COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0419H.03C Bill No.:HCS for HB 607 Subject:Education, Elementary and Secondary; Teachers; Department of Elementary and
Secondary Education
Type:Original Date:February 12, 2025Bill Summary:This proposal changes teacher salary provisions and the Teacher Baseline
Salary Grant Program.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028General 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. 0419H.03C
Bill No. HCS for HB 607
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February 12, 2025
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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 FTE000
☐ 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. Oversight assumes this revenue would
not exceed $250,000. L.R. No. 0419H.03C
Bill No. HCS for HB 607
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February 12, 2025
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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 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.
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 inclement weather 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.
Section 163.172 - Baseline Teacher Salary
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.
Bill as Whole
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. L.R. No. 0419H.03C
Bill No. HCS for HB 607
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February 12, 2025
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Oversight received no 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.
FISCAL IMPACT – State
Government
FY 2026
(10 Mo.)
FY 2027FY 2028GENERAL REVENUECosts – DESE – additional funding
for 169-day calendar to schools
§163.045 $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
Government
FY 2026
(10 Mo.)
FY 2027FY 2028PUBLIC SCHOOLSRevenue - Additional State Aid
163.045 $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
This bill 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
inclement weather or authorized reductions to the number of days the district must be in session
to qualify for the funding (Section 163.045 RSMo).
The bill modifies the minimum teacher salary to remove the requirement that a teacher's master's
degree must be in an academic teaching field directly related to the teacher's assignment. L.R. No. 0419H.03C
Bill No. HCS for HB 607
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February 12, 2025
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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
Office of the State Treasurer
Julie MorffJessica HarrisDirectorAssistant DirectorFebruary 12, 2025February 12, 2025