COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0200H.01I Bill No.:HB 331 Subject:Department of Higher Education and Workforce Development; Science and
Technology
Type:Original Date:February 5, 2025Bill Summary:This proposal establishes the Career-Tech Certificate (CTC) Program.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028
General Revenue*($221,673)
($113,176) Up to
($2,153,176)
($115,185) Up to
($3,315,185)
Total Estimated Net
Effect on General
Revenue($221,673)
($113,176) Up to
($2,153,176)
($115,185) Up to
($3,315,185)
*Career-Tech Certificate program is subject to appropriations; therefore, Oversight has ranged
the fiscal impact from “$0 Up to” the estimated cost by DHEWD.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Career-Tech
Certificate Program$0 $0 to Unknown$0 to Unknown
Total Estimated Net
Effect on Other State
Funds $0 $0 to Unknown$0 to Unknown
*Oversight does not anticipate income to exceed the $250,000 threshold.
Numbers within parentheses: () indicate costs or losses. L.R. No. 0200H.01I
Bill No. HB 331
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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 2028General Revenue1 FTE1 FTE1 FTETotal Estimated Net
Effect on FTE1 FTE1 FTE1 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 2026FY 2027FY 2028Local Government$0 to Unknown$0 to Unknown$0 to Unknown L.R. No. 0200H.01I
Bill No. HB 331
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FISCAL ANALYSIS
ASSUMPTION
§173.836– Career-Tech Certificate Program
Officials from the Department of Higher Education and Workforce Development (DHEWD)
state Section 173.836 creates the Career-Tech Certificate Program (CTC), which covers tuition
and fees for students, who completed the requirements for A+ while in high school, and who
attend a certificate program (currently not covered by A+). According to the Department of
Elementary and Secondary Education (DESE) data, there are, on average, 59,000 high school
graduates each year, and that trend is anticipated to remain fairly steady for at least the next 10
years. Of those students, around 2.5% attend a technical postsecondary institution, which would
be around 1,490 students a year.
The department estimates that of the 1,490 recent high school graduates who will attend a
technical/vocational school, 80 percent of them will stay in state, and 50 percent of those
students will be A+ eligible, which results in around 600 students a year. Because this legislation
is limited to programs at two-year institutions and eligible training providers but capped at the
tuition rate of community colleges (based on service area), the DHEWD estimates that the tuition
costs will be similar to the average Fast Track award amount at community colleges. As a result,
the DHEWD estimates this will cost $1.44 million (600 students * $2,404 avg. award) for FY
2027.
Additionally, the CTC program will cover the costs of training programs up to 60 credit hours or
the equivalent, which roughly equates to two academic years. The DHEWD estimates that about
half of the students will complete programs within one academic year, but that the other half will
need two years to complete, which will add an additional 300 students each year beyond FY
2027. The DHEWD also estimates the cost of books would be $500 a semester/term, which
would equate to $1,000 an academic year. This would result in a cost of $600,000 in FY 2027
but would result in $900,000 each subsequent year. For FY 2028, this would result in $2.3
million in tuition (900 students * $2,524 avg. award), plus $900,000 in books, totaling $3.2
million. Additionally, ITSD estimates a fiscal impact for changes that would be needed to
FAMOUS, which would be $147,420 in FY 2026, $30,221 in FY 2027 and $30,977 in FY 2028.
This program requires the DHEWD to review and authorize requests from private vocational or
technical schools, virtual institutions, or eligible training providers, located within a community
college service area, that offer the same or substantially similar program as that community
college. This review and authorization process will require one additional FTE, at the assistant
associate level, with an annual salary of $43,860. Additional costs include one-times costs, such
as furniture and supplies ($3,331) and ITSD Equipment ($1,865.24, plus an additional monitor
for $202.80), as well as ongoing expenses from ITSD ($4,494.74). L.R. No. 0200H.01I
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While the aforementioned costs are conservative estimates, the DHEWD is confident the fiscal
impact of section 173.836 for FY 2027 is between zero and $2.2 million. Assuming an annual
inflationary increase of five percent per year for tuition and including students, who need more
than one year to finish their programs, the impact for FY 2028 would range from zero to $3.3
million and for FY 2029 would range from zero to $3.4 million.
Oversight does not have any information to the contrary. Oversight notes the Career-Tech
Certificate (CTC) program is subject to appropriations. If the expansion occurs but is not funded,
the cost will be $0; however, the expanded CTC program could be funded any amount between
$0 and the amount estimated by DHEWD (fully funded expansion).
Officials from the Office of the State Treasurer 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.
Officials from the University of Central Missouri
revenue at UCM.
Officials from Southeast Missouri State University assume there is a potential negative impact
of an undetermined amount on Southeast Missouri State University based on the assumption the
program explicitly excludes public four-year institutions of higher education.
Officials from the University of Missouri assume no fiscal impact from the proposal on their
organization.
Oversight assumes this proposal may have a positive, but unknown fiscal impact to community
colleges and technical schools. Therefore, for fiscal note purposes, Oversight will present a $0 to
Unknown positive impact to Local Governments.
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. L.R. No. 0200H.01I
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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.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other colleges and universities were requested to respond to this proposed legislation
but did not. A general listing of political subdivisions included in the Missouri Legislative
Information System (MOLIS) database is available upon request.
FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028GENERAL REVENUECosts – DHEWD (§173.836) p.3 Personal service($36,550)($44,737)($45,632) Fringe benefits($27,809)($33,723)($34,081) Equipment and expense($5,399)$0$0Total Costs - DHEWD($69,758)($78,460)($79,713) FTE Change - DHEWD1 FTE1 FTE1 FTECosts – ITSD - DHE (§173.836) p.3 ITSD - FAMOUS Impact Changes($147,420)($30,221)($30,977) ITSD and on-going maintenance($4,495)($4,495)($4,495)Total Costs – ITSD/DHE($151,915)($34,716)($35,472)Transfer-out – to the Career-Tech
Certificate Program Fund – increase in
CTC Scholarships (§173.836) p. 3$0
$0 Up to
($2,040,000)
$0 Up to
($3,200,000)
ESTIMATED NET EFFECT ON
THE GENERAL REVENUE FUND($221,673)
($113,176) Up
to ($2,153,176)
($115,185) Up
to ($3,315,185)
Estimated Net FTE Change on the
General Revenue Fund1 FTE1 FTE1 FTE L.R. No. 0200H.01I
Bill No. HB 331
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FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028CAREER-TECH CERTIFICATE
PROGRAM FUND
Transfer-in – from General Revenue
Fund – funding for Career-Tech
Certificate Program (§173.836) p. 3$0
$0 Up to
$1,440,000
$0 Up to
$3,200,000
Income – Gifts, grants, bequests, etc.
(§173.836) p. 3$0$0 to Unknown$0 to Unknown
Costs – DHEWD (§173.836) p.3
Distribution of scholarships and book
fees $0
$0 Up to
($1,440,000)
$0 Up to
($3,200,000)
ESTIMATED NET EFFECT ON
THE CAREER-TECH
CERTIFICATE PROGRAM FUND$0
$0 to
Unknown
$0 to
Unknown
FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028LOCAL GOVERNMENTS –
COMMUNITY COLLEGES
Income – Community Colleges and
Technical Schools – increase in tuition
and fees (§173.836) $0$0 to Unknown$0 to Unknown
ESTIMATED NET EFFECT ON
LOCAL GOVERNMENTS$0
$0 to
Unknown
$0 to
Unknown
FISCAL IMPACT – Small Business
This proposal may positively impact small business education programs. (§160.555)
FISCAL DESCRIPTION
Beginning with the 2026-27 academic year, this bill creates the “Career-Tech Certificate (CTC)
Program” and the "Career-Tech Certificate (CTC) Program Fund".
This Program is for students who have met the GPA, attendance, and service requirements for
the A+ Program and are eligible for reimbursement of tuition, books, and fees, and are attending L.R. No. 0200H.01I
Bill No. HB 331
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an approved institution of postsecondary education, as defined in the bill, for an eligible program
of study or specified training program.
The bill provides reimbursement for students for one certificate program or completion of a
program of study or until a student has completed 150% of the time usually required to complete
such a program.
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 Higher Education and Workforce Development
Office of the Secretary of State
Office of the State Treasurer
University of Missouri
Southeast Missouri State University
University of Central Missouri
Joint Committee on Administrative Rules
Julie MorffJessica HarrisDirectorAssistant DirectorFebruary 5, 2025February 5, 2025