COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:5636H.02C Bill No.:HCS for HB 2745 Subject:Education, Elementary and Secondary; Department of Elementary and Secondary Education Type:Original Date:April 27, 2022Bill Summary:This proposal requires public schools to offer a driver education course. FISCAL SUMMARY ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025General Revenue($24,760)$0$0Total Estimated Net Effect on General Revenue ($24,760)$0$0 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. 5636H.02C Bill No. HCS for HB 2745 Page 2 of April 27, 2022 JLH:LR:OD 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(Unknown)(Unknown) L.R. No. 5636H.02C Bill No. HCS for HB 2745 Page 3 of April 27, 2022 JLH:LR:OD FISCAL ANALYSIS ASSUMPTION Section 170.027 - Driver Education Officials from Department of Elementary and Secondary Education (DESE) state, per RSMo Section 160.516, DESE cannot mandate a curriculum but rather can develop the curriculum framework in accordance with RSMo Section 160.514. DESE will convene a work group to develop the curriculum framework for this driver’s education course. The cost of convening this group is $24,760. Officials from the Department of Public Safety - Missouri Highway Patrol 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 this proposal would require school districts and charter schools to offer a driver education course that meets the certain requirements. Oversight notes the following driver education courses in Missouri: who live in the district and $430 for students who live outside the district. Parkway and Rockwood school districts) offers a fee-based driver’s education program that includes classroom instruction, six hours of behind the wheel training and twelve hours of in-car observation. The cost is $395. a fee of $295 per student. $289 with a total of 3 hours of drive-time. with an optional driving experience for an additional fee. $180. driving, 12 hours of observation, and 3 hours of behind-the-wheel driving. The fee for the course is $290. In addition, Oversight notes the following public schools in other states currently offer driver’s education courses to students for a fee as outlined in the table below. L.R. No. 5636H.02C Bill No. HCS for HB 2745 Page 4 of April 27, 2022 JLH:LR:OD SchoolFeeChesterfield Co. (VA) Public Schools$210Des Moines (IA) Public Schools $365Helena (MT) Public Schools $305Bristol (CT) Public Schools $425Crookston (MN) Public Schools$325Hillsborough Co. (FL) Public Schools$250 Driver’s education is provided in all school districts in North Carolina and is available to all public, private, charter and home-schooled students. School districts may charge students a fee of $65 to offset the cost of providing the course. Oversight notes the estimates provided below represent the cost of if 1/3 of high school students elected to take a driver’s education course per year. However, Oversight notes this proposal does not appear to require the driver’s education course to graduate. In addition, this proposal does not require a student to physically operate a motor vehicle. Therefore, the cost for districts to implement this proposal would be less than the estimates below and would ultimately depend on the number of students who elected to take the driver’s education course. Based on information from the Missouri Comprehensive Data System, Oversight notes the preliminary enrollment numbers for the 2021-2022 school year for 10 th through 12 th grade was 200,127. If 1/3 of 10 th through 12 th graders (66,709) take the driver education course per year, Oversight estimates the potential costs to school districts in the chart below assuming different per costs per course. Assumed Course Cost Per StudentEstimated Cost to Public Schools$180 (* 66,709)$12,007,620$297 (* 66,706)$19,812,573$395 (* 66,706)$26,348,870 Oversight notes the recommend number of hours for most driver’s education courses is 30 hours of formal classroom instruction and 6 hours of behind the wheel training. Oversight estimates the following basic costs in the chart below assuming 66,709 students were required to take 30 hours of in-class instruction and 6 hours of driving instruction. Oversight assumed an average class size of 25 and a pay rate of $26 per hour for certified instruction. Oversight notes the costs below do not include curriculum, insurance, retirement benefits, fuel, maintenance or other costs. L.R. No. 5636H.02C Bill No. HCS for HB 2745 Page 5 of April 27, 2022 JLH:LR:OD Estimated Instructional HoursEstimated Cost(66,709 * 30 hours) / 25 class size 80,051$2,081,326(66,709 * 6 hours)400,254$10,406,604566 high schools * 1 car ($18,000)-$10,188,000 Total$22,675,930 Oversight estimates the cost of providing drivers’ education courses in public schools could exceed $22,675,903 in the first year with annually recurring costs that could exceed $12,487,930. Oversight assumes, if 1/3 of high school students elected to take a driver’s education course that did not include behind the wheel training, the cost is estimated at approximately $2,081,326. Based on information previously provided by DESE, Oversight notes 30 of the 566 high schools in Missouri offered driver’s education courses in 2016-2017 with an enrollment of 3,256 students. Based on information recently provided by DESE for the 2020-2021 school year, Oversight notes 35 of the 566 high schools offered a driver’s education course during their regular school year and 73 of the 566 high schools offered a driver’s education course during their summer term. Oversight is uncertain how many students are enrolled in these courses. Ultimately, Oversight is unsure how much it would cost school districts and charter schools to offer a driver’s education course and is uncertain how many school districts may currently offer driver education courses. Therefore, Oversight will show an unknown cost to school districts and charter schools to implement the provision of this proposal. 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. 5636H.02C Bill No. HCS for HB 2745 Page 6 of April 27, 2022 JLH:LR:OD FISCAL IMPACT – State GovernmentFY 2023 (10 Mo.) FY 2024FY 2025GENERAL REVENUECosts - curriculum development meetings - §170.027($24,760)$0$0 ESTIMATED NET EFFECT ON GENERAL REVENUE($24,760)$0$0 FISCAL IMPACT – Local GovernmentFY 2023 (10 Mo.) FY 2024FY 2025PUBLIC SCHOOLSCosts - to offer a driver education course - §170.027$0(Unknown)(Unknown) ESTIMATED NET EFFECT ON PUBLIC SCHOOLS$0(Unknown)(Unknown) FISCAL IMPACT – Small Business No direct fiscal impact to small businesses would be expected as a result of this proposal. FISCAL DESCRIPTION This bill will require the State Board of Education to develop a "driver education instruction and training program" to be offered as part of the health curriculum in public and charter schools to pupils in grades 10 to 12. The instruction and training shall be made available by the 2023-24 school year and districts and charter schools will offer such instruction or a similar program. The instruction shall include but is not limited to habits and skills necessary for the safe operation of motor vehicles, distracted driving hazards, and traffic stop procedures. The instruction does not require physical operation of a vehicle and the bill does not prohibit schools from offering additional drivers education courses. 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 Public Safety - Missouri Highway Patrol L.R. No. 5636H.02C Bill No. HCS for HB 2745 Page 7 of April 27, 2022 JLH:LR:OD Office of the Secretary of State Joint Committee on Administrative Rules Julie MorffRoss StropeDirectorAssistant DirectorApril 27, 2022April 27, 2022