COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:3622H.02I Bill No.:HB 2287 Subject:Department of Elementary and Secondary Education; Education, Elementary and
Secondary; Children and Minors
Type:Original Date:January 21, 2024Bill Summary:This proposal modifies provisions related to the Virtual School Program.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2025FY 2026FY 2027
*General Revenue
More or Less than
$1,593,686
More or Less than
$1,696,460
More or Less than
$1,695,797
Total Estimated Net
Effect on General
Revenue
More or Less than
$1,593,686
More or Less than
$1,696,460
More or Less than
$1,695,797
*Oversight assumes there could be a savings that exceeds $250,000 to the foundation formula
depending on the school districts involved, host district’s attendance rate and local contributions.
Oversight notes the net effect to General Revenue is based on the current host districts in FY
2023 but can vary greatly year to year.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 3622H.02I
Bill No. HB 2287
Page 2 of
January 21, 2024
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2025FY 2026FY 2027Total 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 2025FY 2026FY 2027
Local Government
More or Less than
($1,722,962)
More or Less than
($1,722,962)
More or Less than
($1,722,962) L.R. No. 3622H.02I
Bill No. HB 2287
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January 21, 2024
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FISCAL ANALYSIS
ASSUMPTION
Section 161.670 - Virtual School Program
Officials from Department of Elementary and Secondary Education (DESE) assume the
proposed legislation calculates the average daily attendance of a full-time virtual student “as if
the pupil's attendance percentage equaled the host district's or charter school's prior-year average
attendance percentage, and the provisions of section 162.1250 shall not apply to such funding
calculation.”
The host districts’ prior-year average attendance percentages for 2022-2023 were (Legislation, as
written, does not define how prior year attendance is calculated. DESE assumes the current
calculation will continue.):
District
Sum of Regular
Hours Attended
Sum of
Attendance Plus
Absent Hours
Attendance
% for in-
person
students
Sturgeon R-V406,004.50435,859.7393% Springfield R-XII21,848,959.5524,107,605.9591% Lee’s Summit R-VII17,470,097.8118,645,832.2594% Grandview R-II545,260.12584,744.1893% Laquey R-V580,434.75637,941.0891% Mehlville R-IX9,527,122.5910,269,205.4193%
Below is the amount each Host School received in FY 2023:
2023 Host District Payments for MOCAP Student AttendanceDistrictAnnualized Payment Amount Sturgeon R-V$7,003,355.06 Springfield R-XII$2,550,000.00 Lee’s Summit R-VII$44,625.00 Grandview R-II$12,794,625.00 Laquey R-V$1,542,750.00 Mehlville R-IX$573,750.00 L.R. No. 3622H.02I
Bill No. HB 2287
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January 21, 2024
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The below table demonstrates state allocation for 2023 if prior-year average attendance
percentage had been used in place of the 94% virtual student attendance percentage:
District
Calculated
ADA
FY 2023 Host
School
Payment
FY 2023
Recalculated
Host School
Payment
Using Lower
Attendance
Percentage
Difference
Sturgeon R-V1019.28$7,633,843.84$6,497,910.00($1,135,933.84)Springfield R-XII474.11$3,032,351.63$3,022,451.25($9,900.38)Lee’s Summit R-
VII
7.99$69,423.11$50,936.25($18,486.86)
Grandview R-II1873.485$12,221,635.54$11,943,466.88($278,168.66)Laquey R-V188.825$1,400,534.59$1,203,759.38($196,775.22)Mehlville R-IX73.47$552,066.08$468,371.25($83,694.83)
DESE assumes changes to the Missouri Course Access Program (MOCAP) program may result
in decreased ADA claimed as part of the Foundation Formula dependent upon the provider and
attendance. This may result in a savings up to $1,722,962.
Officials from the Office of Administration – Information Technology (ITSD) state it is
assumed that every new IT project/system will be bid out because all ITSD resources are at full
capacity. This proposal discusses the calculation of the average daily attendance for full-time
virtual students, as calculated in the host district or charter school. The foundation formula is
where this calculation is made. It's assumed host and charter school funding calculations in the
Foundation Formula are in operable state and can withstand the addition or modifications in this
proposal. It's assumed the language of resident and host school reimbursement are also factors
that that need considered/estimated. It's also assumed the language about MSIP and DESE cyclic
data reporting requirements present no changes to the MSIP or data collection DESE/ITSD do
currently. ITSD assumes there will be modifications made to the foundation formula calculation.
ITSD estimates the project would take 1,231.20 hours at a contract rate of $105 for a total cost of
$129,276 in FY 2025 with on-going support costs of $26,502 in FY 2026, and $27,165 in FY
2027.
Oversight notes, currently, the attendance of a student enrolled in virtual course shall equal
ninety-four percent of the hours of attendance possible (§162.1250.3). Oversight assumes this
proposal would change the attendance calculation to equal the host district’s or charter school’s
prior-year average attendance percentage. According to the 2023 Annual Report – Missouri
Course Access and Virtual School Program there were 3,831 virtual students. L.R. No. 3622H.02I
Bill No. HB 2287
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January 21, 2024
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Oversight assumes the impact to the foundation formula (if fully funded) would depend on the
school districts involved, host district’s attendance rate and local contributions; therefore,
Oversight will show an impact of more or less than the $1,722,962 savings as estimated by
DESE with corresponding gains or losses to the school districts.
Oversight received no 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 (MOLIS) database is
available upon request.
FISCAL IMPACT – State GovernmentFY 2025
(10 Mo.)
FY 2026FY 2027GENERAL REVENUECosts - DESE/OA-ITSD -
modifications to the foundation formula
§161.670($129,276)($26,502)($27,165)
Costs/Savings - DESE - changes to the
foundation formula call §161.670
More or
Less than
$1,722,962
More or
Less than
$1,722,962
More or
Less than
$1,722,962
ESTIMATED NET EFFECT ON
GENERAL REVENUE
More or
Less than
$1,593,686
More or
Less than
$1,696,460
More or
Less than
$1,695,797
FISCAL IMPACT – Local GovernmentFY 2025
(10 Mo.)
FY 2026FY 2027PUBLIC SCHOOLS
Costs/Savings - changes to the
foundation formula call §161.670
More or
Less than
($1,722,962)
More or
Less than
($1,722,962)
More or
Less than
($1,722,962)
ESTIMATED NET EFFECT ON
PUBLIC SCHOOLS
More or
Less than
($1,722,962)
More or
Less than
($1,722,962)
More or
Less than
($1,722,962) L.R. No. 3622H.02I
Bill No. HB 2287
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January 21, 2024
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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
As specified in bill, the average daily attendance of a student who is enrolled full-time in the
Missouri Course Access and Virtual School Program shall be calculated as if such attendance
equaled the host district's average attendance percentage for the previous year. Host districts that
enroll one or more full-time virtual school students shall receive an amount of state aid specified
in the bill for such students on a monthly basis. The bill provides that students who reside in
Missouri may enroll in the virtual program of their choice. Provisions of current law regarding a
school district's approval of a student's request to enroll in a virtual program shall not apply to
full-time virtual program enrollment.
The bill requires host districts to adopt student enrollment policies for full-time virtual students
and allows virtual schools to mutually agree with resident and host districts on the services that
the resident district might offer, including possible financial reimbursements for those services.
For students with disabilities, the enrollment policy shall ensure the development of an
individualized education program and related services agreement, as necessary. The bill also
specifies that student progress reports are necessary only for part-time virtual school program
enrollees. The bill requires a student's parent or guardian, if the student is not considered
homeless, to apply for enrollment directly with the full-time virtual program.
Finally, the bill specifies that a host district may contract with a provider to perform any required
services involved with delivering a full-time virtual education.
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
Julie MorffRoss StropeDirectorAssistant DirectorJanuary 21, 2024January 21, 2024