COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:3671H.05C Bill No.:HCS for HB 2652 Subject:Education, Elementary and Secondary; Department of Elementary and Secondary
Education
Type:Original Date:March 23, 2022Bill Summary:This proposal changes procedures and practices for public schools and
school districts.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025
General Revenue
(Could exceed
$431,753)
(Could exceed
$437,568)
(Could exceed
$438,940)
Total Estimated Net
Effect on General
Revenue
(Could exceed
$431,753)
(Could exceed
$437,568)
(Could exceed
$438,940)
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. 3671H.05C
Bill No. HCS for HB 2652
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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 Revenue 2 FTE2 FTE2 FTETotal Estimated Net
Effect on FTE2 FTE2 FTE2 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)
$0 to
(Unknown)
$0 to
(Unknown) L.R. No. 3671H.05C
Bill No. HCS for HB 2652
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FISCAL ANALYSIS
ASSUMPTION
Section 160.518, 160.545, 161.092 - Annual Performance and Accreditation
Officials from Department of Elementary and Secondary Education (DESE) state the
proposed legislation provides that any school district with fifty-one percent or more of its
attendance centers in the bottom five percent of the annual performance report shall be classified
as provisionally accredited or unaccredited.
The department assumes 120 attendance centers would make up the five percent of those
performing in the bottom five percent. DESE assumes that this could mean up to 60 school
districts could become unaccredited. Such action would require the Department of Elementary
and Secondary Education to conduct hearings for those districts that are unaccredited at least
twice a year for a total of 120 hearings per school year. At a cost of $2,500 per hearing, the
department estimates a total cost of $300,000 per year for hearing costs, various travel and
mileage and meals.
The department also will require 2 FTE to fulfill the requirements of the legislation. 1.0 FTE at
the Supervisor level and 1.0 FTE for an Administrative Assistant.
Depending on the development/requirements of the new assessments, there could be a fiscal
impact in regards to data collection, processing and reporting. Therefore, DESE will show a
fiscal impact of a range to unknown.
Oversight does not have any information to the contrary. Therefore, Oversight will reflect the
costs provided by DESE for fiscal note purposes.
Oversight notes, according to the 2019-2020 Statistics of Missouri Public Schools provided by
DESE, the state has 70 Elementary School Districts and 448 Districts maintaining High School
(for a total of 518….10% is 52 and 25% is 129). Also, the number of public school buildings is: L.R. No. 3671H.05C
Bill No. HCS for HB 2652
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Number of School Building count 10% 25%
High Schools 568 57 142
Jr. High Schools 49 5 12
Middle Schools 295 30 74
Elementary 1,221 122 305
Other 143 14 36
Charter High Schools 17 2 4
Charter Middle Schools 17 2 4
Charter Elementary Schools 42 4 11
State Board Operated Programs 40 4 10
Missouri Course Access & Virtual Schools 2 0 1
TOTAL 2.394 239 599
10% = 239
25% = 599
According to DESE, the following school districts were Provisionally Accredited as of January
2022:
162.084 - Notification
In response to a similar proposal, HB 942 (2021), officials from the Springfield School District
assumed a cost for the notification process, goals process – assuming 10% unaccredited and 25
provisionally accredited – costing $50,000.
Oversight assumes there could costs associated with notifying parents of performance scores
and academic proficiency and growth goals.
168.021 - Visiting Scholars’ Certificate
In response to a similar proposal, HB 1928 (2022), officials from the DESE 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 on the fiscal note for this provision. L.R. No. 3671H.05C
Bill No. HCS for HB 2652
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168.110 - Differentiated Placement on Salary Schedule
In response to a similar proposal, HB 1770 (2022), officials from the Department of
Elementary and Secondary Education 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 in this agency for this section.
In response to a similar proposal, HB 1770 (2022), officials from Joint Committee on Public
Employee Retirement (JCPER) stated this proposal has no direct fiscal impact to the Joint
Committee on Public Employee Retirement. The JCPER’s review of the proposal indicates that
its provisions may constitute a “substantial proposed change” in future plan benefits as defined in
section 105.660(10). It is impossible to accurately determine the fiscal impact of SB 1098
without an actuarial cost statement prepared in accordance with section 105.665. Pursuant to
section 105.670, an actuarial cost statement must be filed with the Chief Clerk of the House of
Representatives, the Secretary of the Senate, and the Joint Committee on Public Employee
Retirement as public information for at least five legislative days prior to final passage.
In response to a similar proposal, HB 1770 (2022), officials from the Kansas City Public
School Retirement System and the Public Schools and Education Employee Retirement
Systems each assume the proposal will have no fiscal impact on their respective organizations.
Oversight assumes there could be costs for school districts if teachers in hard-to-staff subject
areas receive differentiated placement on the salary schedule to increase compensation.
Based on the responses provided by Public Schools and Education Employee Retirement
Systems and the Kansas City Public School Retirement System, Oversight will assume there is
no impact to employer contribution rates from this provision. If this assumption is incorrect, this
could potentially change the fiscal impact as presented in this fiscal note.
Responses regarding the proposed legislation as a whole
In response to a similar proposal, HB 942 (2021), officials from the High Point R-III School
District stated the proposal would fiscally impact their district, but did not elaborate.
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.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other 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. L.R. No. 3671H.05C
Bill No. HCS for HB 2652
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FISCAL IMPACT – State GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025GENERAL REVENUE Costs – DESE §161.092 p.3 Personal Service($58,000)($70,296)($70,999) Fringe Benefits($42,037)($50,698)($50,953) Expense & Equip.($31,716)($16,574)($16,988)Total Costs – DESE($131,753)($137,568)($138,940) FTE Change – DESE2 FTE2 FTE2 FTECosts – DESE – additional hearing
costs due to increase in # of
unaccredited attendance centers and
school districts - §161.092 p.3
($300,000) ($300,000) ($300,000)
Costs – DESE – data collection and
other administrative functions -
§161.092 p.3
(Unknown)(Unknown)(Unknown)
ESTIMATED NET EFFECT ON
GENERAL REVENUE
(Could exceed
$431,753)
(Could exceed
$437,568)
(Could exceed
$438,940)
FISCAL IMPACT – Local GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025SCHOOL DISTRICTSCosts – to display annual performance
report rating and ranking - §161.092
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
Costs - to notify parents of performance
scores and goals - §162.084 p.4
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
Costs - differentiated placement of
hard-to-staff teachers on the salary
schedule - §168.110 p.5
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
ESTIMATED NET EFFECT ON
SCHOOL DISTRICTS
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown) L.R. No. 3671H.05C
Bill No. HCS for HB 2652
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FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
This bill modifies the public school accreditation and statewide assessment system. The bill
allows for the statewide assessment system to track student performance from different schools if
a student has transferred from one school to another. The bill defines "attendance center" as an
individual public elementary or secondary school, and directs the State Board of Education
(SBE), to collect and disseminate information on the attendance center level rather than the
current overall district level. The bill adds race and ethnicity to the annual reporting requirements
currently established, and requires that the report include improvement suggestions to be
research-based with citations.
The bill expands on the SBE classification and accreditation rule making authority by providing
new categories of classification with specific methodology for making accreditation
determinations. Districts with 51% or more of the district's attendance centers in the bottom 5%
of scores on the annual performance report will be classified as unaccredited or provisionally
accredited and only districts in the top 10% will be classified as accredited with distinction.
This bill expands on the SBE's rule making authority for academic achievement and academic
performances. by requiring that academic growth account for no less than 40% of the total
accreditation score, and providing further instruction for the calculation of performance. The bill
provides the SBE guidance on new rule making authority for local education agencies (LEA) that
have attendance centers that become unaccredited and provisionally accredited. LEAs must
develop and submit a research-based improvement plan developed in partnership with
independent school improvement experts, parents and teachers. LEAs are encouraged to develop
innovation zones and partner with nonprofit organizations with expertise in school redesign and
improvement. Any attendance center, school district, or charter school that is classified as
provisionally accredited or unaccredited shall inform all parents of students of the classification,
along with details on student options and future school improvement plans.
Any attendance center that is a charter school and unaccredited for four consecutive years shall
be reconstituted in partnership with an accredited charter organization or be closed and any LEA
shall provide students attending any attendance center that has been provisionally accredited for
four consecutive years the option to transfer to a higher performing attendance center within the
district.
The Department of Elementary and Secondary Education (DESE) shall recognize and publish
attendance centers that are accredited with distinction and demonstrate significant academic
growth, and will display on the department's website the annual performance report rating, the L.R. No. 3671H.05C
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ranking percentage for each school district and attendance center, along with the accreditation
status (Section 161.092 RSMo).
Districts and charter schools that are determined to be in the bottom 5% of scores on the annual
performance report must mail letters to the parents or guardians of each student with specified
information relating to the students options, and the plans of the school to improve academic
proficiency and growth goals in reading and math in the next three years (Section 162.084). The
bill expands language relating to the visiting scholars certificate to allow certificates to be issued
to individuals employed to fill vacant positions in hard-to-staff schools or subject areas (Section
168.021).
The bill allows school districts to include differentiated placement of teachers on the salary
schedule to provide increased compensation to recruit and retain teachers in hard-to-staff subject
areas and schools (Section 168.110).
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
Springfield School District
High Point R-III School District
Julie MorffRoss StropeDirectorAssistant DirectorMarch 23, 2022March 23, 2022