COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:4676H.01R Bill No.:Re-Perfected HB 2325 Subject:Department of Higher Education and Workforce Development; Education,
Elementary and Secondary; Education, Higher
Type:Original Date:April 13, 2022Bill Summary:This proposal establishes the "workforce diploma program" within the
department of higher education and workforce development.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025
General Revenue*
($119,610 to
Unknown Could
exceed $5,117,919
$14,976,694)
($91,489) to
(Unknown Could
exceed $5,093,751
$14,952,526)
($92,402) to
(Unknown Could
exceed $5,095,394
$14,954,169)
Total Estimated Net
Effect on General
Revenue
($119,610 to
Unknown Could
exceed $5,117,919
$14,976,694)
($91,489) to
(Unknown Could
exceed $5,093,751
$14,952,526)
($92,402) to
(Unknown Could
exceed $5,095,394
$14,954,169)
*Oversight notes the Workforce Diploma Program is the greater part of the fiscal impact and is
subject to appropriation; therefore the lowest costs above represent the scenario of the program
not receiving an appropriation. The fiscal impact of that 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.01R
Bill No. Re-Perfected HB 2325
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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 2025
General Revenue
1 FTE to Could
Exceed 2 FTE
1 FTE to Could
Exceed 2 FTE
1 FTE to Could
Exceed 2 FTE
Total Estimated Net
Effect on FTE
1 FTE to Could
Exceed 2 FTE
1 FTE to Could
Exceed 2 FTE
1 FTE to Could
Exceed 2 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 to (Unknown)(Unknown)(Unknown) L.R. No. 4676H.01R
Bill No. Re-Perfected HB 2325
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FISCAL ANALYSIS
ASSUMPTION
Oversight was unable to receive some of the agency responses in a timely manner due to the
short fiscal note request time. Oversight has presented this fiscal note on the best current
information that we have or on prior year information regarding a similar bill. Upon the receipt
of agency 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.
Section 173.831 - Workforce Diploma Program
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 were 453,226 Missourians 21 years of age or older who had 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. L.R. No. 4676H.01R
Bill No. Re-Perfected HB 2325
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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
$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.
Section 160.2700 & 167.2705 - Adult High Schools - House Amendment 6
In response to a similar proposal, HB 2618 (2022), officials from the Department of
Elementary and Secondary Education, Department of Health and Senior Services and the
Department of Social Services each assumed the proposal would have no fiscal impact on their
respective organizations. L.R. No. 4676H.01R
Bill No. Re-Perfected HB 2325
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Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero
impact in the fiscal note for these agencies for these provisions.
Section 160.565 - Extended Learning Opportunities - House Amendment 5
In response to a similar proposal, HB 1856 (2022), officials from the Department of
Elementary and Secondary Education (DESE) stated this section establishes the Extended
Learning Opportunities Act. DESE would be required to assist students and parents in
completing the enrollment process, developing an agreement form for each vendor that parents
or students must sign, assisting in follow ups on those forms, assuring the student and one parent
signs the form, determining if the parent has parental rights in place to sign such a form, etc. The
Department estimates at least one Director FTE at a $51,288 annual salary would be required to
comply with these requirements.
The section also requires the development of a statewide policy, including criteria for provider
approval, basis for credit acceptance and application processes, etc. DESE estimates an
additional fiscal impact of at least $35,000 for the policy development and modifications to the
data collection system.
In response to a similar provision in HCS for SB 323 (2021), officials from the Sikeston R-6
School District assumed the impact would be related to developing new learning opportunities
for students with new partnerships.
Oversight notes this section requires, beginning with the 2023-2024 school year, the state board
of education and each local school board shall routinely inform students and their parents of the
ability to earn credit for participating in extended learning opportunities.
Oversight assumes there could be costs associated with informing and assisting students and
parents who want to participate in extended learning opportunities. Oversight will show the costs
as estimated by DESE (could exceed 1 FTE) and an unknown cost to school districts.
Responses regarding the proposed legislation as a whole
Officials from the Department of Social Services 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.
Oversight received a limited number of responses from school districts related to the fiscal
impact of this proposal. Oversight has presented 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. L.R. No. 4676H.01R
Bill No. Re-Perfected HB 2325
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Oversight only reflects the responses received from state agencies and political subdivisions;
however, school districts were requested to respond to this proposed legislation but did not. A
listing of political subdivisions included in the Missouri Legislative Information System
(MOLIS) database is available upon request.
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.
In response to similar proposals, officials from the Office of the Secretary of State (SOS)
noted 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.01R
Bill No. Re-Perfected HB 2325
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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 (p.3)$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 -
§173.831
$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)
Costs - DESE - policy development and
modifications to data collection system
HA5 - §160.565 (p.5)($35,000)$0$0
Costs - DESE - HA5 - §160.565
Could
exceed…
Could
exceed…
Could
exceed…
Personal Service($42,740)($51,801)($52,319) Fringe Benefits($26,012)($31,400)($31,589) Expense & Equipment($15,858)($8,288)($8,494)Total Costs($84,610)($91,489)($92,402)FTE Change DESE1 FTE1 FTE1 FTE
ESTIMATED NET EFFECT ON
GENERAL REVENUE
($119,610 to
Unknown
Could exceed
$5,117,919
$14,976,694)
($91,489) to
(Unknown
Could exceed
$5,093,751
$14,952,526)
($92,402) to
(Unknown
Could exceed
$5,095,394
$14,954,169)
Estimated Net FTE Change for the
General Revenue Fund
1 FTE to Could
exceed 2 FTE
1 FTE to Could
exceed 2 FTE
1 FTE to Could
exceed 2 FTE L.R. No. 4676H.01R
Bill No. Re-Perfected HB 2325
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FISCAL IMPACT – State Government
Continued
FY 2023
(10 Mo.)
FY 2024FY 2025WORKFORCE DIPLOMA
PROGRAM FUNDTransfer In - from General Revenue -
§173.831 (p.3-4)
$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 2025SCHOOL DISTRICTS &
CHARTER SCHOOLS
Costs - to inform and assist
students/parents who want to participate
in extended learning opportunities -
HA5 - §160.565 (p.5)
$0(Unknown)(Unknown)
SCHOOL DISTRICTS &
CHARTER SCHOOLS$0 (Unknown) (Unknown)
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal. L.R. No. 4676H.01R
Bill No. Re-Perfected HB 2325
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FISCAL DESCRIPTION
Section 173.831
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".
House Amendment 4
This amendment modifies the titles of the bill.
House Amendment 5 - Section 160.565
This provision establishes the "Extended Learning Opportunities Act". The bill defines
"extended learning opportunity" as an out of classroom learning experience as approved by the
State Board of Education (SBE), school board, or a charter school and that provides a student
with:
1) Enrichment opportunities;
2) Career readiness or employability skills opportunities including, but not limited to,
internships; pre-apprenticeships; or apprenticeships; or
3) Any other approved educational opportunities.
This provision requires that by the 2023-24 school year the SBE and local school boards must
inform students of the opportunity to participate and earn credit for extended learning
opportunities. The SBE must adopt a policy and local school districts shall distribute and
implement extended learning policies that include an application process, a list of eligible entities
offering extended learning opportunities, the process for receiving credit, and criteria for
approval and completion.
House Amendment 6 - Section 160.2700 & 167.2705
This amendment allows synchronous instruction connecting students to a live classroom in a
Missouri adult high school to be treated the same as in-person learning. The bill defines "adult
high school" to mean the same as a "secondary school system" and to be exempt from child care
licensure under Section 210.211 RSMo.
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.01R
Bill No. Re-Perfected HB 2325
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SOURCES OF INFORMATION
Department of Elementary and Secondary Education
Department of Higher Education and Workforce Development
Department of Social Services
Department of Health and Senior Services
Office of the State Treasurer
Office of the Secretary of State
Joint Committee on Administrative Rules
Julie MorffRoss StropeDirectorAssistant DirectorApril 13, 2022April 13, 2022