Page 1 of 2 LRC 2022-BR23-HB9
COMMONWEALTH OF KENTUCKY FISCAL NOTE STATEMENT
LEGISLATIVE RESEARCH COMMISSION
2022 R EGULAR SESSION
MEASURE
2022 BR NUMBER 23 HOUSE BILL NUMBER 9
TITLE AN ACT relating to educational opportunities, makin an appropriation therefor, and declaring an
emergency.
SPONSOR Representative Chad McCoy
FISCAL SUMMARY
STATE FISCAL IMPACT: YES NO UNCERTAIN
OTHER FISCAL STATEMENT (S) THAT MAY APPLY: ACTUARIAL ANALYSIS
LOCAL MANDATE CORRECTIONS IMPACT HEALTH BENEFIT MANDATE
APPROPRIATION UNIT(S) IMPACTED: Support Education Excellence in Kentucky (SEEK), Learning
and Results Services (LARS), Teachers' Retirement System (TRS)
FUND(S) IMPACTED: GENERAL ROAD FEDERAL RESTRICTED Various
FISCAL
ESTIMATES
2021-2022 2022-2023 2023-2024 ANNUAL IMPACT AT
FULL IMPLEMENTATION
REVENUES Indeterminable Indeterminable Indeterminable
EXPENDITURES Indeterminable Indeterminable Indeterminable
NET EFFECT (Indeterminable) (Indeterminable) (Indeterminable)
( ) indicates a decrease/negative
PURPOSE OF MEASURE: HB 9 amends various sections of KRS 160.1590 to 160.1599, the
public charter school statutes, to expand the list of charter school authorizers, amend the
application requirements, and establish an appeal process for charter school applicants.
HB 9 requires students attending charter schools to be included in the SEEK average daily
attendance count and establishes the mechanism for calculating and transferring the charter
school’s share of a district’s state education funds. The provisions in HB 9 require charter
schools also be eligible to receive local and federal funds.
The Kentucky Public Charter School Commission is established to consider applications,
authorize charter schools, and review appeals.
FISCAL EXPLANATION : There are various provisions in HB 9 that could impact state
funding. This fiscal note does not address potential cost increases to local school districts.
Students attending charter schools will be included in the average daily attendance data for the
purposes of receiving SEEK funds, including add-ons and transportation funds. However, it is Page 2 of 2 LRC 2022-BR23-HB9
unknown if any students would enroll in charter schools that are currently not enrolled in a
public school. Therefore, any additional costs to SEEK are indeterminable. Charter schools will
also be eligible to receive their proportional share of a school district’s other state education
funds, but there is no anticipated cost increase since the charter school would receive an
allocation of the current pool of funds.
The measure establishes the Kentucky Public Charter School Commission and requires the
commission to appoint an executive director. For a cost estimate, it is assumed the executive
director’s compensation would be approximately $100,000, plus benefits. This legislation allows
the commission to employ additional support staff but the compensation and number of staff are
unknown. The board members of the commission would receive per-diem and travel expenses on
meeting days, but these costs are estimated to be minor. The commission, as an authorizer,
would be eligible to receive up to three percent of a charter school’s funds and up to 25% of the
authorizing fee if they authorize a school on an appeal. However, it is unknown if these funds
would be sufficient to support the commission’s operations. Therefore, the cost to establish and
operate the Kentucky Public Charter School Commission is indeterminable.
The Kentucky Board of Education (KBE) would become an authorizer of charter schools and be
responsible for appeals. However, it is unknown how many applications would be received or the
number of appeals that would come to KBE. The Department of Education (KDE) might need to
hire additional staff due to the responsibilities assigned to them in HB 9. KDE has estimated the
annual staffing costs to be approximately $365,000.
HB 9 requires charter schools to participate in the state-sponsored health plan and state
administered retirement systems. The state pays, on behalf of local school districts, the employer
share for health insurance and the statutory employer contribution to TRS. The employer
contribution rate to TRS for new certified staff starting in January 2022 is 10.75% of their salary.
The employer contribution for health insurance, assuming the living well non-tobacco user rate
for single coverage is about $700 per month. The total cost to support these benefits for charter
school employees is indeterminable.
DATA SOURCE(S): LRC Staff, KDE
PREPARER: Seth Dawson NOTE NUMBER : 121 REVIEW: JAB DATE: 3/9/2022