COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0659H.02C Bill No.:HCS for HB 368 Subject:Education, Elementary and Secondary; Department of Elementary and Secondary
Education; Children and Minors
Type:Original Date:March 6, 2025Bill Summary:This proposal changes provisions governing additional state aid provided to
school districts for increasing teacher salaries.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028
General Revenue* $0 or (Unknown)$0 or (Unknown)$0 or (Unknown)
Total Estimated Net
Effect on General
Revenue$0 or (Unknown)$0 or (Unknown)$0 or (Unknown)
* There is the potential that some schools will become eligible for additional (1% up to 2%) state
aid payments that otherwise would not have been eligible. Oversight assumes this cost would not
exceed $250,000.
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. 0659H.02C
Bill No. HCS for HB 368
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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 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 or Unknown$0 or Unknown$0 or Unknown
* There is the potential that some schools will become eligible for additional (1% up to 2%) state
aid payments that otherwise would not have been eligible. L.R. No. 0659H.02C
Bill No. HCS for HB 368
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FISCAL ANALYSIS
ASSUMPTION
Section 163.045 - Additional funding to school districts with 169-day school calendar
Officials from the Department of Elementary and Secondary Education (DESE) assume the
proposal will have no fiscal impact on their respective organization.
In addition, DESE provided the Department does not collect final calendars till the school year is
complete, so based upon the School Year (SY) 2024 actual calendar only 49 school districts had
calendars for all students claimed for state aid of 169 days or more. Please note, many LEA’s are
reviewing their SY 2025 calendars and considering adjustments based upon their LEA’s specific
benefit if they ensure calendars for all students claimed for state aid equal or exceed 169 days.
DESE expects these numbers to fluctuate as schools make decisions and changes to their
calendars.
Officials from East Buchanan Co. C-I School District assume the school district has made
every effort to meet the 169-calendar requirement. Although their calendar was already created
and approved prior to this opportunity being enacted, they already had an approved 170-day
calendar. They have used their full allotment (6 days) of AMI and have added as many days as
possible to their calendar without interrupting their summer school and going past Memorial
Day. Despite this, they are currently on track to go 168 days because of the 11 days of weather
cancellations they have endured this year.
Passage of this bill would allow their district to receive approximately $35,000 in additional
funding for teachers in the upcoming school year.
Oversight notes Section 163.045 clarifies language relating to additional funding for teacher
salaries that districts receive if the district has a school calendar with 169 school days. The
clarification provided allows for exceptional or emergency circumstances or authorized
reductions to the number of days the district must be in session to qualify for the funding.
Oversight has no way to determine how many schools will adjust their school calendar to a 169
day or more school term to obtain additional funding. There is potential that more schools will
become eligible for the amount equal to one percent for fiscal years 2026 and 2027, or two
percent for fiscal year 2028 and all subsequent fiscal years, of each district's preceding year's
annual state aid entitlement moving forward. Therefore, Oversight will reflect a $0 or Unknown
cost to GR, as well as a $0 to Unknown gain to school districts in the fiscal note.
Oversight received a limited number of responses from public 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 L.R. No. 0659H.02C
Bill No. HCS for HB 368
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note. Oversight only reflects the responses received from state agencies and political
subdivisions; however, other school districts, colleges and universities 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.
FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028GENERAL REVENUECosts – DESE – additional funding for
169-day calendar to schools §163.045
p.3
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028PUBLIC SCHOOLSRevenue - Additional State Aid
§163.045 p.3$0 or Unknown$0 or Unknown$0 or Unknown
ESTIMATED NET EFFECT ON
PUBLIC SCHOOLS
$0 or
Unknown
$0 or
Unknown
$0 or
Unknown
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
Currently, there is additional State funding for school districts that provide for 169 schools days.
This bill clarifies that a school district will still qualify for the additional funding, provided that
the district calendar includes 169 days even if they are in session fewer due to exceptional or
emergency circumstances or an authorized reduction as provided for in State law.
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. 0659H.02C
Bill No. HCS for HB 368
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SOURCES OF INFORMATION
Department of Elementary and Secondary Education
East Buchanan Co. C-I School District
Julie MorffJessica HarrisDirectorAssistant DirectorMarch 6, 2025March 6, 2025