COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0140H.01I Bill No.:HB 371 Subject:Education, Elementary and Secondary; Department of Elementary and Secondary
Education
Type:Original Date:January 21, 2025Bill Summary:This proposal requires the Department of Elementary and Secondary
Education to develop, use, and report student grade-level equivalence data.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028
General Revenue*($1,038,002)($21,620)($22,616)
Total Estimated Net
Effect on General
Revenue($1,038,002)($21,620)($22,616)
*Oversight notes in order for the Department of Elementary and Secondary Education to meet
the requirements of this proposal they will need to develop and revise performance level
descriptors, related assessments, notifications, and meetings that will exceed the $250,000
threshold.
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. 0140H.01I
Bill No. HB 371
Page 2 of
January 21, 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 2028Local Government$0$0$0 L.R. No. 0140H.01I
Bill No. HB 371
Page 3 of
January 21, 2025
GS:LR:OD
FISCAL ANALYSIS
ASSUMPTION
Section 160.522 – Student Grade-Level Equivalence Data
Officials from Department of Elementary and Secondary Education (DESE), assume to
revise performance-level descriptors and define grade-level equivalence therein, the department
would need to conduct on-site review/revise meetings with panelists – meeting costs and
stipends for six meeting days with 160 panelists [Four grade-span groups (primary, elementary,
middle school, high school) of 10 participants in each of four subjects (mathematics, English
language arts, science, social studies).] representing various regions of the state. $587,040 for all
review/revise meetings.
Contractor facilitation of review/revise meetings and generation of new performance level
descriptors (PLDs) that define range, threshold and are suitable for reporting. $65,500
Psychometric and measurement work to incorporate five new PLDs into the prior four PLD
structure. $175,000
Revise building, district and statewide assessment reporting; revise individual student reports
(ISRs) and related material. $100,000
Costs associated with statute-required notifications and public meetings upon revision of the
MSIP 6 Comprehensive Guide. $5,000
DESE's Office of Data System Management (ODSM) will be involved with the collection of
data and reporting including the searchable engine. DESE estimates 20 hours total for time to test
and deploy report card changes post ITSD services. The position responsible for the work is a
Research Analyst position. At this time DESE can absorb these duties, however, if multiple
pieces of legislation are passed that require additional duties that lead to additional FTE needed
DESE will seek approval for the needed FTE through the appropriations process.
Oversight notes DESE shall establish panels to review and revise the performance-level
descriptors for each academic subject and grade level. The proposal states for the 2026-27
(FY27) school year and all subsequent school years, the school accountability report card shall
include information about each student's grade-level equivalence as outlined in the proposal. For
simplicity, Oversight will show the total costs as estimated by DESE ($932,540) in FY26.
Officials from the Office of Administration – Information Technology (OA-ITSD) state it is
assumed that every new IT project/system will be bid out because all ITSD resources are at full
capacity. This project would have to be prioritized by DESE to be worked among DESE's other
projects. ITSD assumes the Report Card is a set of data processes (ETLs) that gather data that
DESE has collected from districts using the MOSIS application/system. These ETL's will need L.R. No. 0140H.01I
Bill No. HB 371
Page 4 of
January 21, 2025
GS:LR:OD
modified to handle the changes required in this legislation. ITSD estimates the project would
take 1,004.40 hours at a contract rate of $105 for a total cost of $105,462 in FY26 with on-going
support costs of $21,620 in FY27 and $22,161 in FY28.
Oversight will show the costs as estimated by OA-ITSD.
Officials from the Washington School District assume the financial impact would be for
additional training for staff on the new classifications, $5000 for the first year.
Officials from the Osage County R-I School District assume the proposal will have no fiscal
impact on their organization.
Oversight does not anticipate a measurable fiscal impact to school districts; therefore, Oversight
will reflect a zero impact in the fiscal note.
Oversight received a limited number of responses from school districts 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. Oversight only reflects the responses received from state agencies and political
subdivisions; however, 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.
FISCAL IMPACT – State
Government
FY 2026
(10 Mo.)
FY 2027FY 2028GENERAL REVENUECosts - DESE - to develop and
revise performance level descriptors,
related assessments, notifications
and meetings - §160.522($932,540)$0$0
Costs - DESE/OA-ITSD - changes
to MOSIS application - §160.522($105,462)($21,620)($22,161)
ESTIMATED NET EFFECT ON
THE GENERAL REVENUE
FUND ($1,038,002)($21,620)($22,616) L.R. No. 0140H.01I
Bill No. HB 371
Page 5 of
January 21, 2025
GS:LR:OD
FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028$0$0$0
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
This bill defines "Grade-level equivalence", a metric developed and used by the DESE to show a
student's proximity to doing grade-level work and requires DESE to establish panels to review
and revise the performance-level descriptors for each academic subject and grade level. The bill
identifies and describes the performance level descriptors as: advanced, proficient, grade level,
basic, and below basic with specified characteristics for each level.
Beginning in the 2026-27 school year and in each subsequent year the school accountability
report card must provide each student's grade-level equivalence as measured on the statewide
assessment. Data relating to the grade-level equivalence must be searchable on a building-by-
building, school-by-school, district-by-district, and statewide level. Such data must display a
percentage of students at grade level or above for each level, provided that no data will disclose
personal identification of any student except to a student's parent.
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
Julie MorffJessica HarrisDirectorAssistant DirectorJanuary 21, 2025January 21, 2025