COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:4669H.01I Bill No.:HB 2152 Subject:Education, Elementary and Secondary; Department of Elementary and Secondary
Education; Teachers
Type:Original Date:March 15, 2022Bill Summary:This proposal allows school innovation teams to submit plans for school
innovation waivers.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025General Revenue$0 or (Unknown)$0 or (Unknown)$0 or (Unknown)Total Estimated Net
Effect on General
Revenue
$0 or (Unknown)$0 or (Unknown)$0 or (Unknown)
Oversight notes DESE’s FY 2022 Budget Book included a $1,000,000 Governor’s
Recommendation from General Revenue to “support school innovation teams in implementing
their waivers approved by the State Board of Education”. DESE’s FY 2023 Budget Book does
not appear to include funding to support innovation waivers. Oversight assumes if there is an
appropriation for the program, it will exceed $250,000.
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. 4669H.01I
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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 2025Local Government$0 or (Unknown)$0 or (Unknown)$0 or (Unknown) L.R. No. 4669H.01I
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FISCAL ANALYSIS
ASSUMPTION
Section 161.214 School Innovation Waiver
Officials from the Department of Elementary and Secondary Education and Department of
Higher Education and Workforce Development 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.
Officials from the Joint Committee on Public Employee Retirement have reviewed this
proposal and determined it has no direct fiscal impact to the Joint Committee on Public
Employee Retirement. The JCPER’s review of this legislation indicates it will not affect
retirement plan benefits as defined in Section 105.660(9).
Oversight notes DESE’s FY 2022 Budget Book included a $1,000,000 Governor’s
Recommendation from General Revenue to “support school innovation teams in implementing
their waivers approved by the State Board of Education”. DESE’s FY 2023 Budget Book does
not appear to include funding to support innovation waivers.
Oversight will show a range of impact to General Revenue of $0 (no additional cost or not
appropriated) to an unknown cost to support school innovation teams. Based on FY 2022’s
Governor Recommend, Oversight assumes the cost could exceed $250,000.
Oversight assumes there could be a cost to implement this program. School districts may have
costs related to improving student readiness and job training, increasing teacher compensation, or
improving teacher recruitment and development. Oversight will show a range of impact of $0
(no school districts participate or no additional cost) to an unknown cost to implement the
waiver. Oversight assumes the net impact on school districts would be $0 if distributions from
General Revenue cover all costs or negative net impact if implementation costs exceed state
distributions.
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 L.R. No. 4669H.01I
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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 2025GENERAL REVENUECosts - DESE - support for school
districts implementing School
Innovation Waivers - §161.214
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
ESTIMATED NET EFFECT ON
GENERAL REVENUE
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
FISCAL IMPACT – Local GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025SCHOOL DISTRICTSCosts - to implement School Innovation
Waivers (improve student readiness and
job training, increase teacher
compensation, improve teacher
recruitment and development) -
§161.214
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
Revenue - distributions from the state to
support school districts implementing
School Innovation Waivers if
appropriated - §161.214
$0 or
Unknown
$0 or
Unknown
$0 or
Unknown
ESTIMATED NET EFFECT ON
SCHOOL DISTRICTS
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal. L.R. No. 4669H.01I
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FISCAL DESCRIPTION
This bill provides a definition for "school innovation team" and for "school innovation waiver"
and allows school innovation teams to submit a plan to the State Board of Education (SBE) for a
state innovation waiver for a variety of purposes as outlined in the bill.
Plans submitted to the SBE must include the provision of law for which the waiver is being
requested, as well as demonstrate the necessity of the waiver, provide measurable performance
targets and goals, and demonstrate support for the plan, along with additional requirements as
provided in the bill.
The bill provides the SBE specific criteria for the evaluation of submitted plans and permits the
SBE to make modifications to the plan with the cooperation of the school innovation team.
School innovation waivers are only effective for three years beginning the school year following
the approval and may be renewed. Only one waiver may be in effect per school at a time, and
specific restrictions to statutory requirements relating to school start date, teacher certification,
teacher tenure, or any requirement imposed by federal law, are applicable
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Elementary and Secondary Education
Office of the Secretary of State
Joint Committee on Administrative Rules
Julie MorffRoss StropeDirectorAssistant DirectorMarch 15, 2022March 15, 2022