LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7495 NOTE PREPARED: Mar 25, 2025
BILL NUMBER: HB 1498 BILL AMENDED: Mar 20, 2025
SUBJECT: School Accountability.
FIRST AUTHOR: Rep. Behning BILL STATUS: As Passed Senate
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: The State Board of Education (SBOE)
and the Department of Education (DOE) will experience a workload increase to fulfill the bill’s school A-F
accountability grade provisions. This includes a requirement for SBOE to establish a new methodology
framework for assigning schools an A-F accountability grade beginning in FY 2026. The bill’s requirements
are 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: Eligibility requirements to receive a Charter and Innovation
Network School Grant is partially dependent on a school’s A-F accountability grade received in the previous
year. A provision in the bill requiring SBOE to assign a “null” or “no letter grade” in FY 2025 could increase
Charter and Innovation Network School Grant expenditures in FY 2026 if the previous year’s null grade
increases the number of schools eligible for the grant. Beginning in FY 2027, the bill would have an
indeterminable impact on state expenditures dependent on how schools are graded under SBOE’s updated
accountability system prescribed in the bill, compared with the agency’s existing A-F grading methodology.
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
that receive a “D” or “F” grade are not eligible for the Charter and Innovation Network School Grant unless
one of the following applies:
HB 1498 1 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: The bill’s provisions may
increase the number of charter schools eligible to receive a Charter and Innovation Network School Grant
in FY 2026. Beginning in FY 2027, the bill will have an unknown impact on 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