COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:3294H.02I Bill No.:HB 1753 Subject:Education, Elementary and Secondary; Department of Elementary and Secondary
Education; Mental Health; Department of Mental Health
Type:Original Date:March 15, 2022Bill Summary:This proposal authorizes pilot recovery high schools.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on General
Revenue $0$0$0
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 3294H.02I
Bill No. HB 1753
Page 2 of
March 15, 2022
JLH:LR:OD
ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on FTE 000
☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025
Local Government
$0 or
Unknown to
(Unknown)
$0 or
Unknown to
(Unknown)
$0 or
Unknown to
(Unknown) L.R. No. 3294H.02I
Bill No. HB 1753
Page 3 of
March 15, 2022
JLH:LR:OD
FISCAL ANALYSIS
ASSUMPTION
Section 167.850 - Recovery High Schools
Officials from the Department of Elementary and Secondary Education and the Department
of Mental Health each assume the proposal will have no fiscal impact on their respective
organizations. Oversight does not have any information to the contrary. Therefore, Oversight
will reflect a zero impact in the fiscal note for these agencies.
Oversight received no responses from school districts estimating the fiscal impact of this
proposal, and presents this fiscal note on the best current information available. Upon the receipt
of additional responses, Oversight will review to determine if an updated fiscal note should be
prepared and seek the necessary approval to publish a new fiscal note.
According to the National Institute on Drug Abuse (NIDA), 8.5 percent of Americans needed
treatment for a problem related to illicit drug or alcohol use in 2014.
Oversight assumes if 8.5 percent of the 4,043 students currently enrolled in the Kansas City
Public School District (grades 9 through 12) needed substance use treatment, this could result in
approximately 344 students being eligible to attend a recovery high school. Oversight assumes
this number could be higher as non-resident students are also eligible to attend.
Based on the study, Recovery High Schools: A Descriptive Study of Programs and Students
Oversight notes students were primarily referred to recovery high schools by treatment
programs, parents and the juvenile justice system. Of the schools in the study, most had small
enrollments ranging from 12 to 25 students with a median capacity of 35 students. The study
indicated students reported a reduction in the use of drugs, an increase in attendance and a
reduction in repeated problems with the law.
Oversight assumes this proposal states the sending district of an eligible student shall pay tuition
to the recovery high school. However, public schools may not see a 1:1 reduction in the costs
associated with those students transferring out. Oversight also notes that such students
recovering from substance use or dependency may not regularly attend school, or may require
more expensive attention from school. Because there are no responses, and several factors that
may save or cost school districts or recovery high schools, this note will show an impact ranging
from a unknown savings to an unknown cost net direct fiscal impact to school districts and
recovery high schools.
Oversight notes the proposal is permissive, therefore Oversight will range the fiscal impact from
$0 (a recovery high school is not established) to the range of potential fiscal impact. L.R. No. 3294H.02I
Bill No. HB 1753
Page 4 of
March 15, 2022
JLH:LR:OD
Rule Promulgation
Officials from the Joint Committee on Administrative Rules assume this proposal is not
anticipated to cause a fiscal impact beyond its current appropriation.
Officials from the Office of the Secretary of State (SOS) note many bills considered by the
General Assembly include provisions allowing or requiring agencies to submit rules and
regulations to implement the act. The SOS is provided with core funding to handle a certain
amount of normal activity resulting from each year's legislative session. The fiscal impact for
this fiscal note to the SOS for Administrative Rules is less than $5,000. The SOS recognizes that
this is a small amount and does not expect that additional funding would be required to meet
these costs. However, the SOS also recognizes that many such bills may be passed by the
General Assembly in a given year and that collectively the costs may be in excess of what the
office can sustain with its core budget. Therefore, the SOS reserves the right to request funding
for the cost of supporting administrative rules requirements should the need arise based on a
review of the finally approved bills signed by the governor.
FISCAL IMPACT – State GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025$0$0$0 L.R. No. 3294H.02I
Bill No. HB 1753
Page 5 of
March 15, 2022
JLH:LR:OD
FISCAL IMPACT – Local GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025PUBLIC SCHOOLSCost avoidance - School Districts -
savings from transferring students now
to attend recovery high schools -
§167.850
$0 or
Unknown
$0 or
Unknown
$0 or
Unknown
Costs - School Districts - payments to
recovery high schools - §167.850
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
Costs - Recovery High Schools - cost to
educate students - §167.850
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
Revenue - Recovery High School -
payments from public schools and/or
other state(s) - §167.850
$0 or
Unknown
$0 or
Unknown
$0 or
UnknownNET EFFECT ON PUBLIC
SCHOOLS
$0 or
Unknown to
(Unknown)
$0 or
Unknown to
(Unknown)
$0 or
Unknown to
(Unknown)
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
This bill allows the Commissioner of Education to approve and authorize up to four pilot
recovery high schools to be established and operated by individual public school districts or
groups of such districts. Recovery high schools shall serve as an alternative public high school
setting and recovery program for students in recovery from substance use disorder or substance
dependency, or such a condition along with co-occurring disorders as described in the bill, who
would academically and clinically benefit from placement in the recovery high school and who
are committed to working on their recovery.
Districts seeking to operate a recovery high school shall submit proposals to the Commissioner
by December 1st in the year prior to the first school year in which the school would begin
operation. The proposal shall detail how the school will comply with the existing requirements
for public high schools as well as how the school will be accredited by a recovery school
accreditation organization as described in the bill. The proposal may contain requests for waivers L.R. No. 3294H.02I
Bill No. HB 1753
Page 6 of
March 15, 2022
JLH:LR:OD
of existing regulations, which shall be deemed granted if the proposal is approved by the State
Board of Education with the recommendation of the Commissioner.
The Commissioner of Education may specify an authorization period for the recovery high
school which shall be no less than four years. By June 30th annually, the school district or group
of school districts, in consultation with the recovery high school, shall submit to the
Commissioner an analysis of school outcomes, as described in the bill. The Commissioner shall
review the analysis, renew recovery high schools meeting the requirements of the bill and the
requirements of the school's proposal, and may include new terms and conditions to address
areas needing correction or improvement. The Commissioner may revoke or suspend the
authorization of a recovery high school not meeting such requirements.
School districts may enroll their students in a recovery high school by entering an agreement
with district or districts operating the school. Parents of eligible students and eligible students
over the age of 18 may seek to enroll in the school. A recovery high shall not limit or deny
admission to an eligible student based on race, ethnicity, national origin, disability, income level,
proficiency in the English language, or athletic ability.
Recovery high schools shall adopt a policy establishing a tuition rate by February 1st of the
preceding school year. The sending district shall pay the tuition rate or an amount of per-student
state and local funding as described in the bill, whichever is lower and the sending district will
remain responsible for special education and disability expenses in excess of the tuition paid.
The Commissioner may enter into an agreement with the appropriate official or agency of
another state to develop a reciprocity agreement for otherwise eligible, non-resident students
seeking to attend a recovery high school in Missouri. A recovery high school may enroll
otherwise eligible students residing in a state other than Missouri, pursuant to such reciprocity
agreement. Such reciprocity agreement shall require the out-of-state student's district of
residence to pay to the recovery high school an annual amount equal to 105% of the recovery
high school's tuition rate. Eligible students from states with which the Commissioner does not
have a reciprocity agreement may attend a recovery high school provided such student pays
105% of the recovery high school's tuition rate. No student enrolled pursuant to a reciprocity
agreement shall be considered a resident pupil for purposes of calculating state aid.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space. L.R. No. 3294H.02I
Bill No. HB 1753
Page 7 of
March 15, 2022
JLH:LR:OD
SOURCES OF INFORMATION
Department of Elementary and Secondary Education
Department of Mental Health
Office of the Secretary of State
Joint Committee on Administrative Rules
Julie MorffRoss StropeDirectorAssistant DirectorMarch 15, 2022March 15, 2022