HB 380 - SB 416 FISCAL NOTE Fiscal Review Committee Tennessee General Assembly March 3, 2025 Fiscal Analyst: Alan Hampton | Email: alan.hampton@capitol.tn.gov | Phone: 615-741-2564 HB 380 - SB 416 SUMMARY OF BILL: Removes authorization for the State Board of Education (SBE) to waive the requirement that curriculum and instructional material used by virtual schools meet or exceed the SBE’s standards. Requires the Tennessee Textbook and Instructional Materials Quality Commission (Commission) to adopt a procedure for a resident of this state to appeal to the Commission for a determination that a virtual school curriculum or instructional materials meet or exceed the academic standards adopted by the SBE. Requires the Commission to determine within 60 days from the date on which an appeal was received, whether the virtual school curriculum or instructional materials meet or exceed the academic standards adopted by the SBE. If the Commission determines that a virtual school’s curriculum or instructional materials do not meet or exceed the academic standards adopted by the SBE, requires a virtual school to stop using such curriculum or instructional materials and substitute a curriculum and or instructional materials that meet or exceed the academic standards adopted by the SBE. FISCAL IMPACT: STATE GOVERNMENT REVENUE General Fund FY25-26 & Subsequent Years $1,008,000 Total Positions Required: 8 OTHER FISCAL IMPACT It is unknown how many appeals related to virtual school curriculum or instructional materials the Tennessee Textbook and Instructional Materials Quality Commission may receive. If the volume of appeals is greater than the capacity of the Commission’s staffing level, an increase in expenditures for additional positions may be required. However, due to multiple unknown variables, the extent and timing of any such increase cannot be precisely quantified. The extent and timing of any permissive increase in local expenditures cannot be determined with certainty. HB 380 - SB 416 2 Assumptions: • Pursuant to Tenn. Code Ann. § 49-16-205, a virtual school shall provide each student enrolled in the school access to a sequential curriculum that meets or exceeds the academic standards adopted by the SBE. • Pursuant to Tenn. Code Ann. § 49-6-2206(a), the SBE is authorized to issue a waiver allowing a local board of education to adopt textbooks and instructional materials not on the list of approved materials on a case-by-case basis. • The proposed legislation removes the SBE’s authority to issue a waiver allowing virtual schools to use textbooks and instructional materials not approved by the Commission. It is not known how many waivers the SBE has issued to virtual schools. • This legislation requires the Commission to receive citizen feedback and determine the validity and compliance of virtual school curriculum and instructional materials meeting or exceeding the academic standards set forth by the SBE. • The Commission currently has three full-time employees. In order to fulfill the requirements of the proposed legislation, the Commission will require additional staff, including subject matter experts in each of the six subject areas. • The total recurring increase in expenditures is estimated as follows: Title Salary Benefits # Positions Total Data Analyst $70,000 $19,641 6 $537,846 Attorney $115,000 $27,107 1 $142,107 Executive Assistant $60,000 $17,982 1 $77,982 Total: $757,935 • The Commission’s current costs to review physical textbook and instructional materials is estimated to range from $500,000 to $1,500,000 each year. • In order to evaluate virtual school curriculum and instructional materials, it is estimated that the Commission will require an additional $250,000 per year. • The total increase in state expenditures is estimated to be $1,007,935 ($757,935 + $250,000) in FY25-26 and subsequent years. • It is unknown how many appeals on virtual school curriculum or instructional materials the Commission may receive. It is assumed that the number of appeals will be low; however, if the volume of appeals increases significantly, additional staff and funding may be required in future years. • If a virtual school cannot obtain a waiver and is required to cease using their existing materials and purchase new materials that align with the requirements, an increase in local expenditures may occur. However, due to multiple factors, including the variation in contracts with textbook providers, outcome of future appeals to the Commission, and the cost to replace textbooks and instructional materials, the extent and timing of any such increase in local expenditures cannot be determined with certainty. • No impact to the SBE or the Department of Education. HB 380 - SB 416 3 CERTIFICATION: The information contained herein is true and correct to the best of my knowledge. Bojan Savic, Executive Director