COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:2107S.01I Bill No.:SB 556 Subject:Education, Elementary and Secondary; Department of Elementary and Secondary
Education
Type:Original Date:March 7, 2025Bill Summary:This proposal prohibits school districts from using a three-cueing system
model of reading instruction.
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. 2107S.01I
Bill No. SB 556
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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)
*Oversight assumes there could be a potential cost to schools that currently use a three-cueing
system model of reading instruction to implement and purchase materials for a new literacy
system. L.R. No. 2107S.01I
Bill No. SB 556
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FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Elementary and Secondary Education (DESE) 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.
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.
Officials from the Washington School District assume the proposal will have no fiscal impact
on their organization.
Oversight notes that the proposal prohibits school districts 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 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 notesthe Missouri Read, Lead, Exceed Initiative 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.
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. L.R. No. 2107S.01I
Bill No. SB 556
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FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028$0$0$0FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028PUBLIC SCHOOLSCosts – School Districts – Implement
new literacy system §170.014 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
This act prohibits school districts from using a three-cueing system to teach students to read. The
act defines a "three-cueing system" as any model of teaching students to read based on meaning,
structure and syntax, and visual cues, also known as "MSV".
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. 2107S.01I
Bill No. SB 556
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SOURCES OF INFORMATION
Department of Elementary and Secondary Education
Washington School District
Julie MorffJessica HarrisDirectorAssistant DirectorMarch 7, 2025March 7, 2025