COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:3663S.01I Bill No.:SB 881 Subject:Children and Minors; Department of Elementary and Secondary Education;
Employees - Employers
Type:Original Date:January 17, 2024Bill Summary:This proposal creates a child care cost-sharing pilot program.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2025FY 2026FY 2027
General Revenue*
$0 to (Unknown,
Could exceed
$3,042,606)
$0 to (Unknown,
Could exceed
$1,349,141)
$0 to (Unknown,
Could exceed
$1,351,230)
Total Estimated Net
Effect on General
Revenue
$0 to (Unknown,
Could exceed
$3,042,606)
$0 to (Unknown,
Could exceed
$1,349,141)
$0 to (Unknown,
Could exceed
$1,351,230)
*Subject to appropriation and shall include a cost-sharing arrangement between participating
employers, employees, and the state to equally share the cost of child care services provided by a
child care provider. Oversight notes the state’s portion of the child care cost could exceed
$250,000.
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. 3663S.01I
Bill No. SB 881
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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 Revenue*1 FTE1 FTE1 FTETotal Estimated Net
Effect on FTE1 FTE1 FTE1 FTE
*Subject to appropriation.
☒ 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 2027Local Government$0$0$0 L.R. No. 3663S.01I
Bill No. SB 881
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FISCAL ANALYSIS
ASSUMPTION
Officials from Department of Elementary and Secondary Education (DESE) state:
§210.054.1
The Child Care and Development Fund (CCDF) requires that families meet the traditional child
care subsidy eligibility requirements as stated in 45 CFR 98.21 in order to qualify to receive
child care assistance from the state. Implementation of this bill would conflict with these
regulations and would therefore require the department to use other funds (e.g., general revenue)
to pay for this child care pilot.
DESE does not collect the true cost of care from child care programs; however, DESE collects
the market rate for child care and DESE assumes the cost is at or above this, as follows:
• Urban area - $80.00/day
• Rural area - $40.00/day
DESE assumes the following capacity in child care programs that meet the requirements of
210.1080 RSMo. (i.e., licensed, regulated, or registered with the state):
• Urban area – 60 slots
• Rural area – 20 slots
*Assumption is that most of these slots will be filled with children birth to age 2 years old as
these are the most difficult daycare slots to find. The ratio of staff to slots for 0-2 is 1 staff person
for every 4 children.
Methodology:
#of slots (daily rate x 260 days/year) /3 = the state’s portion to pay
Assuming that all 60 slots in the urban area and 20 slots in the rural area would be filled with
children from families who fall in the range of 200 – 325 percent FPL and with 260 days of care
per year:
• 60 ($80.00 x 260)/3 = $416,000.00
• 20 ($40.00 x 260)/3 = $69,333.00
$485,333.00 State’s portion of the child care cost
In addition to the above costs, DESE Office of Childhood (OOC) would need to enhance its
current Child Care Data System (CCDS) to include a new child care program component and
payment type. The approximate cost for this enhancement is $1,700,000, based on contractor
estimate and previous costs to add a new module/program to the system. L.R. No. 3663S.01I
Bill No. SB 881
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§210.054.2. and §210.054.6
The current Community Leaders contract does not include these activities in their contractual
scope of work; therefore, DESE OOC would need to either amend the current contract to add a
provision for these services and complete reports to the Governor and general assembly
described in these sections; and an amendment is allowed by Office of Administration
Procurement; or DESE OOC would need to put a bid out for a new contractor to provide the
services and complete reports to the Governor and general assembly described in these sections.
The assumed cost for the scope of work (including one OOC FTE to manage this
contract/program) would be:
• $64,704 – One FTE (Program Specialist) + related E&E
• $220,000 - $660,000 ($55,000/month) – Contract for call center staff (one - three staff)
for child care placement for employees of partnering employers. DESE assumes phone calls
would be fielded from parents/guardians, community partners, and providers.
• $76,000 – Phone line set up for call center.
• $17,364 - Meeting costs for two meetings/month with contractor (community partners)
• $8,682 – Meeting costs for one OOC staff to meet with contractor
• $312,300 – Community partner contract for collection and reporting.
• $110,000 – Regional staff needed to coordinate placements (two regions for pilot
project).
Oversight notes that Section 210.054.4 states in order to qualify for the program, employees
shall work in Missouri for a participating employer and shall have an income between greater
than two hundred percent but less than or equal to three hundred twenty-five percent of the
federal poverty level for the applicable family size. According to data from the U.S. Department
of Health and Human Services ( 2023 Poverty Guidelines ) the following range of incomes are
those households that would be eligible to participate in the pilot program: L.R. No. 3663S.01I
Bill No. SB 881
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Household/Family
Size
200%325%1$29,160$47,3852$39,440$64,0903$49,720$80,7954$60,000$97,5005$70,280$114,2056$80,560$130,9107$90,840$147,6158$101,120$164,3209$111,400$181,02510$121,680$197,73011$131,960$214,43512$142,240$231,14013$152,520$247,84514$162,800$264,550
Oversight is unable to determine how many child care providers or employers will participate in
this program. It is also uncertain how many locations will be established or in which regions of
the state the pilot program will be set up.
This proposal is subject to appropriation and shall include a cost-sharing arrangement between
participating employers, employees, and the state to equally share the cost of child care services
provided by a child care provider. In addition to appropriations from the general assembly, the
Office of Childhood shall apply for available grants and shall be able to accept other gifts, grants,
bequests, and donations to develop and implement the program. Therefore, Oversight will show
a $0 (no appropriation) to unknown cost that could exceed the low range impact estimated by
DESE on the fiscal note ($485,333.00 State’s portion of the child care cost – page 3).
Oversight is uncertain if DESE will need to contract for a call center, community partner for
data collection and reporting, or region staff to implement this pilot program. For purposes of
this fiscal note, Oversight will adopt DESE’s low end assumption that these activities will be
needed and reflect this in the fiscal note. However, should this assumption be incorrect, this
would change the impact presented in this fiscal note.
Officials from the Department of Economic Development (DED) 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. L.R. No. 3663S.01I
Bill No. SB 881
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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.
FISCAL IMPACT – State GovernmentFY 2025
(10 Mo.)
FY 2026FY 2027GENERAL REVENUE FUND
Costs – DESE - Child Care Pilot
Program - §210.054.1 p. 3
$0 to
(Unknown,
Could exceed
$485,333)
$0 to
(Unknown,
Could exceed
$485,333)
$0 to
(Unknown,
Could exceed
$485,333)
Costs – enhancement of the CCDS$0 to
($1,700,000)
($0)($0)
Costs – Contract Call Center
$0 to ($220,000
to $660,000)
$0 to ($220,000
to $660,000)
$0 to ($220,000
to $660,000)
Costs – Other Pilot Program
administrative needs (regional staff,
phone line, meetings, data collection)$0 to
($524,346)
$0 to
($524,346)
$0 to
($524,346)
Costs – DESE - Personal service$0 to ($53,920)$0 to ($65,998)$0 to ($67,318) Fringe benefits$0 to ($33,415)$0 to ($40,600)$0 to ($41,111) Equipment and expense$0 to ($25,592)$0 to ($12,864)$0 to ($13,122)Total Costs$0 to
($112,927)
$0 to
($119,462)
$0 to
($121,551)
FTE Change – DESE1 FTE1 FTE1 FTE L.R. No. 3663S.01I
Bill No. SB 881
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FISCAL IMPACT – State GovernmentFY 2025
(10 Mo.)
FY 2026FY 2027ESTIMATED NET EFFECT ON
THE GENERAL REVENUE FUND
$0 to
(Unknown,
Could exceed
$3,042,606)
$0 to
(Unknown,
Could exceed
$1,349,141)
$0 to
(Unknown,
Could exceed
$1,351,230)
Estimated Net FTE Change on the
General Revenue Fund
1 FTE1 FTE1 FTEFISCAL IMPACT – Local GovernmentFY 2025
(10 Mo.)
FY 2026FY 2027$0$0$0
FISCAL IMPACT – Small Business
A direct fiscal impact to small businesses could be expected as a result of this proposal.
FISCAL DESCRIPTION
This act establishes, subject to appropriation, a pilot program to be administered by the Office of
Childhood, in collaboration with the Department of Economic Development. The pilot program
shall be designed to facilitate access to child care for Missouri employees and shall include a
cost-sharing arrangement between participating employers, employees, and the state to equally
share the cost of child care services provided by a child care provider. The pilot project shall use
early child care community leaders, as designated by the Office, to coordinate between providers
and participating employers and shall be established in at least one predominately rural region
and one predominately urban region.
Participating child care providers shall meet certain statutory requirements relating to
background checks and shall enter into agreements with the Office specifying the cost of child
care services for an employee for the duration of the contract and the employer, employee, and
state shares of the costs.
In order to qualify for the program, employees shall work in Missouri for a participating
employer and shall have an income between 201% to 325% of the federal poverty level.
The Office shall provide a report to the Governor and General Assembly by December 31 each
year on the effectiveness of the program in increasing access to child care for Missouri
employees and encouraging employee recruitment and retention. L.R. No. 3663S.01I
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This act shall terminate on August 28, 2030, unless reauthorized.
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 Economic Development
Office of the Secretary of State
Joint Committee on Administrative Rules
Julie MorffRoss StropeDirectorAssistant DirectorJanuary 17, 2024January 17, 2024