COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:3622S.05T Bill No.:Truly Agreed To and Finally Passed SS for HB 2287 Subject:Education, Elementary and Secondary; State Treasurer; Department of Elementary
and Secondary Education; Tax Credits; Appropriations; Elections
Type:Original Date:May 15, 2024Bill Summary:This proposal establishes provisions relating to elementary and secondary
education.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2025FY 2026FY 2027
*General Revenue
More or
Less than ($845,652)
More or
Less than ($744,707)
More or
Less than ($748,454)
Total Estimated Net
Effect on General
Revenue
More or
Less than ($845,652)
More or
Less than ($744,707)
More or
Less than ($748,454)
*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.
**Section 168.021 would require DESE to develop an 18-credit hour program for the
certification of individuals with bachelor's degrees. Oversight notes costs include ITSD
development and 2 FTE.
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. 3622S.05T
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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 2027General Revenue2 FTE2 FTE2 FTETotal Estimated Net
Effect on FTE2 FTE2 FTE2 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 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. 3622S.05T
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FISCAL ANALYSIS
ASSUMPTION
Section 135.713 – MO Empowerment Tax Credit Program
Officials from the Department of Revenue (DOR) assume this proposal makes grammar
changes to the Missouri Empowerment Scholarship Program and tax credit. The program and
credit were created in 2021. For informational purposes, DOR is providing the authorizations,
issuances, and redemptions since it began.
YearAuthorizedIssued
Total
Redeemed
FY 2023$10,249,109.00$8,446,888.00$2,026,624.68FY 2022$0.00$0.00$0.00FY 2021$0.00$0.00$0.00TOTALS$10,249,109.00$8,446,888.00$2,026,624.68
These grammatical changes will not have a fiscal impact on DOR.
Officials from the Department of Elementary and Secondary Education assume this
provision 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.
Section 161.670 - Virtual School Program
Officials from Department of Elementary and Secondary Education (DESE) assume the
proposed legislation changes 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. DESE
anticipates an increase in ADA to be used in calculating payments and has calculated a cost with
2%, 4% and 6% increase and also 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 L.R. No. 3622S.05T
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for FY27 as well. 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%
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. 3622S.05T
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The below table demonstrates FY25 Difference Cost based on WADA and updated SAT of
$6,760:
Name
Calculated
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-V1,1131,135150,4321,157300,8641,179451,296
Springfield
R-XII 47448464,100493128,199503192,299
Lee's
Summit R-
VII 12131,673133,345135,018
Grandview
R-II1,8741,911253,3341,949506,6691,986760,003
Laquey R-
V 19119425,75719851,51420277,270
Mehlville
R-Ix 73759,9337619,8667829,799
Total505,2291,010,4571,515,686 L.R. No. 3622S.05T
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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
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-V1,1131,13559,0001,157317,9991,179476,999
SPRINGFIELD
R-XII47448467,750493135,501503203,251
LEE'S
SUMMIT R-
VII 12131,768133,536135,304
GRANDVIEW
R-II1,8741,911267,7621,949535,5251,986803,287
LAQUEY R-V19119427,22419854,44720281,671MEHLVILLE
R-IX737510,4997620,9987831,497
Total534,0031,068,0061,602,008
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. 3622S.05T
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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.
Section 167.012 Home School
Officials from the Department of Elementary and Secondary Education assume this
provision 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 above section in the fiscal note.
Section 167.013 Family Paced Education
Officials from the Department of Elementary and Secondary Education assume this
provision 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 above section in the fiscal note.
Section 168.021 Teacher Certification
Officials from the Department of Elementary and Secondary Education (DESE) state
Section 168.021 would require DESE to develop an 18-credit hour program for the certification
of individuals with bachelor's degrees. In order to oversee this program; operation of the online
program, process transcripts and certificate applications, and provide technical assistance to
interested individuals and program participants DESE would require two FTE staff, one L.R. No. 3622S.05T
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supervisor and one administrative assistant along with associated benefits, equipment and
expenses.
Oversight will reflect the DESE (2) FTE, as provided by DESE in above statement, to properly
administer the program, in the fiscal note. DESE estimates the 18-hour course would be $200 per
participant. If an estimated 1,000 teachers participated annually the cost could be up to $200,000.
(For reference, the current substitute certificate course costs $180.) In addition, DESE assumes
the new online application would require ITSD development for approximately $50,000.
Oversight assumes the cost of up to $200,000 for the Teacher Certification Program would NOT
be a DESE liability, but rather would be paid for by each candidate. Therefore, Oversight will
not reflect the program cost estimated by DESE.
Lastly, will note the DESE - ITSD costs in the fiscal note.
Section 571.010 Weapons Offenses in Schools
Officials from the Department of Elementary and Secondary Education assume this
provision will have no fiscal impact on their organization.
Oversight notes that this Section adds a definition of "school" to provisions of law relating to
weapons offenses. The definition specifies that for these provisions of law, "school" shall mean
any charter school, a private school, or a public school, as such terms are defined in current law.
Oversight assumes by adding the definition of “school” to provisions of law relating to weapons
offenses there will be no fiscal impact.
Section 1 – Four-Day School Week Exemption
Officials from the Department of Elementary and Secondary Education assume this
provision will have no fiscal impact on their organization.
Oversight assumes this provision will have no fiscal impact. Therefore, Oversight will reflect a
zero impact in the fiscal note.
Responses regarding the proposed legislation as a whole
Officials from the Office of Administration - Budget and Planning assume the provisions of
this bill have no direct impact on total state revenues. DESE may have additional information
about potential costs or savings stemming from provisions for virtual schools in section 161.670.
Officials from the Office of the State Courts Administrator assume there may be some impact
but there is no way to quantify that currently. Any significant changes will be reflected in future
budget requests. L.R. No. 3622S.05T
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Officials from the Department of Mental Health, Department of Corrections, Missouri
Highway PatrolDepartment of Social Services, Office of the State Public DefenderOffice
of the State Treasurer, and Missouri Office of Prosecution Services each 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.
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
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.
Officials from the Attorney General’s Office did not respond to Oversight’s request for fiscal
impact for this proposal.
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. 3622S.05T
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FISCAL IMPACT – State GovernmentFY 2025
(10 Mo.)
FY 2026FY 2027GENERAL REVENUECosts – DESE/OA-ITSD – Teacher
Licensure §168.021($50,000)$0 $0
Costs – DESE - §168.021 Personnel Service($83,500)($102,204)($104,248) Fringe Benefits($57,396)($69,652)($70,445)Equipment and Expense($20,251)($12,346)($12,593)Total Costs – DESE ($161,147)($184,202)($187,286)FTE Change2 FTE2 FTE2 FTECosts - 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
($845,652)
More or
Less than
($744,707)
More or
Less than
($748,454)
Estimated Net FTE Change to the
General Revenue Fund2 FTE2 FTE2 FTE
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 L.R. No. 3622S.05T
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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
MISSOURI EMPOWERMENT SCHOLARSHIP ACCOUNTS PROGRAM (Section 135.713)
The bill makes changes to Section 135.713, RSMo, by changing words and phrases including
"under" to "pursuant to", "subsequent to" to "after" and "such taxpayer's" to "his or her".
MISSOURI COURSE ACCESS AND VIRTUAL SCHOOL PROGRAM (Section 161.670)
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 defined as the quotient or the sum
of the quotients obtained by dividing the total number of hours attended in a term by the actual
number of hours that the virtual program was in session. Such attendance shall be calculated by
the virtual provider and provided to the host school district for submission to the Department of
Elementary and Secondary Education (DESE).
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.
This 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 for part-time and full-time virtual school
program enrollees. This 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.
HOME SCHOOL AND FAMILY PACED EDUCATION (FPE) SCHOOLS (Sections 167.012
and 167.013)
This bill creates Section 167.012 with the term "home school" defined for specified sections
provided in the bill. This Section prohibits home school students from participation in the
Missouri Empowerment Scholarship Program under Sections 166.700 to 166.720 and the
Student Opportunity Savings Account Program created under Section 163.431. The requirements L.R. No. 3622S.05T
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for homes school children remain the same as current statutory requirements and include proof of
1000 hours of regular instruction.
The bill defines a "family-paced education school" for specified sections as provided in the bill.
This section specifies that students enrolled in a family-paced education school may participate
in both the Missouri Empowerment Scholarship Program and the Student Opportunity Savings
Account Program. The requirements for family-paced education school children are the same as
for home school students with proof of 1000 hours of regular instruction and a daily log
requirement.
TEACHER CERTIFICATION (Section 168.021)
This bill requires DESE to develop an 18-credit hour, online teacher preparation program related
to subjects appropriate for teachers in different content areas determined by the Department. The
Department may contract with an entity skilled in developing online teacher preparation
programs or a charitable organization registered in Missouri to develop and maintain the online
teacher preparation program. The entity or charitable organization must be certified to develop
and maintain the program by the Department. An individual with a bachelor's degree may
complete the online training program and receive a certificate of license to teach.
However, the certificate will not be accepted by Missouri public schools, and non-public schools
are not required to accept the certificate.
WEAPONS OFFENSES IN SCHOOLS (Section 571.010)
The bill adds a definition of "school" to provisions of law relating to weapons offenses. The
definition specifies that for these provisions of law, "school" shall mean a charter school, a
private school, or a public school, as such terms are defined in current law.
FOUR DAY SCHOOL WEEK (SECTION 1)
The bill exempts specified school districts from any state law that would require the district to
conduct an election of the voters in order to adopt a four-day school week. The provisions of this
section apply to Clinton Co. R-III and Lathrop R-II.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space. L.R. No. 3622S.05T
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SOURCES OF INFORMATION
Office of Administration - Budget and Planning
Department of Elementary and Secondary Education
Department of Mental Health
Department of Corrections
Department of Revenue
Department of Public Safety - Missouri Highway Patrol
Department of Social Services
Office of the Secretary of State
Office of the State Public Defender
Office of the State Treasurer
Joint Committee on Administrative Rules
Missouri Office of Prosecution Services
Office of the State Courts Administrator
Julie MorffRoss StropeDirectorAssistant DirectorMay 15, 2024May 15, 2024