OFFICE OF FISCAL ANALYSIS Legislative Office Building, Room 5200 Hartford, CT 06106 (860) 240-0200 http://www.cga.ct.gov/ofa sSB-1034 AN ACT CONCERNING MINORITY TEACHER RECRUITMENT AND RETENTION. As Amended by Senate "A" (LCO 8546) House Calendar No.: 542 Senate Calendar No.: 394 Primary Analyst: SB 5/21/21 Contributing Analyst(s): OFA Fiscal Note State Impact: None Municipal Impact: Municipalities Effect FY 22 $ FY 23 $ Various Local and Regional School Districts See Below See Below See Below Explanation The bill requires a portion of Alliance District funds (a component of the Education Cost Sharing grant for recipient towns) to be spent on minority teacher recruitment and retention. The bill requires, beginning in FY 22, the State Department of Education to annually withhold ten percent of each Alliance District’s increase (AD) in those funds (from FY 20), and the funds will be released to each town for residency program-related costs, including hiring and retention. If a board of education does not apply for some or all of the withheld funds, the town may experience a revenue reduction, but it is anticipated all affected towns will apply, given the bill’s mandate for these towns to participate in a minority teacher recruitment residency program. The amount withheld from each Alliance District in any year depends on each town’s change in Alliance District funding compared 2021SB-01034-R01-FN.DOCX Page 2 of 2 to FY 20. These funds are anticipated to total approximately $7.5 million across Alliance Districts in FY 22 under the current ECS formula, with a median amount per affected Alliance District of approximately $240,000. The lowest amount is anticipated to be approximately $10,000 and the highest, nearly $1.4 million. For FY 22, twenty-five of the 33 Alliance Districts will have increases in ECS Alliance District funds since FY 20 and therefore will be impacted by this bill. Because the withholding under the bill is a percentage of the increase in ECS funds, the amount withheld will grow annually until FY 28, as ECS grants to impacted towns rise under the ECS formula phase-in. The bill also requires SDE to administer a minority teacher candidate certification, retention, or residency year program, which is not anticipated to result in a fiscal impact to the state. Senate "A" makes various procedural changes that do not result in a fiscal impact. The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation. The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.