rep. Hamrick; Soper Published for: Senate Education Drafting number: LLS 25-0590 Fiscal Analyst: John Armstrong, 303-866-6289 john.armstrong@coleg.gov Version: Initial Fiscal Note Date: March 27, 2025 Fiscal note status: The fiscal note reflects the introduced bill. Summary Information Overview. The bill makes several changes to the Colorado Reading to Ensure Academic Development (READ) Act. Types of impacts. The bill is projected to affect the following areas on an ongoing basis: Minimal State Workload School Districts Appropriations. No appropriation is required. Table 1 State Fiscal Impacts Type of Impact Budget Year FY 2025-26 Out Year FY 2026-27 State Revenue $0 $0 State Expenditures $0 $0 Transferred Funds $0 $0 Change in TABOR Refunds $0 $0 Change in State FTE 0.0 FTE 0.0 FTE Page 2 March 27, 2025 SB 25-200 Summary of Legislation The bill makes several changes to early literacy education through the Colorado Reading to Ensure Academic Development (READ) Act. Individualized Readiness Plans Current law requires that public schools and districts ensure that each preschool and kindergarten student is assessed to determine the child’s readiness for reading instruction, which must include a reading deficiency screening. The bill allows but does not require that schools and districts assess for reading deficiencies and implement an individualized readiness plan for students identified with a reading deficiency. Identification of Reading Deficiencies The bill expands the criteria for determining if a child has a reading deficiency. Teachers may conclude that a student has a reading deficiency if they receive certain assessments, relevant demographic information, educational histories, or errors in assessments. The bill requires teachers to evaluate if this information includes any evidence of dyslexia and to discuss this evidence with the child’s parent or guardian. Dyslexia Screening Beginning in the 2026-27 school year, the bill requires school districts to annually screen students in Kindergarten through 3 rd grade for dyslexia during a required reading assessment. The bill specifies minimum requirements and risk factors that must be identified for these screenings. If symptoms of dyslexia are identified, teachers must administer additional tests as appropriate, and implement an individualized readiness plan. State Board Requirements The bill requires the State Board of Education to adopt rules which expand the minimum reading competency skill levels to include oral skills, oral reading fluency, encoding and word decoding. The state board must also ensure that interim reading assessments meet certain specified criteria. State Expenditures Department of Education The Colorado Department of Education (CDE) and the State Board of Education will update guidance documents related to the READ Act, review reading assessments to include new sections for dyslexia screening, and adopt the new rules required by the bill. This additional workload is minimal and can be accomplished within existing appropriations. Page 3 March 27, 2025 SB 25-200 Department of Early Childhood Similar to the CDE, the Department of Early Childhood will update its reading assessments and collaboration with the CDE to comply with the bill’s new requirements. This work is estimated to be minimal. School District School districts, boards of cooperative services, and district and institute charter schools will change their reading assessments to screen for dyslexia and follow the additional requirements adopted through state board of education rulemaking. If schools identify more students with developmental disabilities as a result of these screenings, they may incur additional revenues and expenditures through federal disability funds and their associated expenditures for additional instruction. Effective Date The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming no referendum petition is filed. State and Local Government Contacts Early Childhood Education The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each fiscal year. For additional information about fiscal notes, please visit the General Assembly website.