LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7495 NOTE PREPARED: Feb 4, 2025
BILL NUMBER: HB 1498 BILL AMENDED: Jan 30, 2025
SUBJECT: School Accountability.
FIRST AUTHOR: Rep. Behning BILL STATUS: As Passed House
FIRST SPONSOR: Sen. Deery
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: This bill repeals certain provisions regarding statewide assessment scores and the
establishment of categories or designations of school performance. The bill requires the State Board of
Education to establish a new methodology for designating school performance. It extends the expiration of
certain provisions regarding the posting of school information. It also provides that the proposals to align
diploma waiver statutes with new diploma requirements may include a proposal to eliminate diploma
waivers.
Effective Date: July 1, 2025.
Explanation of State Expenditures: School Accountability Grades: Current law requires the State Board
of Education (SBOE) to assign schools an accountability grade, although SBOE has been statutorily required
to assign schools a “null” or “no letter grade” since FY 2020. The bill requires SBOE to assign schools a
“null” or “no letter grade” in FY 2025, extends a requirement for the Department of Education (DOE) to rank
schools based on their student assessment results by one year, and requires SBOE to establish a new
methodology framework for assigning schools an “A” through “F” accountability grade beginning in FY
2026. This represents a workload increase for the SBOE and DOE that is within the agencies’ routine
administrative functions and should be able to be implemented with no additional appropriations, assuming
near customary agency staffing and resource levels.
Charter and Innovation Network School Grant: The bill could increase the number of charter schools eligible
to receive a Charter and Innovation Network School Grant in FY 2025, which would increase state
expenditures. Beginning in FY 2026, the bill would have an indeterminable impact on the number of charter
schools eligible to receive a grant dependent upon the grades that would be assigned under the updated
accountability system. Lower school grades would result in a potential state expenditure decrease related to
Charter and Innovation Network School Grants.
Additional Information - Charter and Innovation Network School Grant: The Charter and Innovation
Network School Grant awards eligible charter schools $1,400 per ADM. Under current law, charter schools
HB 1498 1 that receive a “D” or “F” grade are not eligible for the Charter and Innovation Network School Grant unless
one of the following applies:
1) The school has been operating for fewer than three years
2) A majority of the school’s students have developmental, intellectual, or behavioral challenges
3) The school receives the same or better accountability grade as the nearest non-charter public
school that teaches the same grades of students as the charter school.
Explanation of State Revenues:
Explanation of Local Expenditures: Current statute requires public schools, until CY 2026, to post onto
their website certain information provided by DOE regarding their student assessment results. Provisions in
this bill extend this requirement by one year, until the beginning of CY 2027.
Explanation of Local Revenues: Charter and Innovation Network School Grant: Beginning in FY 2026,
the bill’s provisions may reduce the number of charter schools eligible to receive a Charter and Innovation
Network School Grant. [See Explanation of State Expenditures.]
State Agencies Affected: State Board of Education.
Local Agencies Affected: Public schools.
Information Sources:
Fiscal Analyst: Kelan Fong, 317-232-9592.
HB 1498 2