COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:4676H.01I Bill No.:HB 2325 Subject:Department of Higher Education and Workforce Development; Education,
Elementary and Secondary; Education, Higher
Type:Original Date:January 24, 2022Bill Summary:This proposal establishes the "workforce diploma program" within the
Department of Elementary and Secondary Education.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025
General Revenue*
$0 to (Unknown
Could exceed
$4,998,309
$14,857,084)
$0 to (Unknown
Could exceed
$5,002,262
$14,861,037)
$0 to (Unknown
Could exceed
$5,002,992
$14,861,767)
Total Estimated Net
Effect on General
Revenue
$0 to (Unknown
Could exceed
$4,998,309
$14,857,084)
$0 to (Unknown
Could exceed
$5,002,262
$14,861,037)
$0 to (Unknown
Could exceed
$5,002,992
$14,861,767)
*Oversight notes the Workforce Diploma Program is the greater part of the fiscal impact and is
subject to appropriation; therefore the “$0” above represents the scenario of the program not
receiving an appropriation. The fiscal impact of the program (if appropriated) ranges from 1%
participation to 3% participation, as estimated by DESE. Actual participation in the program
could be higher (“Could exceed”).
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Workforce Diploma
Program Fund*$0$0$0
Total Estimated Net
Effect on Other State
Funds $0$0$0
*Transfers and distributions net to zero.
Numbers within parentheses: () indicate costs or losses. L.R. No. 4676H.01I
Bill No. HB 2325
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January 24, 2022
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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 2025General Revenue0 or 1 FTE0 or 1 FTE0 or 1 FTETotal Estimated Net
Effect on FTE0 or 1 FTE0 or 1 FTE0 or 1 FTE
☒ 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$0$0 L.R. No. 4676H.01I
Bill No. HB 2325
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January 24, 2022
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FISCAL ANALYSIS
ASSUMPTION
Officials from Department of Elementary and Secondary Education (DESE) assume they
may require 1.0 FTE at a minimum at the supervisor level in order to publish the request for
qualifications, review the applicants against the statutory requirements, collect data, run reports,
and make payments.
As of 2017, there are 453,226 Missourians 21 years of age or older who have not received a high
school diploma. It is estimated that approximately 1 percent (4,532) to 3 percent (13,597) of
these individuals may participate in this program. Because payments made to providers are to be
made in accordance with a schedule set with the Department, DESE will make several
assumptions for payment amounts based on previous versions of the bill.
Completion of each half unit of high school credit - $250
Attaining an employability certificate - $250
Attaining an industry recognized credential (50 hours)- $250
Attaining an industry recognized credential (75 hours)- $500
Attaining an industry recognized credential (100 hours)- $250
Attaining a high school diploma - $1,000
The Department estimates that approximately half of the individuals that would participate in the
program may earn their high school diploma each year which would result in a cost between
$2,266,000 (2,266 students earn a diploma) and $6,799,000 (6,799 students earn a diploma) per
year.
The Department also estimates that each student participating in the program would earn at least
one full unit of high school credit each year resulting in an additional amount of $2,266,000
(4,532 students earn at least one full unit of high school credit) and $6,799,000 (13,597 students
earn at least one full unit of high school credit) per year.
If 10 percent of graduates also earned an industry recognized credential at an average of $500 the
Department estimates an additional cost of $113,300 (2,266 x 10% x $500) to $339,950 (6,799 x
10% x $500).
If 50 percent of graduates also earned an employability skills certificate, the Department
estimates an additional cost of $283,250 (2,266 x 50% x $200) to $849,875 (6,799 x 50% x
$250).
$2,266,000 - $6,799,000 for high school diploma achievements
$283,250 - $849,875 for employability skills certificate achievements
$113,300 - $339,950 for industry recognized credential achievements L.R. No. 4676H.01I
Bill No. HB 2325
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January 24, 2022
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$2,266,000 - $6,799,000 for ½ unit of high school credit achievements
$4,928,550 - $14,787,825
Because this provision is subject to appropriation, the Department will show a range of $0 (no
money appropriated for the program) to $14,857,084 starting in FY23.
At the time this fiscal note was presented, DESE had not yet provided salary, fringe and
equipment costs for the necessary FTE. Oversight estimated the cost based on a similar proposal
from the previous year, HB 733 (2021).
Oversight will show a range of impact of $0 (not appropriated) to the costs as estimated by
DESE as a transfer from General Revenue to the Workforce Diploma Program Fund.
Oversight will show the costs as estimated by DESE to the Workforce Diploma Program Fund
for reimbursements to program providers. Oversight assumes funds will be used within the year
they were received.
Officials from the Office of the State Treasurer assume the proposal will have no fiscal impact
on their organization. Oversight does not have any information to the contrary. Therefore,
Oversight will reflect a zero impact in the fiscal note for this agency.
Oversight assumes DESE is required to issue a request for interested program providers before
September 1, 2022. Program providers must be approved by October annually and students may
start enrolling in November annually. Oversight assumes DESE could request and approve
program providers any time before September 2022 and after the effective date of this proposal
August 28, 2022. Therefore, Oversight will show cost beginning in FY 2023.
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. L.R. No. 4676H.01I
Bill No. HB 2325
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Bill No. HB 2325
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January 24, 2022
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FISCAL IMPACT – State GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025GENERAL REVENUECosts - DESE - establish and administer
the Workforce Diploma Program -
§173.831$0 or …$0 or …$0 or …
Personal Service($33,540)($40,650)($41,027) Fringe Benefits($21,270)($25,659)($25,797) Equipment and Expense($14,949)($7,403)($7,588)Total Costs($69,759)($73,712)($74,442) FTE Change - DESE0 or 1 FTE0 or 1 FTE0 or 1 FTE
Transfer Out - DESE - to the
Workforce Diploma Program Fund -
§173.83
$0 to
(Unknown
Could exceed
$4,928,550 to
$14,787,325)
$0 to
(Unknown
Could exceed
$4,928,550 to
$14,787,325)
$0 to
(Unknown
Could exceed
$4,928,550 to
$14,787,325)
ESTIMATED NET EFFECT ON
GENERAL REVENUE
$0 to
(Unknown
Could exceed
$4,998,309
$14,857,084)
$0 to
(Unknown
Could exceed
$5,002,262
$14,861,037)
$0 to
(Unknown
Could exceed
$5,002,992
$14,861,767)
Estimated Net FTE Change for the
General Revenue Fund0 or 1 FTE0 or 1 FTE0 or 1 FTE
FISCAL IMPACT – State GovernmentFY 2023FY 2024FY 2025 L.R. No. 4676H.01I
Bill No. HB 2325
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Continued(10 Mo.)WORKFORCE DIPLOMA
PROGRAM FUNDTransfer In - from General Revenue -
§173.831
$0 to Unknown
Could exceed
$4,928,550 to
$14,787,325
$0 to Unknown
Could exceed
$4,928,550 to
$14,787,325
$0 to Unknown
Could exceed
$4,928,550 to
$14,787,325
Income - from gifts and bequests -
§173.831$0 or Unknown$0 or Unknown$0 or UnknownCosts - DESE - reimbursements to
program providers for qualifying
student milestones - §173.831
$0 to
(Unknown
Could exceed
$4,928,550 to
$14,787,325)
$0 to
(Unknown
Could exceed
$4,928,550 to
$14,787,325)
$0 to
(Unknown
Could exceed
$4,928,550 to
$14,787,325)
ESTIMATED NET EFFECT ON
THE WORKFORCE DIPLOMA
PROGRAM FUND$0$0$0
FISCAL IMPACT – Local GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025$0$0$0
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
This bill establishes the "Workforce Diploma Program", to assist students in obtaining a high
school diploma and develop employability and career technical skills.
This bill also creates the "Workforce Diploma Program Fund".
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. 4676H.01I
Bill No. HB 2325
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January 24, 2022
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SOURCES OF INFORMATION
Department of Elementary and Secondary Education
Office of the State Treasurer
Office of the Secretary of State
Joint Committee on Administrative Rules
Julie MorffRoss StropeDirectorAssistant DirectorJanuary 24, 2022January 24, 2022