COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:0421S.01I Bill No.:SB 177 Subject:Education, Elementary and Secondary; Department of Elementary and Secondary Education Type:Original Date:January 14, 2025Bill Summary:This proposal requires charter schools to obtain a certificate of need issued by the state board of education in order to be eligible to operate. FISCAL SUMMARY ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net Effect on General Revenue $0$0$0 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. 0421S.01I Bill No. SB 177 Page 2 of January 14, 2025 SK: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. 0421S.01I Bill No. SB 177 Page 3 of January 14, 2025 SK:LR:OD FISCAL ANALYSIS ASSUMPTION 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. Oversight notes under this proposal, no charter school established on or after August 28, 2025, shall be eligible to operate in Missouri without the State Board of Education's issuance of a certificate of need for such charter school as provided in the proposal. A certificate of need shall be required only for proposed charter schools that are not established as of August 28, 2025, and shall not be required for charter renewals or transfers of sponsorship. The act shall not be construed to exempt charter schools from state laws governing charter contracts or any other applicable state or federal law or regulation. Oversight does not anticipate a fiscal impact as a result of this proposal, therefore, will reflect a zero impact on the fiscal impact to charter schools. Oversight received no responses from charter 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 note. Oversight only reflects the responses received from state agencies and political subdivisions; however, charter school 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 2028$0$0$0FISCAL 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. L.R. No. 0421S.01I Bill No. SB 177 Page 4 of January 14, 2025 SK:LR:OD FISCAL DESCRIPTION The proposed legislation appears to have no direct fiscal impact. 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 14, 2025January 14, 2025