COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:0757H.01I Bill No.:HB 267 Subject:Teachers; Department of Elementary and Secondary Education, Education, Elementary and Secondary; Department of Economic Development Type:Original Date:February 18, 2025Bill Summary:This proposal modifies provisions governing teacher externships. 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. 0757H.01I Bill No. HB 267 Page 2 of February 18, 2025 BB: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 2028Local Government$0 to (Unknown)$0 to (Unknown)$0 to (Unknown) L.R. No. 0757H.01I Bill No. HB 267 Page 3 of February 18, 2025 BB:LR:OD FISCAL ANALYSIS ASSUMPTION Officials from the Department of Elementary and Secondary Education (DESE) and the Department of Economic Development (DED) both assume the proposal will have no fiscal impact on their respective organizations. Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for both above organizations. Oversight notes, with the proposal, HCS for HB 604 (2019), the DED and DESE created rules for the program regarding requirements for teacher externships to be considered equivalent to credit hours of graduate-level courses for salary schedules. Oversight notes Section 163.172 outlined the minimum starting salary for a teacher of $25,000 and for teachers with master’s degrees the minimum is $33,000. Should DED and DESE determine that externships be allowed to be substituted for graduate-level courses, Oversight assumed it was possible that teachers may move up their district’s salary schedule quicker. Oversight notes that according to the DESE Certified Externship: Information Guide https://dese.mo.gov/media/pdf/occr-pathways-certified-educator-externship-experience Requirements of the Externship Program are: 1. The externship participant is to spend a required total of 120 hours at the host industry site. This will equate to two (2) college graduate hours for possible advancement on the district’s salary schedule. The site must be a prior district-approved location. 2. Complete the outlined requirements that include the following: a. Making daily journal/reflections (one page per day) during the experience; b. Developing a unit plan, lesson plan, presentation, or improvement plan for implementation that the educator will share with instructors, administrators, board of education, or any other group as specified by the participant’s district at their direction. c. Evaluating the externship experience. d. Writing a thank you note to the host site. 3. Be punctual, appropriately dressed, and follow the host site instructions for working at the assigned facility. 4. Actively seek opportunities to learn about the company and to identify company resources that may be useful to students and colleagues. L.R. No. 0757H.01I Bill No. HB 267 Page 4 of February 18, 2025 BB:LR:OD Oversight notes according to the DESE statistics of Missouri Public School 2023-2024 there were 70,858 classroom teachers (the total potential includes some double counting of dual position holders). Oversight will show this proposal could have a $0 (no change to salary schedules) to an unknown impact, on the school districts, for increased teacher salaries due to the continuation of the program, after the proposal was set to expire August 28, 2024. Officials from the Hume R-VIII School District assume the proposal will have no fiscal impact on their organization. In response to the similar proposal HCS for HB 462 (2019), officials at the Raymore-Peculiar School District assumed they have only had teachers participate in externships using the grant and that these externships are minimal time involvement. They noted that teachers can move laterally on the salary schedule for each 8 hours of graduate credit they have. Each 8 hours is worth about $700. If the hours lead to an advanced degree, the increase in salary is $2,500 annually per teacher. In response to the similar proposal HCS for HB 462 (2019), officials at the Columbia Public Schools stated they have teachers that participate in externships in the local community and that those are done for 6-8 weeks in the summer months. In response to the similar proposal, HCS for HB 462 (2019), officials at the Belleview R-III School District stated they can not afford to hire substitute teachers and pay a teacher, so they do not participate in externships. In response to a similar proposal, HCS for HB 462 (2019), officials at the Wellsville Middletown R-1 School District do not have teachers that participate in externships. Oversight only reflects the responses received from state agencies and political subdivisions; however, other 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. 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 L.R. No. 0757H.01I Bill No. HB 267 Page 5 of February 18, 2025 BB:LR:OD 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 2026 (10 Mo.) FY 2027FY 2028$0$0$0FISCAL IMPACT – Local GovernmentFY 2026 (10 Mo.) FY 2027FY 2028LOCAL SCHOOL DISTRICTSCosts – §168.025 - Potential salary adjustments from credit earned on externships $0 to (Unknown) $0 to (Unknown) $0 to (Unknown) NET EFFECT ON THE LOCAL SCHOOL DISTRICTS $0 to (Unknown) $0 to (Unknown) $0 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 repeals the sunset provision for the teacher externship program that was set to expire August 28th, 2024. 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. 0757H.01I Bill No. HB 267 Page 6 of February 18, 2025 BB:LR:OD SOURCES OF INFORMATION Department of Elementary and Secondary Education Department of Economic Development Joint Committee on Administrative Rules Office of the Secretary of State Julie MorffJessica HarrisDirectorAssistant DirectorFebruary 18, 2025February 18, 2025