COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:0724H.01I Bill No.:HB 1273 Subject:Education, Elementary and Secondary; Department of Elementary and Secondary Education; Athletics Type:Original Date:April 15, 2025Bill Summary:This proposal prohibits public school districts and charter schools from membership in or payment of dues to certain statewide activities associations. FISCAL SUMMARY ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net Effect on General Revenue $0$0$0 ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net Effect on Other State Funds $0$0$0 Numbers within parentheses: () indicate costs or losses. L.R. No. 0724H.01I Bill No. HB 1273 Page 2 of April 15, 2025 GS:LR:OD ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net Effect on All Federal Funds $0$0$0 ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2026FY 2027FY 2028Total 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 2026FY 2027FY 2028 Local Government* Unknown to (Unknown) Unknown to (Unknown) Unknown to (Unknown) *Unknown savings from no longer paying membership dues if prohibited from participating in a statewide activities association to unknown loss of revenue if no longer hosting events associated with a statewide activities association. L.R. No. 0724H.01I Bill No. HB 1273 Page 3 of April 15, 2025 GS:LR:OD FISCAL ANALYSIS ASSUMPTION §160.097 – Statewide Activities Associations Officials from the Department of Elementary and Secondary Education 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 for their agency. Officials from East Buchanan Co. C-1 School District assume although difficult to quantify in dollars, this would certainly have an impact on their district. The statewide activities association that they are a member of does allow competition between public and private schools. Unless they change their stance, the school would not be able to be a part of that organization under this bill. This would create a situation in which they would need to find a new governing body to establish guidelines, competitive tournaments, etc. This would certainly have an impact on the administrative capacity that they have to govern their school and activities. In response to somewhat similar legislation, SB 130 (2019), officials from the Sherwood-Cass R-VIII School District from hosting competitions, concession sales, and miscellaneous revenues through fund-raising and other methods. In response to a somewhat similar legislation, SB 130 (2019), officials from the Wellsville- Middletown R-1 School District assumed the proposal will have no fiscal impact on their organization. Oversight notes, based on the Missouri State High School Activities Association (MSHSAA) website, currently they have 750 member schools both public and private. Under MSHSAA guidelines private and public schools are allowed to play against each other. Furthermore, the MSHSAA membership fee for schools is a fixed amount per year, but the exact figure may vary depending on the school's classification (based on enrollment). In the 2023-2024 school year, the fee was $12,855 for K-5 schools, $12,702 for 6-8 schools, and $13,377 for 9-12 schools. Oversight notes that MSHSAA is the sole governing body for high school activities in Missouri. If schools are no longer allowed to be members of MSHSAA then there could be savings to schools which no longer would pay MSHSAA fees. Therefore, Oversight will reflect a zero to unknown savings for school districts and charter schools in the fiscal note. Oversight assumes some districts may experience a negative fiscal impact due to loss of revenue from hosting competitions, concession sales, and fund-raising. Oversight assumes there would be a loss in revenue to schools as they would be prohibited from participating in the statewide activities association events. Therefore, Oversight will reflect a zero to unknown loss in revenue to school districts and charter schools in the fiscal note. L.R. No. 0724H.01I Bill No. HB 1273 Page 4 of April 15, 2025 GS:LR:OD Oversight received a limited number of responses from school districts and charter schools 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. FISCAL IMPACT – State GovernmentFY 2026 (10 Mo.) FY 2027FY 2028$0$0$0FISCAL IMPACT – Local GovernmentFY 2026 (10 Mo.) FY 2027FY 2028SCHOOL DISTRICTS AND CHARTER SCHOOLS Savings – prohibition of participation in a statewide activities association (no member fee being paid) §160.097 $0 or Unknown $0 or Unknown $0 or Unknown Loss of Revenue – prohibition of participation in a statewide activities association - §167.790 $0 or (Unknown) $0 or (Unknown) §$0 or (Unknown) ESTIMATED NET EFFECT ON SCHOOL DISTRICTS AND CHARTER SCHOOLS Unknown to (Unknown) Unknown to (Unknown) Unknown to (Unknown) FISCAL IMPACT – Small Business No direct fiscal impact to small businesses would be expected as a result of this proposal. FISCAL DESCRIPTION This bill prevents public schools and charter schools in Missouri from being a member of or providing dues to any statewide activities association that allows post-season or tournament-style athletic competition between public and private schools. 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. 0724H.01I Bill No. HB 1273 Page 5 of April 15, 2025 GS:LR:OD SOURCES OF INFORMATION Department of Elementary and Secondary Education East Buchanan Co. C-I School District High Point R-III School District Sherwood-Cass R-VIII School District Springfield Public Schools Lee’s Summit R-7 School District Wellsville-Middletown R-1 School District Mississippi County Recorder of Deeds Julie MorffJessica HarrisDirectorAssistant DirectorApril 15, 2025April 15, 2025