COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0419H.03P Bill No.:Perfected HCS for HB 607 Subject:Education, Elementary and Secondary; Teachers; Department of Elementary and
Secondary Education
Type:Original Date:March 11, 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 2028
General Revenue*
More or Less than
($2,014,294)
More or Less than
($973,382)
More or Less than
($1,120,393)
Total Estimated Net
Effect on General
Revenue
More or Less than
($2,014,294)
More or Less than
($973,382)
More or Less than
($1,120,393)
* 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.
*Oversight notes that Section 161.670 of the proposal states that any virtual school or program
may administer any statewide assessment required pursuant to the provisions of section 160.518
in a virtual setting that aligns with the student’s regular academic instruction.
*In reference to Section 167.151, the amount of fiscal impact to the state depends upon the
number of students that attend a different school district based on children whose parent is
regular employee or contractor of a nonresident district. Oversight notes a difference in state aid
paid to separate school districts (ranges from under $1,000 per student to over $8,000 per
student). Therefore, Oversight assumes the net impact to General Revenue would be an unknown
cost to an unknown savings for General Revenue. Oversight assumes this would result in a
minimal number of transfers and therefore, would not exceed the $250,000 threshold.
*Oversight notes section 167.151 also states that resident school districts may still be allowed to
count students that transferred out in their weighted average daily attendance (ADA) count used
in the foundation formula calculation. Section 163.036 states school districts may use an
estimate of the weighted ADA for the current year, or the weighted ADA for the immediately L.R. No. 0419H.03P
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preceding year, or the weighted ADA attendance for the second preceding year, whichever is
greater. This could result in the state paying the resident district and the transfer district in the
same year for a student. However, since Oversight is unable to determine which year each school
district will use in future years to determine the amount of state aid each school district is entitled
to (weighted ADA), Oversight will, for purposes of this fiscal note, assume the savings/losses
will occur immediately.
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.
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. L.R. No. 0419H.03P
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ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Local
Government*
Unknown or
(Unknown)
Unknown or
(Unknown)
Unknown 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.
*Oversight assumes section 170.014 could be a potential cost to public schools and charter
schools that currently use a three-cueing system model of reading instruction to implement and
purchase materials for a new literacy system.
*Oversight notes for section 167.151 the amount of fiscal impact to the school districts depends
upon the number of students that attend a different school district based on children whose parent
is regular employee or contractor of a nonresident district. Therefore, Oversight assumes the net
impact would be unknown cost to unknown savings. L.R. No. 0419H.03P
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FISCAL ANALYSIS
ASSUMPTION
Due to time constraints, Oversight was unable to receive some agency responses in a timely
manner and performed limited analysis. Oversight has presented this fiscal note on the best
current information that we have or on information regarding a similar bill(s). Upon the receipt
of agency responses, Oversight will review to determine if an updated fiscal note should be
prepared and seek approval to publish a new fiscal note.
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. L.R. No. 0419H.03P
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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.
House Amendment 1 (HA 1)
HA 1 one amends the title, enacting clause, and intersectional references accordingly. Oversight
assumes this amendment will have no fiscal impact on the underlying bill.
House Amendment 2 (HA 2) §§161.670, 163.044, 168.021, and 170.014
Section 161.670 – Standards for Virtual Schools
In response to similar legislation, HCS for HB 220 (2025), officials from Department of
Elementary and Secondary Education stated Section 161.670, RSMo., 12. – This legislation
would allow the virtual administration of the statewide assessment of students enrolled in virtual
school.
The Missouri Technical Advisory Committee for Assessment recommends that the Department
of Elementary and Secondary Education (DESE) create a separate test form to meet the
requirements as outlined and to limit the exposure of the item bank used for all assessments.
Data Recognition Corporation (DRC) currently is contracted to do similar work and DESE
assumes would be responsible for the development of forms (tests), scoring, and reporting either
through a contract amendment or a new contract. Based on the current contract costs, fourteen
forms will need to be developed for grade levels: 3-8 English Language Arts, 3-8 Mathematics, 5
& 8 Science ($73,941 year one) and ten forms will need to be developed for end-of-course
English 1 & 2, Algebra 1 & 2, Geometry, Government, Biology, Physical Science, American
History, and Personal Finance ($69,978 year one).
This development includes the creation of forms dedicated to virtual administration, online
administration, reporting, dedicated IT services, psychometric services, validity study of virtual
administration, program coordination and manual production for virtual administration. Annual
costs for this would be:
1. $443,822, plus;
2. $200,000 annually for data forensics and test security.
In addition, DESE estimates $186,000 for camera and communication devices necessary for
remote test administration. DESE assumes the state would be responsible for providing these to
vendors with an estimated cost per camera = $30 per x 6,200 unduplicated count of students
enrolled in MoCAP 203-24 academic year = $186,000. This equipment would be returned to
vendors with an estimated annual need to replace a minimum number. Annual replacement cost
is estimated at $15,000. L.R. No. 0419H.03P
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Officials from DESE also noted that they did not include costs for college readiness or workforce
readiness assessments in the original estimate.
Oversight notes that the proposal states that any virtual school or program may administer any
statewide assessment required pursuant to the provisions of section 160.518 except for college
readiness or workforce readiness assessments provided by a national college and career readiness
assessment provider in a virtual setting that aligns with the student’s regular academic
instruction. Oversight is unable to determine how many virtual schools or programs will decide
to administer virtual assessments.
In addition, the cost of camera and communication devices necessary for remote test
administration could potentially vary depending on compatibility with specific devices as well as
the required wide degree angle of view in order to meet the requirements of the proposal.
Therefore, Oversight will reflect a $0 (no participation in virtual assessment) to a fiscal impact
that could exceed the estimate provided by DESE in the fiscal note.
In response to similar legislation, HB 220 (2025), officials from Hume R-VIII School District
assumed MOCAAP already cost their district a lot of money.
In response to similar legislation, HCS for HB 220 (2025), officials from the Northwest
Missouri State University, and Concordia R-II School District each assumed 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.
In response to a similar proposal, SB 1049 (2024), officials from the Henry County R-1 School
District assumed the proposal will have a fiscal impact on their organization.
Oversight does not anticipate a fiscal impact to school districts. However, Oversight received
limited responses from school districts related to the fiscal impact of this proposal.
In response to similar legislation, HCS for HB 220 (2025), officials from the Department of
Higher Education and Workforce Development, Office of Administration, University of
Missouri, and the University of Missouri each assumed the proposal will have no fiscal impact
on their organizations. Oversight does not have any information to the contrary. Therefore,
Oversight will reflect a zero impact in the fiscal note for these agencies.
In response to similar legislation, HCS for HB 220 (2025), officials from the
General (AGO) assumed any potential litigation costs arising from this proposal can be
absorbed with existing resources. However, the AGO may seek additional appropriations if the
proposal results in a significant increase in litigation or investigation. L.R. No. 0419H.03P
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Oversight does not have any information to the contrary. Therefore, Oversight assumes the
AGO will be able to perform any additional duties required by this proposal with current staff
and resources and will reflect no fiscal impact to the AGO for fiscal note purposes.
Section 168.021 – Teachers of tomorrow
In response to similar legislation, HB 1153 (2025), officials from the Department of
Elementary and Secondary Education and the Department of Higher Education and
Workforce Development both assumed 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 for these organizations.
In response to similar legislation, HB 1153 (2025), officials from the University of Missouri
and Northwest Missouri State University both assumed 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.
In response to similar legislation, HB 1153 (2025), officials from the University of Central
Missouri assumed there will be a fiscal impact on their organization.
Oversight notes this bill authorizes the State Board of Education to issue a Missouri teaching
certificate for individuals certified by Teachers of Tomorrow. Missouri is already allowing
teachers to gain certification through the American Board for Certification of Teacher
Excellence, this legislation just extends the accepted certification to Teachers of Tomorrow.
Therefore, Oversight will reflect a zero impact in the fiscal note.
Section 170.014 – Three- Cueing System
In response to similar legislation, SB 556 (2025), officials from the Department of Elementary
and Secondary Education assumed 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.
Upon further inquiry, DESE stated it is not clear as to how many, but some schools are
implementing a three-cueing system currently and there could be significant cost to LEAs to
replace instructional materials where they do use them.
In response to similar legislation, SB 556 (2025), officials from the Washington School District
assumed the proposal will have no fiscal impact on their organization.
Oversight notes that the proposal prohibits school districts and charter schools from using a
three-cueing system to teach students to read. Oversight is unable to determine how many
schools use this system. Oversight assumes there could be a potential cost to those schools to L.R. No. 0419H.03P
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implement and purchase materials for a new literacy system. Therefore, Oversight will reflect a
$0 or unknown impact on the fiscal note.
Oversight notes in the summer of 2022, the Missouri legislature approved the Evidence-Based
Reading Instruction Program Fund (Senate Bill 681, Section 161.241, RSMo) to be used to
reimburse LEAs for efforts to improve student literacy. DESE administers this funding and
provides support to LEAs as they move through the application process.
Oversight notes the Missouri Read, Lead, Exceed is the state's comprehensive plan to dedicate
$25 million in state funding and just over $35 million in federal relief funding to support student
literacy. DESE provides the state-approved evidence-based reading instructional materials list
that serves as a resource for schools to select materials. Local Education Agencies (LEAs) are
not required to select materials from this list. However, LEAs that are eligible to request
reimbursement for instructional materials must select materials from this list.
House amendment 3 (HA 3) - §163.045 - Additional funding to school districts with 169-day
school calendar
Oversight notes Section 163.045 clarifies language relating to additional funding for teacher
salaries that districts receive if the district has a board approved school calendar with 169 school
days or more of planned attendance. 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 assumes this amendment will have no fiscal impact
on the underlying bill.
House Amendment 4 (HA 4) – §167.151 - Admission of nonresident and other tuition pupils
In response to similar legislation, HCS for HB 1238 (2025), officials from the Department of
Elementary and Secondary Education assumed the proposal will have no fiscal impact on
their organization.
In response to similar legislation, HCS for HB 1238 (2025), officials from the Joplin School
District reviewed HB 1238 and anticipated a need to adjust current policies and practices to
accommodate a potential increase in permit requests for student enrollment. This will necessitate
a process to determine building capacity based on class sizes.
Furthermore, while an immediate, direct fiscal impact is not anticipated, Joplin Schools foresees
potential additional costs associated with serving students who may enroll through the expanded
permit process. The bill's provisions, along with existing legal obligations to serve all students
regardless of disability, may require the district to provide additional resources and support
services to meet the diverse needs of incoming students. At this time, it is challenging to
accurately estimate the extent of these potential costs. L.R. No. 0419H.03P
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Oversight notes this proposal expands who can qualify for this tuition waiver and state aid
qualification and allows any child whose parent is a contractor or regular employee of a
nonresident school district to attend such school district without paying tuition and to count as a
resident pupil for the purpose of state aid.
Oversight assumes the number of transfers cannot be estimated but assumes the number would
be minimal. Additionally, the amount of state funding is district specific (can vary from under
$1,000 per student to over $8,000 per student, depending upon the school district). Therefore,
this note will reflect a potential Unknown cost (if students would attend a school district that
receive more state aid) to an Unknown positive impact (if students would leave districts that
receive less state aid) for both general revenue and school districts. Oversight assumes that some
districts would see a net negative direct fiscal impact, while others would see a net positive direct
fiscal impact.
House Amendment 5 (HA 5) – §168.036 - Granting Substitute Teacher Certificates
Officials from the Public Education Employees’ Retirement System (PSRS/PEERS) assume
this bill, as currently drafted, extends the temporary provision allowing individuals who are
receiving a retirement benefit from PSRS or PEERS to substitute teach on a part-time or
temporary substitute basis in a covered school district without a discontinuance of the person's
retirement benefit. The provisions in this bill only apply to part-time or temporary substitute
teaching. As specified in this bill, if an individual chooses to work for a covered employer after
retirement under this provision, they will not contribute to additional retirement benefits.
This provision was enacted in 2022 with an expiration of June 30, 2025. This bill extends the
temporary provision through June 30, 2030.
The Systems have an actuary firm, PwC US (PwC), that prepares actuarial cost statements on
any proposed legislation as well as the annual actuarial valuation reports for the Systems. As
discussed in more detail below, the temporary suspension of the working after retirement
limitations as proposed in this bill could have a fiscal impact on PSRS and PEERS.
Analysis of impact on PSRS
The 550-hour and 50% of compensation limitations applicable to retired PSRS members who
return to work in substitute teaching positions is significantly less than half of the capacity
worked by a fulltime teacher and therefore limits the work a rehired retiree can perform in a
substitute teaching position without a suspension of their benefit. Suspending these limitations
through June 30, 2030 could incentivize existing PSRS members to significantly change their
retirement behavior and career planning. In addition, an extension of the working after retirement
limits suspension would give employers a greater ability to replace full-time active employees
with rehired retirees, allowing employers to save on the cost of contributions to PSRS (for part-
time or temporary substitute teaching positions). Such behavior could have a significant impact
on the cost of PSRS as earlier retirement by active members could increase the Actuarial L.R. No. 0419H.03P
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Accrued Liability, and therefore the Unfunded Actuarial Accrued Liability, and result in a
decrease in covered payroll which would increase the Actuarially Determined Contribution Rate.
However, HB 607 does include some conditions that would limit the fiscal impact, including:
• The end date for suspension of the working after retirement limitations of June 30, 2030
would limit any changes in retirement behavior and any changes in employer hiring to a
temporary period (absent further extensions).
• Retirees who return to work in substitute teaching positions would only be able to return
on a part-time or temporary basis, not on a full-time basis.
In addition, current statistical data on retired PSRS members who have returned to work since
the temporary suspension of the limits went into effect in 2022 has been reviewed. The COVID
pandemic and other legislation affecting working after retirement make it difficult to conclude
from the data whether retirement patterns have been affected by the current suspension.
However, to date, it does not appear to indicate a significant change in retirement behavior by
members or hiring practices by employers as the number of retirees working after retirement
remains below pre-pandemic levels. However, there is a recent increase in the average hours
worked and average earnings by retirees who have returned to work due to some rehired retirees
working in a capacity that would have exceeded the limitations of RSMo 169.560 if not for the
suspension of those limits for part-time or temporary substitute teaching in RSMo 168.036.
For the reasons noted above and discussed in the actuarial cost estimate, PwC estimates the
impact of extending the suspension of limitations on working after retirement for parttime or
temporary substitute teaching positions through June 30, 2030 to be an insignificant fiscal
impact if retirement behavior remains unchanged. However, there would be a fiscal cost if
there is a change in active member retirement behavior to retire earlier, resulting in fewer full-
time teachers participating in, and contributing to, PSRS, and they continue to caution that the
fiscal impact could be significant if the suspension of the limitations continues to be extended
and effectively becomes a permanent provision.
Analysis of impact on PEERS
The 550-hour limitation applicable to retired PEERS members who return to work in substitute
teaching positions is significantly less than half of the capacity worked by a full-time employee
and therefore limits the work a rehired retiree can perform without a suspension of their benefit.
Suspending these limitations through June 30, 2030 for part-time or temporary substitute
teaching positions could incentivize existing PEERS members to significantly change their
retirement behavior and career planning. In addition, an extension of the working after retirement
limits suspension would give employers a greater ability to replace full-time active employees
with rehired retirees, allowing employers to save on the cost of contributions to PEERS (for part-
time or temporary substitute teaching positions). Such behavior could have a significant impact
on the cost of PEERS as earlier retirement by active members could increase the Actuarial
Accrued Liability, and therefore the Unfunded Actuarial Accrued Liability, and result in a
decrease in covered payroll which would increase the Actuarially Determined Contribution Rate. L.R. No. 0419H.03P
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However, HB 607 does include some conditions that would limit the fiscal impact, including:
• The end date for suspension of the working after retirement limitations of June 30, 2030
would limit any changes in retirement behavior and any changes in employer hiring to a
temporary period (absent further extensions).
• Retirees who return to work in substitute teaching positions would only be able to return
on a part-time or temporary basis, not on a full-time basis.
• The number of PEERS retirees who are certificated and eligible to fill substitute teaching
positions has historically been very few.
In addition, current statistical data on retired PEERS members who have returned to work since
the temporary suspension of the limits went into effect in 2022 has been reviewed. The COVID
pandemic and other legislation affecting working after retirement make it difficult to conclude
from the data whether retirement patterns have been affected. However, to date, it does not
appear to indicate a significant change in retirement behavior by members or hiring practices by
employers, or an increase in the number of PEERS retirees being hired to fill part-time or
temporary substitute teaching positions.
For the reasons noted above and discussed in the actuarial cost estimate, PwC estimates the
impact of extending the suspension of limitations on working after retirement for parttime or
temporary substitute teaching positions through June 30, 2030 to be an insignificant fiscal
impact to PEERS. However, they continue to caution that the fiscal impact could be significant
if the suspension of the limitations continues to be extended and effectively becomes a
permanent provision.
PSRS/PEERS provide retirement benefits to approximately 132,000 active members and over
110,000 retired Missouri public school teachers, school employees, and their families. The total
invested assets of both PSRS and PEERS were $58.7 billion as of June 30, 2024.
Oversight notes this provision was enacted in 2022 with an expiration of June 30, 2025. This
proposal extends the temporary provision through June 30, 2030. Therefore, Oversight assumes
the temporary change will result in an insignificant fiscal impact to PSRS/PEERS and therefore,
no impact to member employers.
In response to similar legislation, HB 712 (2025), officials from Joint Committee on Public
Employee Retirement assumed the review of HB 712 indicates it would not create a
“substantial proposed change” in future plan benefits as defined in Section 105.660(10).
House Amendment 6 (HA 6) – §§160.518, 160.522, 160.2700, 160.2705, 160.2710, 167.167,
168.025, 173.232, and 177.086
Section 160.518 & 160.522 – Student Grade-Level Equivalence Data
In response to similar legislation, HCS for HB 371 (2025), officials from the Department of
Elementary and Secondary Education assumed to revise performance-level descriptors and L.R. No. 0419H.03P
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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 for two
years in order to follow up on all requirements.
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.
In response to similar legislation, HCS for HB 371 (2025), officials from the Office of
Administration – Information Technology (OA-ITSD) stated 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 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. L.R. No. 0419H.03P
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In response to similar legislation, HB 371 (2025), officials from the Washington School
District assumed the financial impact would be for additional training for staff on the new
classifications, $5000 for the first year.
In response to similar legislation, HB 371 (2025), officials from the Osage County R-I School
District assumed 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.
Section 160.2700, 160.2705, & 160.2710 – Adult High Schools
In response to similar legislation, HCS for HB 712 (2025), officials from DESE assumed they
currently provide childcare services to participants in Adult High Schools. Assuming the average
participation in Adult High School is 191 students/month, the average cost per child is
$639.05/month. DESE assumed a 10% increase for year one ($146,470), 20% year two
($292,940) and 30% increase year three ($439,410).
Current Contract Amount: $1,464,700.00
Oversight is uncertain if the costs estimated by DESE would be realized. Therefore, Oversight
will assume a range of impact of $0 up to the costs estimated by DESE.
Officials from the Department of Social Services (DSS) assume the proposal will have no fiscal
impact on their organization.
Oversight notes that in response to similar legislation, SB 426 (2025), officials from the DSS
stated the Children’s Division (CD) would not see an increased cost and the Family Support
Division (FSD) believes the costs would be negligible. Therefore, DSS assumes 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 for DSS.
Oversight notes DSS presented the following information in the FY26 DSS Programs Book:
The Department of Social Services (DSS) administers funding for the Adult High School (Excel
Centers), which were bid through the Department of Education and Secondary Education
(DESE) and awarded to MERS Goodwill. The Excel Centers offer public high school for adults
21 and over through flexible class schedules, supportive relationships with staff, and a life coach
who works with students to find solutions for life’s challenges that could hinder progress. While
earning their diploma, students earn college credits and a variety of industry-recognized
certifications in order to increase their earning potential. Excel Centers provide a free drop-in
center for child care, transportation assistance, extended hours and year-round operations to
support students as they work toward the goal of earning a diploma. L.R. No. 0419H.03P
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Excel Center Enrollments:
FY 2022 1,206
FY 2023 1,310
FY 2024 1,547
Section 167.167 Prohibiting zero-tolerance policies/practices of discipline in public schools
In response to similar legislation, HB 454 (2025), officials from DESE assumed this section of
the proposal will have no fiscal impact on their respective organization. Oversight does not have
any information to the contrary. Therefore, Oversight will reflect a zero impact on the fiscal
note.
Oversight does not anticipate a fiscal impact to schools as a result of this proposal, therefore,
Oversight will reflect a zero impact in the fiscal note.
Section 173.232 – Teacher recruitment and Retention State Scholarship Program
In response to similar legislation, HCS for HB 712 (2025), officials from the DESE assume this
section of 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.
In response to similar legislation, HCS for HB 712 (2025), officials from the Office of
Administration – Budget & Planning (OA-BP) assumed the provisions of this bill have no
direct impact on total state revenues. The General Revenue fund may be impacted to the extent
that the General Assembly appropriates monies for this program.
In response to similar legislation, HCS for HB 712 (2025), officials from the Department of
Higher Education and Workforce Development, Department of Corrections, and the
University of Missouri each assumed the proposal will have no fiscal impact on their
organizations.
Section 168.025 Teachers Externships
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. L.R. No. 0419H.03P
Bill No. Perfected HCS for HB 607
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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.
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.
In response to similar legislation, HCS for HB 267 (2025), officials from the Hume R-VIII
School District assumed the proposal will have no fiscal impact on their organization.
In response to the similar legislation, 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. L.R. No. 0419H.03P
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In response to the similar legislation, 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 legislation, 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 legislation, HCS for HB 462 (2019), officials at the Wellsville
Middletown R-1 School District do not have teachers that participate in externships.
In response to similar legislation, HCS for HB 267 (2025), officials from the Office of
Administration – Budget & Planning assumed the provisions of this bill have no direct impact
on total state revenues. The General Revenue fund may be impacted to the extent that the
General Assembly appropriates monies for this program.
In response to similar legislation, HCS for HB 267 (2025), officials from the Department of
Higher Education and Workforce Development, Department of Corrections, and the
University of Missouri each assumed the proposal will have no fiscal impact on their
organizations.
Section 177.086 - Construction of Facilities
Oversight notes Section 177.086.4 states “The requirements of this statute are not applicable if
the district utilizes a cooperative procurement service, state procurement services as authorized
in sections 34.046 and 67.360, services as authorized under section 67.5060, or other purchasing
processes authorized by state or federal law." Therefore, Oversight assumes there could be a zero
to unknown savings to school districts that are exempt from the requirements of this section.
Bill as Whole
Officials from the Department of Social Services, Office of AdministrationUniversity of
Central Missouri and the University of Missouri each assume the proposal will have no fiscal
impact on their respective organizations. L.R. No. 0419H.03P
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FISCAL IMPACT – State
Government
FY 2026
(10 Mo.)
FY 2027FY 2028GENERAL REVENUECosts – DESE – Student
technology for test administration
§161.670 p.5
More or less than
($186,000)
More or less than
($15,000)
More or less than
($15,000)
Costs – DESE – Data
Forensics/Test Security §161.670
p.5($200,000)($200,000)($200,000)
Costs – DRC for
development/scoring/reporting
§161.670 p.5($443,822)($443,822)($443,822)
Costs – DESE – additional funding
for 169-day calendar to schools
§163.045 p.8$0 or (Unknown)$0 or (Unknown)$0 or (Unknown)
Costs – DESE – Childcare for
Adult High schools §160.2700 p.
13
$0 up to
($146,470)
$0 up to
($292,940)
$0 up to
($439,410)
Costs - DESE - to develop and
revise performance level
descriptors, related assessments,
notifications and meetings -
§§160.518 & 160.522 p.11($932,540)$0$0
Costs - DESE/OA-ITSD - changes
to MOSIS application - §§160.518
& 160.522 p.11($105,462)($21,620)($22,161)
Costs or Cost Avoidance –
Difference in state funding for
eligible students attending
nonresident districts §167.151.6 p.9
(Unknown) or
Unknown
(Unknown) or
Unknown
(Unknown) or
Unknown
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND
More or Less
than
($2,014,294)
More or Less
than ($973,382)
More or Less
than
($1,120,393) L.R. No. 0419H.03P
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FISCAL IMPACT – Local
Government
FY 2026
(10 Mo.)
FY 2027FY 2028PUBLIC SCHOOL DISTRICTS
AND CHARTER SCHOOLS
Revenue - Additional State Aid
§163.045 p.8$0 or Unknown$0 or Unknown$0 or Unknown
Savings - exemption for
construction of facilities §177.086
p.16$0 or Unknown$0 or Unknown$0 or Unknown
Costs - Potential salary adjustments
from credit earned on externships –
§168.025 p.14$0 or (Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
Nonresident Districts - additional
State funding for non-resident
transfers but also additional costs to
educate those students §167.151.6
p. 9
Unknown or
(Unknown)
Unknown or
(Unknown)
Unknown or
(Unknown)
Resident Districts – reduced state
funding, but also possible reduction
in costs to educate those students
§167.151.6 p. 8
Unknown or
(Unknown)
Unknown or
(Unknown)
Unknown or
(Unknown)
Costs – School Districts & Charter
Schools – Implement new literacy
system §170.014 p.6$0 or (Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
ESTIMATED NET EFFECT ON
PUBLIC SCHOOL DISTRICTS
AND CHARTER SCHOOLS
Unknown or
(Unknown)
Unknown or
(Unknown)
Unknown 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 proposal makes changes to elementary and secondary education. L.R. No. 0419H.03P
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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
Joint Committee On Public Employee Retirement
Public Education Employees' Retirement System
Attorney General's Office
Office of Administration - Budget & Planning
Department of Higher Education and Workforce Development
Department of Social Services
Office of Administration
Office of the Secretary of State
University of Missouri System
Hume R-VIII School District
Concordia R-II School District
Henry County R-1 School District
Sedalia 200 School District
Washington School District
Joplin School District
Raymore-Peculiar School District
Columbia Public Schools
Belleview R-III School District
Wellsville Middletown R-1 School District
Julie MorffJessica HarrisDirectorAssistant DirectorMarch 11, 2025March 11, 2025