COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:4133S.01I Bill No.:SB 681 Subject:Boards, Commissions, Committees and Councils; Education, Elementary and
Secondary; Department of Elementary and Secondary Education; Teachers
Type:Original Date:January 24, 2022Bill Summary:This proposal modifies provisions related to literacy and reading instruction.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025General Revenue($20,000 to
Unknown)
($20,000 to
Unknown)
($20,000 to
Unknown)
Total Estimated Net
Effect on General
Revenue
($20,000 to
Unknown)
($20,000 to
Unknown)
($20,000 to
Unknown)
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. 4133S.01I
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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
(Unknown,
Potentially
significant)
(Unknown,
Potentially
significant)
(Unknown,
Potentially
significant) L.R. No. 4133S.01I
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FISCAL ANALYSIS
ASSUMPTION
Officials from Department of Elementary and Secondary Education (DESE) state, due to
sections 167.268 and 167.645, potentially, more students could be attending summer school
which could affect the foundation formula but there would be no way for the department to
estimate that number.
Per section 186.080, DESE would be required to establish a literacy advisory council and hold
two meetings annually. The estimated cost for these meetings is $20,000.
Oversight assumes this proposal removes the requirement that a student attend summer school if
they are reading below third-grade at the third-grade level. However, Oversight assumes this
proposal also states that Charter Schools are now required to offer summer school reading
instruction to students with reading success plans and Charter Schools may require students to
attend summer school as a condition of promotion to fourth grade.
Upon further inquiry, DESE stated this proposal does remove the requirement in subsection
167.645.7 but subsection 167.645.9 still requires summer school to be offered to any student
with a reading success plan. The Department does not believe the changes in this legislation will
significantly change the amount of ADA reported for summer school. Charter schools are now
included and could increase the call on the formula if more charter schools students would now
be attending summer school.
Oversight will adopt DESE’s assumption that this could result in an increased call to the
foundation formula. Oversight will show a range of impact of $0 (no additional summer school
attendance or no appropriation) to an unknown cost to General Revenue with subsequent gain in
revenue to school districts.
Oversight notes, per section 163.011, "Full-time equivalent average daily attendance of summer
school students" shall be computed by dividing the total number of hours, except for physical
education hours that do not count as credit toward graduation for students in grades nine, ten,
eleven, and twelve, attended by all summer school pupils by the number of hours required in
section 160.011 in the school term.”
One full term of attendance is 1,044 hours per student. For each full term of attendance, the
average state funding per ADA is approximately at $5,066 (per DESE) or $4.85 per hour of full
term attendance. For each additional hour of summer school attendance, Oversight estimates the
cost to be approximately $4.85. However, Oversight notes this is an approximation of the cost as
the state aid payment can vary greatly by district. L.R. No. 4133S.01I
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Oversight notes Charter Schools reported 1,058,885 hours of summer school attendance in
2018, based on information provided by DESE from a previous year.
Oversight estimates to reach a revenue impact of $250,000 would require a change in attendance
hours of approximately 52,000 hours or approximately 50 ADA (52,000 * $4.85 = $252,200).
An increase of 52,000 hours would be a 4.9% increase in Charter School summer attendance;
therefore, Oversight assumes it is possible the impact could reach the $250,000 threshold.
Officials from the Department of Higher Education and Workforce Development 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.
In response to a similar proposal, SB 54 (2021), officials from the Springfield R-XII School
District stated the total fiscal impact to the district is $6,562,500.
In response to a similar proposal, SB 54 (2021), officials from the High Point R-III School
District assumed the proposal will have no fiscal impact on their organization.
In response to a similar proposal, HB 2470 (2020), officials from the Park Hill School District
anticipated a fiscal impact to hire additional staff to implement and monitor the extended
requirements. Estimated cost would exceed $100,000 annually.
In response to a similar proposal, HB 2470 (2020), officials from the Shell Knob School
District assumed that bill would have a negative fiscal impact.
In response to a similar proposal, HB 2470 (2020), officials from the Wellsville -Middletown
School District estimated needing at least one possibly two additional elementary teachers, at a
cost of $92,000 per year.
Per the Achievement Level Report available on the Missouri Comprehensive Data System,
Oversight notes the following number of students with scores in the below basic level and the
basic level within the Springfield School District:
Springfield School District - School Year 2019
GradeBelow BasicBasicTotalThird Grade4705501020Fourth Grade245707952Fifth Grade2338051038Sixth Grade317658975Total1,2652,7203,985 L.R. No. 4133S.01I
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Based on the cost reported by the Springfield School District, Oversight estimates the cost per
student reading at below basic and basic (in grades 3 through 6) at approximately $1,647
($6,562,500/3,985).
Statewide - School Year 2019
GradeBelow BasicBasicTotalThird Grade15,66418,52734,191Fourth Grade8,38926,40634,795Fifth Grade8,65328,51037,163Sixth Grade10,93827,22638,164Total43,644100,669144,313
Applying the $1,647 to the statewide total of students reading at below basic and basic in grades
3 through 6, Oversight
school districts, Oversight is uncertain if other school districts would experience costs similar to
those reported by the Springfield School District. Oversight assumes additional resources,
namely additional teacher time, assessments and materials, will be required to implement these
changes. Therefore, Oversight will show an unknown cost to school districts that could be
significant.
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 general listing of political subdivisions included in Oversight’s 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.
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 L.R. No. 4133S.01I
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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.
FISCAL IMPACT – State GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025GENERAL REVENUECosts - increased call to the foundation
formula for Charter School Summer
School ADA 167.268 & 167.645 - p. 3
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
Costs - annual meetings for literacy
advisory council - 186.080 - p. 3($20,000)($20,000)($20,000)
ESTIMATED NET EFFECT ON
THE GENERAL REVENUE FUND
($20,000 to
Unknown)
($20,000 to
Unknown)
($20,000 to
Unknown)
FISCAL IMPACT – Local GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025SCHOOL DISTRICTS &
CHARTER SCHOOLS
Revenue Gain - distributions in state aid
to Charter Schools for Summer School
- 167.268 & 167.645 - p. 3
$0 or Unknown$0 or Unknown$0 or UnknownCosts - reading success plans and
reading intervention for students - p. 4
(Unknown,
Potentially
significant)
(Unknown,
Potentially
significant)
(Unknown,
Potentially
significant)
ESTIMATED NET EFFECT ON
SCHOOL DISTRICTS &
CHARTER SCHOOLS
(Unknown,
Potentially
significant)
(Unknown,
Potentially
significant)
(Unknown,
Potentially
significant)
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal. L.R. No. 4133S.01I
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FISCAL DESCRIPTION
This act modifies current law regarding literacy and reading education, including provisions
related to reading success plans, formerly known as reading intervention plans.
Under this act, the State Board of Education shall require literacy and reading coursework for
teacher education programs aligned to certification for teachers in early childhood, elementary,
language arts, English, special reading, and special education. Such coursework shall include the
core components of reading, oral and written language development, identification of reading
deficiencies and language difficulties, the administration of assessments, and the application of
assessment data to the classroom. (Section 161.097)
The State Board of Education, in collaboration with the Coordinating Board for Higher
Education and the Literacy Advisory Council established under this act, shall develop a plan to
establish a comprehensive system of services for reading instruction.
Each local school district and charter school shall have on file a policy for reading success plans
for any pupils of the district in grades kindergarten through four, rather than through grade three.
Each policy shall be aligned with the guidelines developed by the Department of Elementary and
Secondary Education for reading success plans. Authority to develop guidelines to assist school
districts and charter schools in formulating policies for reading success plans is transferred from
the State Board of Education to the Department. Any guidelines for instruction shall meet the
needs of the student by ensuring that instruction is explicit and systematic and diagnostic, and
based on certain elements set forth in the act. Each school shall provide supplemental reading
instruction under a reading success plan to any student who exhibits a reading deficiency.
(Section 167.268)
Each school district and charter school shall provide training on the administration of reading
assessments to all K-5 teachers and any other personnel who provide literacy instruction.
Under current law, each school district and charter school shall administer a reading assessment
to each student within 45 days of the end of the third-grade year, unless a student has been
determined in the current school year to be reading at grade level or above. Under this act, each
school district and charter school shall administer a reading assessment or set of assessments to
each student within the first 30 days of school for grades one through four, and by January 31 for
kindergarten, unless a student has been determined in the previous school year to be reading at
grade level or above. School districts and charter schools shall provide reading success plans to
students with an individualized education plan (IEP) that have a reading deficiency, and to
students receiving services under the Rehabilitation Act of 1973 whose services plan includes an
element addressing reading.
This act repeals the requirement that school districts and charter schools design a reading success
plan for the student's fourth-grade year if the student's third-grade reading assessment determines
the student is reading below second-grade level. The provision is replaced with a requirement L.R. No. 4133S.01I
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that school districts and charter schools offer a reading success plan to each K-4 student who
exhibits a reading deficiency that has been identified as being at risk for dyslexia in the statewide
dyslexia screening requirement, or has a formal diagnosis of dyslexia. The reading success plan
shall be provided in addition to the core reading instruction provided to all students, and shall
meet criteria set forth in the act.
If a student who is provided a reading success plan is determined to not be reading at or above
grade level by the end of 2nd grade, the student shall receive structured literacy instruction as
well as additional support and services. For students in grades 6-12, schools shall continue to
address the reading deficiencies of any student for whom the deficiency creates a barrier to
success in school.
A reading success plan shall be created no later than 45 days after the identification of a reading
deficiency. Such plan shall be created by the teacher and other pertinent school personnel, along
with the parent or legal guardian, and shall describe the evidence-based reading improvement
services the student shall receive. The reading success plan shall specify if a student was found
to be at risk for dyslexia in the statewide dyslexia screening requirement or if the student has a
formal diagnosis of dyslexia.
Under current law, each student for whom a reading success plan has been designed shall be
given another reading assessment to be administered within 45 days of the end of the student's
fourth-grade year. If such student is determined to be reading below third-grade level, the student
shall be required to attend summer school. This act repeals such requirement, and instead
requires such student to be referred for an evaluation for an IEP plan and the district shall
provide appropriate intensive structured literacy instruction on an individualized basis. If the
student does not qualify for an IEP, the student shall continue to receive appropriate, intensive
structured literacy instruction on an individualized basis until the student is reading at grade
level.
Each school district and charter school is required to offer summer school reading instruction to
any student with a reading success plan. Districts may fulfill the requirement through cooperative
arrangements with neighboring districts.
The parent or legal guardian of any K-5 student who exhibits a deficiency in reading shall be
notified as set forth in the act.
These provisions shall become effective on July 1, 2023. (Section 167.645, Section B)
This act establishes the Literacy Advisory Council within the Department of Elementary and
Secondary Education. The council shall include 15-20 members appointed by the Commissioner
of Education. Members shall include stakeholders and specialists specified in the act. The
advisory council shall meet biannually to review best practices in literacy instruction and related
policies, and shall make recommendations to the Commissioner and the State Board of
Education. L.R. No. 4133S.01I
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The Department, in conjunction with the Advisory Council, shall identify and create a list of
approved materials, resources, and curriculum programs for public school districts and charter
schools. A school district or charter school shall use only materials, resources, or curriculum
programs from such list. (Section 186.080)
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 Higher Education and Workforce Development
Office of the Secretary of State
Joint Committee on Administrative Rules
Springfield R-XII School District
High Point R-III School
Park Hill School District
Shell Knob School District
Wellsville -Middletown School District
Julie MorffRoss StropeDirectorAssistant DirectorJanuary 24, 2022January 24, 2022