COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:3622H.02P Bill No.:Perfected HB 2287 Subject:Department of Elementary and Secondary Education; Education, Elementary and
Secondary; Children and Minors
Type:Original Date:March 5, 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 RevenueMore or
Less than ($634,505)
More or
Less than ($560,505)
More or
Less than ($561,168)
Total Estimated Net
Effect on General
Revenue
More or
Less than ($634,505)
More or
Less than ($560,505)
More or
Less than ($561,168)
*Oversight assumes there could be a cost that exceeds $250,000 to the foundation formula
depending on the school districts involved, virtual school programs’ 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.02P
Bill No. Perfected HB 2287
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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
$0 to More or
Less than $505,229
$0 to More or
Less than $534,003
$0 to More or
Less than $534,003 L.R. No. 3622H.02P
Bill No. Perfected HB 2287
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FISCAL ANALYSIS
ASSUMPTION
Due to time constraints, Oversight was unable to receive some agency responses in a timely
manner and performed limited analysis. Oversight has presented this fiscal note on the best
current information that we have or on information regarding a similar bill(s). Upon the receipt
of agency 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.
Section 161.670 as amended - Virtual School Program
Officials from Department of Elementary and Secondary Education (DESE) assume the
proposed legislation changing the calculation for average daily attendance (ADA) from the host
district's prior year average attendance percentage to the attendance provided by the virtual
provider to the host district based on dividing the total number of hours attended in a term by
enrolled virtual pupils by the actual number of hours the virtual program was in session. Because
of this change, DESE anticipates an increase in ADA to be used in calculating payments and has
calculated a cost with 2%, 4% and 6% increase and showed no increase for comparative
purposes.
DESE also updated the statewide adequacy target (SAT) from $6,375 in FY23 and FY24 to
$6,760 in FY25 and $7,145 in FY26. FY27's SAT may increase from $7,145 when it is
recalculated in two years; however, DESE is unable to estimate that amount and is using $7,145
for FY27 as well. These SAT's should have been used in DESE's estimate for HB 2287 as it was
originally filed. The original estimate was calculated by DESE's virtual school subject matter
expert who was unaware of the increase in SAT as it had remained flat for the last five years.
DESE also updated the estimates to use weighted ADA instead of calculated ADA as weighted
ADA is the basis of the host school payment.
The host districts’ prior-year average attendance percentages for 2022-2023:
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% L.R. No. 3622H.02P
Bill No. Perfected HB 2287
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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
The below table demonstrates FY25 Difference Cost based on WADA and updated SAT of
$6,760:
Name
Calculated
WADA
Difference
From
Recalculated
Host School
Payment
Using WADA2%
Difference
From
Recalculated
Host School
Payment
Using 2%
increase in
Calculated
WADA4%
Difference
From
Recalculated
Host School
Payment
Using 4%
increase in
Calculated
WADA6%
Difference
From
Recalculated
Host School
Payment
Using 6%
increase in
Calculated
WADA
STURGEON R-
V1,112.66$01,134.92 $150,432.07 1,134.92 $300,864.13 1,179.42 $ 451,296.20
SPRINGFIELD
R-XII474.11$0483.59 $64,099.67 483.59 $128,199.34 502.56 $ 192,299.02
LEE'S
SUMMIT R-VII12.371774$012.62 $1,672.66 12.62 $3,345.33 13.11
$
5,017.99
GRANDVIEW
R-II1,873.77$01,911.25 $253,334.32 1,911.25 $506,668.65 1,986.20 $ 760,002.97
LAQUEY R-V190.50878$0194.32 $25,756.79 194.32 $51,513.57 201.94 $ 77,270.36 MEHLVILLE R-
IX73.47$074.94 $9,933.14 74.94 $19,866.29 77.88 $ 29,799.43
Total $0 505,228.66 1,010,457.31 1,515,685.97 L.R. No. 3622H.02P
Bill No. Perfected HB 2287
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The below table demonstrates FY26 and FY 27 Difference Cost based on WADA and updated
SAT of $7,145:
Name
Calculated
WADA
Difference
From
Recalculated
Host School
Payment
Using WADA2%
Difference
From
Recalculated
Host School
Payment
Using 2%
increase in
Calculated
WADA4%
Difference
From
Recalculated
Host School
Payment
Using 4%
increase in
Calculated
WADA6%
Difference
From
Recalculated
Host School
Payment
Using 6%
increase in
Calculated
WADA
STURGEON
R-V1,112.66$01,134.92 $58,999.57 1,134.92 $317,999.15 1,179.42 $476,998.72
SPRINGFIELD
R-XII474.11$0483.59 $67,750.32 483.59 $135,500.64 502.56 $203,250.96
LEE'S
SUMMIT R-
VII12.371774$012.62 $1,767.93 12.62 $3,535.85 13.11 $5,303.78
GRANDVIEW
R-II1,873.77$01,911.25 $267,762.39 1,911.25 $535,524.78 1,986.20 $803,287.17
LAQUEY R-V190.50878$0194.32 $27,223.70 194.32 $54,447.41 201.94 $81,671.11 MEHLVILLE
R-IX73.47$074.94 $10,498.86 74.94 $20,997.73 77.88 $31,496.59
Total $0 534,002.77 1,068,005.55 1,602,008.32
DESE assumes changes to the Missouri Course Access Program (MOCAP) program may result
in increased ADA claimed as part of the Foundation Formula dependent upon the provider and
attendance.
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 L.R. No. 3622H.02P
Bill No. Perfected HB 2287
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$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 the quotient or the sum of the quotients
obtained by dividing the total number of hours attended in a term by enrolled pupils between the
ages of five and twenty-one by the actual number of hours that the program was in session in that
term, and the provisions of section 162.1250 shall not apply to such funding calculation.
According to the 2023 Annual Report – Missouri Course Access and Virtual School Program
there were 3,831 virtual students.
Oversight notes the calculation shall be generated by the virtual provider and provided to the
host district for submission to DESE. Virtual providers may differ in policy on how attendance is
calculated. Oversight assumes the impact to the foundation formula (if fully funded) would
depend on the school districts involved, virtual school programs’ attendance rate and local
contributions. Therefore, Oversight will show an impact of $0 (no change in attendance) to more
or less than cost as estimated by DESE at a 2% increase in attendance 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. L.R. No. 3622H.02P
Bill No. Perfected HB 2287
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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 - DESE - changes to the
foundation formula call §161.670
$0 to More or
Less than
($505,229)
$0 to More or
Less than
($534,003)
$0 to More or
Less than
($534,003)
ESTIMATED NET EFFECT ON
GENERAL REVENUE
More or
Less than
($634,505)
More or
Less than
($560,505)
More or
Less than
($561,168)
FISCAL IMPACT – Local GovernmentFY 2025
(10 Mo.)
FY 2026FY 2027PUBLIC SCHOOLS
Income - changes to the foundation
formula call §161.670
$0 to More or
Less than
$505,229
$0 to More or
Less than
$534,003
$0 to More or
Less than
$534,003
ESTIMATED NET EFFECT ON
PUBLIC SCHOOLS
$0 to More or
Less than
$505,229
$0 to More or
Less than
$534,003
$0 to More or
Less than
$534,003
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 the quotient or the
sum of the quotients obtained by dividing the total number of hours attended in a term by
enrolled pupils between the ages of five and twenty-one by the actual number of hours that the
program was in session in that term, and the provisions of section 162.1250 shall not apply to
such funding calculation. 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 L.R. No. 3622H.02P
Bill No. Perfected HB 2287
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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 DirectorMarch 5, 2024March 5, 2024