COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:5079H.01P Bill No.:Perfected HB 2493 Subject:Teachers; Education, Elementary and Secondary; Department of Elementary and
Secondary Education
Type:Original Date:March 31, 2022Bill Summary:This proposal changes provisions relating to teacher career plans.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025
General Revenue*
$0 to (Could exceed
$20,898,952)
$0 to (Could exceed
$20,898,952)
$0 to (Could exceed
$20,898,952)
Total Estimated Net
Effect on General
Revenue
$0 to (Could exceed
$20,898,952)
$0 to (Could exceed
$20,898,952)
$0 to (Could exceed
$20,898,952)
*Officials from DESE state, in FY 2011, $37,467,000 was appropriated for the Career Ladder.
That was the last time the program was funded. Therefore, Oversight will range the fiscal impact
from $0 (even with the changes in the bill, the program still is not funded), to the change in
raising the state percentage from 40% to 60% (based on FY 2011 amounts). Oversight also
assumes other changes could result in an increase in eligible teacher compensation, if
appropriated (therefore, “could exceed”).
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Excellence in
Education Revolving
Fund* $0$0$0
Career Ladder
Forward Funding
Fund* $0$0$0
Total Estimated Net
Effect on Other State
Funds $0$0$0
*Transfers in and Transfers out net to $0
Numbers within parentheses: () indicate costs or losses. L.R. No. 5079H.01P
Bill No. Perfected HB 2493
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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 2025
Local Government
$0 to Could exceed
$20,898,952
$0 to Could exceed
$20,898,952
$0 to Could exceed
$20,898,952 L.R. No. 5079H.01P
Bill No. Perfected HB 2493
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FISCAL ANALYSIS
ASSUMPTION
Section 163.016 - Dollar Value Modifier (House Amendment 2)
Officials from Department of Elementary and Secondary Education (DESE) state to
calculate the impact, the March 2022 formula calculation for Gasconade County R-II (037-037)
was calculated using the county they are located in that has the highest Dollar Value Modifier
(DVM) which is Franklin County at 1.093. If the formula is fully funded then it would be an
additional cost to the state of $1,076,987 per year. If the formula is not fully funded then the
additional money is going to be shifted from all other school districts.
To calculate the impact, the March 2022 formula calculation for Maries County R-II (063-067)
was calculated using the county they are located in that has the highest Dollar Value Modifier
(DVM) is Osage County at 1.0310. If the formula is fully funded then it would be an additional
cost to the state of $150,437 per year. If the formula is not fully funded then the additional
money is going to be shifted from all other school districts.
To calculate the impact, the March 2022 formula calculation for Bismark R-V (094-076) was
calculated using the county they are located in that has the highest Dollar Value Modifier (DVM)
which is Washington County at 1.092. If the formula is fully funded then it would be an
additional cost to the state of $313,513 per year. If the formula is not fully funded then the
additional money is going to be shifted from all other school districts.
To calculate the impact, the March 2022 formula calculation for West St. Francois County (094-
087) was calculated using the county they are located in that has the highest Dollar Value
Modifier (DVM) which is Washington County at 1.092. If the formula is fully funded then it
would be an additional cost to the state of $624,965 per year. If the formula is not fully funded
then the additional money is going to be shifted from all other school districts.
Officials from the Gasconade County R-II School District state the dollar value modifier will
have no impact on other districts as the DVM is based on the funding formula for education.
However, allowing Gasconade County R-II to claim the Higher Dollar Value Modifier would
result in a Dollar Value Modifier of 1.093 which adds $1,066,637.00 annually to our budget and
allows us to compete with our Franklin County Districts. This is important as they operate a
building which is located in Franklin County and all of our students who attend the Gerald
Elementary School located in Franklin County must attend middle and high school in Gasconade
County.
Oversight will show a range of impact of $0 (not appropriated) to a total cost to General
Revenue of $2,165,902 ($1,076,987 + $150,437 + $313,513 + $624,965) as estimated by the
Department of Elementary and Secondary Education. L.R. No. 5079H.01P
Bill No. Perfected HB 2493
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Section 168.500
In response to the previous version, officials from Department of Elementary and Secondary
Education (DESE) stated due to the need to approve Teacher Career Plans in the proposed
language, DESE estimates a need for 1.0 FTE at the Supervisor level to manage the program.
Oversight notes the need to approve Teacher Career Plans is language that exists in current law
and is not a new requirement of this proposal. Therefore, Oversight will not show the cost for
one additional FTE.
Section 168.515.2
In response to the previous version, officials from DESE stated, in Fiscal Year 2011,
$37,467,000 was appropriated by the General Assembly for Career Ladder. That was the last
time that the program was funded and DESE will base the fiscal impact on that amount. Because
the language in this section reverses the matching percentages and sets the state match at 60
percent and the local funding at 40 percent, the department estimates an impact of up to
$56,200,050. Because this amount is subject to appropriation the Department will show a range
of $0 - $56,200,050 (plus FTE costs).
Oversight assumes current law already provides for funding at forty percent; however, this
funding is not currently appropriated by the General Assembly. Oversight assumes the impact
from this proposal is the difference between funding the Career Ladder program at forty percent
(current law) versus funding at sixty percent (proposed law). Oversight will show a cost of $0
(not appropriated) to a cost that could exceed $18,733,050 ($56,200,050 - $37,467,000) as
appropriated by the General Assembly.
In addition, Oversight assumes this proposal expands the career ladder criteria for admission and
stage achievement and reduces the number of years needed for eligibility. Oversight assumes this
provision could result in an increase in eligible teacher compensation if appropriated.
Oversight assumes these funds would transfer from General Revenue to the Excellence in
Education Revolving Fund into the Career Ladder Forward Funding Fund before being
distributed to qualify school districts. For simplicity, Oversight assumes all funds are utilized in
the year they are received.
Oversight did not receive any 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.
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 database
is available upon request. L.R. No. 5079H.01P
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Section 513.430 - MOST 529 Accounts Bankruptcy Protection - House Amendment 3
Officials from the Department of Revenue, the Department of Commerce and Insurance, the
Department of Elementary and Secondary Education, the Department of Higher Education
and Workforce Development, the Department of Health and Senior Services, the
Department of Social Services and the Missouri Consolidated Health Care Plan each assume
the proposal will have no fiscal impact on their respective organizations.
In response to a similar proposal, HB 1940 (2022), officials from the Office of the State Courts
Administrator assumed the proposal would 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 these agencies for this provision. L.R. No. 5079H.01P
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FISCAL IMPACT – State GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025GENERAL REVENUETransfer Out - Increased formula
funding to Gasconade County R-II,
Maries County R-II, Bismarck R-V and
the West St. Francois County R-IV
school districts - §163.016 - HA2
$0 to
($2,165,902)
$0 to
($2,165,902)
$0 to
($2,165,902)
Costs – DESE - expansion of career
ladder criteria for admission and stage
achievement - §168.515.2
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
Costs - increased funding for Career
Ladders program from forty percent to
sixty percent - §168.515.2
$0 to (Could
exceed
$18,733,050)
$0 to (Could
exceed
$18,733,050)
$0 to (Could
exceed
$18,733,050)ESTIMATED NET EFFECT ON
GENERAL REVENUE
$0 to
(Unknown,
Could exceed
$20,898,952)
$0 to
(Unknown,
Could exceed
$20,898,952)
$0 to
(Unknown,
Could exceed
$20,898,952)
FISCAL IMPACT – State Government
Continued
FY 2023
(10 Mo.)
FY 2024FY 2025EXCELLENCE IN EDUCATION
REVOLVING FUND
Transfer In - from General Revenue -
for expansion of career ladder
eligibility criteria - §168.515.2
$0 or Unknown$0 or Unknown$0 or Unknown
Transfer In - from General Revenue -
increased funding for Career Ladders
program at sixty percent - §168.515.2
$0 to Could
exceed
$18,733,050
$0 to Could
exceed
$18,733,050
$0 to Could
exceed
$18,733,050 L.R. No. 5079H.01P
Bill No. Perfected HB 2493
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Transfer Out - to the Career Ladder
Forward Funding Fund - increased
funding for Career Ladders program
from forty percent to sixty percent -
§168.515.2
$0 to
(Unknown,
Could exceed
$18,733,050)
$0 to
(Unknown,
Could exceed
$18,733,050)
$0 to
(Unknown,
Could exceed
$18,733,050)
ESTIMATED NET EFFECT ON
THE EXCELLENCE IN
EDUCATION REVOLVING FUND$0$0$0
FISCAL IMPACT – State Government
Continued
FY 2023
(10 Mo.)
FY 2024FY 2025CAREER LADDER FORWARD
FUNDING FUND
Transfer In - from Revolving Fund - for
expansion of career ladder eligibility
criteria - §168.515.2
$0 or Unknown$0 or Unknown$0 or Unknown
Transfer In - from Revolving Fund -
increased funding for Career Ladders
program at sixty percent - §168.515.2
$0 to Could
exceed
$18,733,050
$0 to Could
exceed
$18,733,050
$0 to Could
exceed
$18,733,050 L.R. No. 5079H.01P
Bill No. Perfected HB 2493
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Transfer Out - to School Districts -
increased funding for Career Ladders
program from forty percent to sixty
percent - §168.515.2
$0 to
(Unknown,
Could exceed
$18,733,050)
$0 to
(Unknown,
Could exceed
$18,733,050)
$0 to
(Unknown,
Could exceed
$18,733,050)
ESTIMATED NET EFFECT ON
THE CAREER LADDER
FORWARD FUNDING FUND$0$0$0 L.R. No. 5079H.01P
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FISCAL IMPACT – Local GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025SCHOOL DISTRICTSTransfer In - Increased formula funding
to Gasconade County R-II, Maries
County R-II, Bismarck R-V and the
West St. Francois County R-IV school
district from other school districts or
GR - §163.016
$0 to
$2,165,902
$0 to
$2,165,902
$0 to
$2,165,902
Revenue Gain - for expansion of career
ladder eligibility criteria - §168.515.2$0 or Unknown$0 or Unknown$0 or Unknown
Revenue Gain - increased funding for
Career Ladders program from forty
percent to sixty percent - §168.515.2
$0 to Could
exceed
$18,733,050
$0 to Could
exceed
$18,733,050
$0 to Could
exceed
$18,733,050
ESTIMATED NET EFFECT ON
SCHOOL DISTRICTS
$0 to Could
exceed
$20,898,952
$0 to Could
exceed
$20,898,952
$0 to Could
exceed
$20,898,952
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
Section 163.016 - House Amendment 2
This bill specifies that the Gasconade County R-II, Maries County R-II, and the West St. Francis
County R-IV school districts which crosses county lines shall use the dollar value modifier for
the formula calculations for school funding from the county with the highest value.
Section 168.515
This bill expands on the criteria for career ladder admission and stage achievement. Additional
responsibilities and volunteer efforts outside of compensated hours may include uncompensated
coaching, supervising, and organizing extracurricular activities, serving as a mentor or tutor to
students, additional teacher training or certification, or assisting students with college or career
preparation. The bill increases the state percentage of funding for salary supplements for career
ladder from 40% to 60% and lowers the number of years before a teacher is eligible from five to
two years. L.R. No. 5079H.01P
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Section 513.430 - House Amendment 3
This bill provides bankruptcy protection for the Missouri Education Savings Program and the
Missouri Higher Education Deposit Program also known commonly as 529 education savings
accounts. The bill limits the protection to proceedings filed or on appeal after January 1, 2022
and only for designated beneficiaries that are lineal descendants of the account owner.
Contributions within a one year period before a judgment will not qualify for the exemption.
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
Department of Commerce and Insurance
Department of Higher Education and Workforce Development
Department of Health and Senior Services
Department of Revenue
Department of Social Services
Missouri Consolidated Health Care Plan
Office of the State Courts Administrator
Gasconade County R-II
Julie MorffRoss StropeDirectorAssistant DirectorMarch 31, 2022March 31, 2022