COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:4133S.08P Bill No.:Perfected SS for SCS for SB Nos. 681 & 662 Subject:Education, Elementary and Secondary Type:Original Date:March 3, 2022Bill Summary:This proposal modifies provisions regarding educational outcomes.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025
General Revenue
(Unknown, could
greatly exceed
$227,802)
(Unknown, could
greatly exceed
$152,878)
(Unknown, could
greatly exceed
$153,958)
Total Estimated Net
Effect on General
Revenue
(Unknown, could
greatly exceed
$227,802)
(Unknown, could
greatly exceed
$152,878)
(Unknown, could
greatly exceed
$153,958)
Oversight notes DESE’s FY 2022 Budget Book included a $1,000,000 Governor’s
Recommendation from General Revenue to “support school innovation teams in implementing
their waivers approved by the State Board of Education”. DESE’s FY 2023 Budget Book does
not appear to include funding to support innovation waivers. Oversight assumes if there is an
appropriation for the program, it will exceed $250,000.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Evidence-Based
Reading Instruction
Program Fund*
$0$0$0
Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses.
*Transfers in from General Revenue and transfers out to School Districts and Charter schools net
to zero. L.R. No. 4133S.08P
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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 Revenue1 FTE1 FTE1 FTETotal Estimated Net
Effect on FTE1 FTE1 FTE1 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 2025
Local Government(Unknown) to
Unknown
(Unknown,
Potentially
significant)
(Unknown,
Potentially
significant) L.R. No. 4133S.08P
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FISCAL ANALYSIS
ASSUMPTION
Section 161.097 - Missouri Advisory Board for Educator Preparation
Officials from Department of Elementary and Secondary Education (DESE) estimate a one-
time meeting cost to align literacy and reading instruction in teacher preparation programs at
$40,140. (Section 161.097)
Section 161.214 School Innovation Waiver
Oversight notes DESE’s FY 2022 Budget Book included a $1,000,000 Governor’s
Recommendation from General Revenue to “support school innovation teams in implementing
their waivers approved by the State Board of Education”. DESE’s FY 2023 Budget Book does
not appear to include funding to support innovation waivers.
Oversight will show a range of impact to General Revenue of $0 (no additional cost or not
appropriated) to an unknown cost to support school innovation teams. Based on FY 2022’s
Governor Recommend, Oversight assumes the cost could exceed $250,000.
Oversight assumes there could be a cost to implement this program. School districts may have
costs related to improving student readiness and job training, increasing teacher compensation, or
improving teacher recruitment and development. Oversight will show a range of impact of $0
(no school districts participate or no additional cost) to an unknown cost to implement the
waiver. Oversight assumes the net impact on school districts would be $0 if distributions from
General Revenue cover all costs or negative net impact if implementation costs exceed state
distributions.
Section 161.241 Statewide Literacy Plan
Section 161.241 requires DESE to create an Office of Literacy to coordinate staff with roles
relating to literacy and align staff work around supporting best practices in reading instruction.
DESE assumes that a Coordinator of Literacy would be required as part of this new office at a
cost of $63,480.
This section also requires DESE to recruit and employ quality teacher trainers with expertise in
reading instruction. Because this is subject to appropriation DESE estimates a cost that could
greatly exceed $100,000. This would be subject to appropriation so DESE will show the costs as
$0 – Could Exceed $100,000. This could be funded by the proposed creation of the “Evidence-
Based Reading Instruction Program Fund."
Oversight assumes this provision creates the Evidence-Based Reading Instruction Program
Fund. The fund shall consist of moneys appropriated by the General Assembly or from gifts, L.R. No. 4133S.08P
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bequests or donations. Funds are to be distributed to school districts to reimburse school districts
and charter schools for efforts to improve literacy. For simplicity, Oversight assumes on the
money in the Fund will be used within the year it is received.
Section 167.268 - Develop Reading Guidelines
DESE estimates a one-time meeting cost to develop DESE guidelines for the Office of Literacy
at $44,600. (Section 167.268)
Sections 167.640 and 167.645 - Reading Remediation
Upon further inquiry, DESE stated this proposal could impact the call to the foundation formula
but they would have no way to estimate the impact.
Oversight assumes there could be an increased call to the foundation formula if remediation
hours outside of the traditional school day may count toward the calculation of average daily
attendance (Section 167.640). Oversight will show a range of impact of $0 (no additional
remediation hours outside the traditional school day) to an unknown cost to General Revenue for
an increase in average daily attendance.
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. However, Oversight notes this is an approximation of the cost as the state aid
payment can vary greatly by district.
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).
Oversight notes an increase of 50 ADA is approximately a 0.01% increase in total ADA
(50/843,650); therefore, Oversight assumes it is possible the cost could exceed $250,000.
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. L.R. No. 4133S.08P
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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.
Oversight assumes this proposal would require school districts and charter schools to implement
remediation strategies such as:
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
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. L.R. No. 4133S.08P
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Section 170.014 - Reading Instruction Act
Oversight assumes there could be costs to school districts to expand reading programs through
grade five. Currently, the reading programs are established for kindergarten through grade three.
Section 186.080 - Literacy Advisory Council
DESE estimates ongoing annual meeting costs to maintain the Literacy Advisory Council at
$44,600. (Section 186.080)
Responses regarding the proposed legislation as a whole
Officials from the Department of Higher Education and Workforce Development and the
Office of the State Treasurer 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.
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.
Rule Promulgation
In response to similar proposals, officials from the Joint Committee on Administrative Rules
assumed the proposal was 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
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. 4133S.08P
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FISCAL IMPACT – State GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025GENERAL REVENUECosts - meeting costs to align literacy
and reading instruction - §161.097 - p.3($40,140)$0$0
Costs - DESE - to school districts
implementing School Innovation
Waivers - §161.214 - p.3
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
Costs - DESE - §161.241 - p.3 Personnel Service($52,900)($64,115)($64,756) Fringe Benefits($29,704)($35,875)($36,108) Expense & Equipment($15,858)($8,288)($8,494)Total Costs - DESE($98,462)($108,278)($109,358)FTE Change1 FTE1 FTE1 FTE
Costs - to recruit and employ quality
teacher trainers - §161.241 - p.3
$0 to (Could
exceed
$100,000)
$0 to (Could
exceed
$100,000)
$0 to (Could
exceed
$100,000)
Transfer Out - to the Evidence-Based
Reading Instruction Program Fund -
§161.241.9 - p.3-4
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
Costs - meeting costs to develop
guidelines for the Office of Literacy -
§167.268 - p.4
($44,600)$0$0
Costs - increased ADA for remediation
hours §167.640, §167.645 & SA1 - p.4$0
$0 or
(Unknown)
$0 or
(Unknown)
Costs - annual meetings for literacy
advisory council - §186.080 - p. 6($44,600)($44,600)($44,600)ESTIMATED NET EFFECT ON
THE GENERAL REVENUE FUND
(Unknown,
could greatly
exceed
$227,802)
(Unknown,
could greatly
exceed
$152,878)
(Unknown,
could greatly
exceed
$153,958)
Estimated Net FTE Change on General
Revenue
1 FTE1 FTE1 FTE L.R. No. 4133S.08P
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FISCAL IMPACT – State Government
Continued
FY 2023
(10 Mo.)
FY 2024FY 2025EVIDENCE-BASED READING
INSTRUCTION PROGRAM FUND
Transfer In - from General Revenue -
§161.241.9 - p.3-4
$0 or
Unknown
$0 or
Unknown
$0 or
Unknown
Income - from gifts, bequests or
donations - §161.241.9 - p.3-4
$0 or
Unknown
$0 or
Unknown
$0 or
Unknown
Transfer Out - to School Districts and
Charter Schools - for efforts to improve
literacy - §161.241.9 - p.3-4
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
ESTIMATED NET EFFECT ON
THE EVIDENCE-BASED
READING INSTRUCTION
PROGRAM FUND
$0$0$0 L.R. No. 4133S.08P
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FISCAL IMPACT – Local GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025SCHOOL DISTRICTS &
CHARTER SCHOOLS
Costs - to implement School Innovation
Waivers (improve student readiness and
job training, increase teacher
compensation, improve teacher
recruitment and development) -
§161.214 - p.3
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
Revenue - distributions to support
school districts implementing School
Innovation Waivers - §161.214 - p.3
$0 or
Unknown
$0 or
Unknown
$0 or
Unknown
Transfer In - from the Evidence-Based
Reading Instruction Program Fund -
§161.241.9 - p.3-4
$0 or
Unknown
$0 or
Unknown
$0 or
Unknown
Revenue Gain - increased call to the
foundation formula for remediation
hours outside of the traditional school
day - §167.640 & SA1 - p.4
$0
$0 or
Unknown
$0 or
Unknown
Costs - reading success plans and
reading intervention for students -
§167.640, §167.645 & SA1 - p.4-5$0
(Unknown,
Potentially
significant)
(Unknown,
Potentially
significant)
Costs - to expand reading programs to
grade five - §170.014 - p.6(Unknown)(Unknown)(Unknown)
ESTIMATED NET EFFECT ON
SCHOOL DISTRICTS &
CHARTER SCHOOLS
(Unknown) to
Unknown
(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.08P
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FISCAL DESCRIPTION
Under this act, the Missouri Advisory Board for Educator Preparation (MABEP) shall include at
least three active elementary or secondary classroom teachers and at least three faculty members
within approved educator preparation programs. The MABEP shall hold regular meetings that
allow members to share needs and concerns and plan strategies to enhance teacher preparation.
Under the act, the State Board of Education shall, in consultation with MABEP, align literacy
and reading instruction coursework for teacher education programs. All reading and special
education certificates shall include training as outlined in the act. (Section 161.097)
Under this act, a school intervention team, which shall mean a group of persons representing
certain schools as set forth in the act, may submit a state innovation waiver plan to the State
Board of Education for certain purposes, including improving student readiness for employment,
higher education, vocational training, technical training, or any other form of career and job
training; increasing the compensation of teachers; or improving the recruitment, retention,
training, preparation, or professional development of teachers.
The Board may grant school innovation waivers to exempt schools from requirements imposed
by current law, or from any regulations promulgated by the Board or the Department of
Elementary and Secondary Education. If a school innovation waiver is granted to a school
district or group of school districts, the waiver shall be applicable to every elementary and
secondary school within the school district or group of school districts unless the plan
specifically provides otherwise.
Any plan for a school innovation waiver shall contain certain information as described in the act,
including the specific provision of law for which a waiver is being requested and an explanation
for why such provision of law inhibits the goal stated in the plan. The plan shall also demonstrate
that the intent of the law can be addressed in a more effective, efficient, or economical manner
and that the waiver or modification is necessary to implement the plan.
In evaluating a plan submitted by a school innovation team, the Board shall consider whether the
plan meets certain criteria set forth in the act. The Board may propose modifications to the plan
in cooperation with the school innovation team.
Any waiver granted under this act shall be effective for no longer than three school years, but
school innovation waivers may be renewed. No more than one school innovation waiver shall be
in effect with respect to any one elementary or secondary school at one time.
The State Board shall not authorize the waiver of any statutory requirements relating to teacher
certification, teacher tenure, or any requirement imposed by federal law. (Section 161.214)
The State Board of Education, in collaboration with the Coordinating Board for Higher
Education and the Commissioner's advisory council established by the act, shall develop a plan L.R. No. 4133S.08P
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to establish a comprehensive system of services for reading instruction. The State Board of
Education shall also create an Office of Literacy and shall take other actions relating to
improving literacy set forth in the act.
The act also creates the Evidence-based Reading Instruction Program Fund, to be used for
purposes set forth in the act. (Section 161.241)
The act changes the term "reading intervention plans" to "reading success plans" throughout the
act and applies provisions regarding such plans to charter schools. The development of
guidelines for formulating policies for such plans is changed from the State Board of Education
to the Department of Elementary and Secondary Education.
Each school district and charter school shall have on file a policy for reading success plans. The
reading success plans shall provide all parents and guardians of students with a plan that includes
suggestions for regular parent-guided home reading.
Each school district and charter school shall provide intensive reading instruction to students as
set forth in the act. (Section 167.268)
The act repeals provisions relating to reading assessments and now states that school districts and
charter schools shall assess all students enrolled in kindergarten through 3rd grade at the
beginning and end of each school year for their level of reading or reading readiness.
Additionally, all school districts and charter schools shall assess any newly enrolled student in
grades one through five for their level of reading or reading readiness.
At the beginning of the school year, each school district and charter school shall provide a
reading success plan to any student who exhibits a substantial deficiency in reading or has been
identified as being at risk of dyslexia.
Each school district or charter school shall ensure the parent or guardian of any student in
kindergarten through 3rd grade who exhibits a substantial deficiency in reading and shall provide
them information listed in the act.
If a student has a substantial reading deficiency at the end of 3rd grade, promotion or retention of
the student shall be discussed by the student's parent or guardian and appropriate school staff.
School districts and charter school shall provide students identified as having a substantial
reading deficiency with certain services as set forth in the act.
Each school district and charter school shall ensure that intensive reading instruction is provided
through a reading development initiative to each kindergarten through 5th grade student who is
assessed as exhibiting a substantial reading deficiency. Such instruction shall comply with
criteria listed in the act. (Section 167.645) L.R. No. 4133S.08P
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Each school district and charter school shall provide professional development services to
enhance the skills of elementary teachers in responding to children's unique reading issues and
needs to increase the use of evidence-based strategies. (Section 170.014.1)
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)
Senate Amendment 1
This amendment changes the effective date for Section 167.645 to January 1, 2023.
Senate Amendment 2
This amendment corrects a sectional reference error.
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 State Treasurer
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 DirectorMarch 3, 2022March 3, 2022