HB 6 FISCAL NOTE Fiscal Review Committee Tennessee General Assembly February 3, 2025 Fiscal Analyst: Alan Hampton | Email: alan.hampton@capitol.tn.gov | Phone: 615-741-2564 HB 6 SUMMARY OF BILL: Authorizes a local education agency (LEA) to enroll children of a parent employed by the LEA who meet certain eligibility criteria into the voluntary pre-kindergarten (VPK) program if space is available. Authorizes an LEA to charge tuition and fees to the parent of such child who enrolls in the LEA's VPK program. FISCAL IMPACT: NOT SIGNIFICANT Assumptions: • Pursuant to Tenn. Code Ann. § 49-6-104: o An LEA may establish a VPK program that serves at-risk children residing in the geographic area served by the LEA; o The maximum class size is 20; and o If the number of at-risk children seeking to enroll in the VPK program does not meet the maximum class size, then the LEA may enroll children who are not at-risk and who meet certain eligibility requirements. • Additionally, Tenn. Code Ann. § 49-6-107 provides that the VPK program is subject to annual appropriations and no child shall be required to pay tuition or fees solely for the purpose of enrolling or attending a VPK program. Therefore, the number of students who may participate is limited. • For the 2024-25 school year: o Total funding for the VPK program is $113,911,200 ($85,505,734 state + $28,405,466 local); o There are 936 VPK classrooms allocated to districts; and o There are 17,152 students enrolled in VPK with 1,568 open seats remaining (as of November 1, 2024). • The proposed legislation authorizes an LEA that has available space to enroll children of a parent employed by the LEA if the children reside outside the geographic area served by the LEA and are four years of age on or before August 15. • Because enrollment in the VPK program is limited by funding and the number of available seats, expanding eligibility will not affect the size of the VPK program or the prioritization for at-risk children. Any impact to state expenditures is not significant. • The proposed legislation further authorizes an LEA to charge tuition and fees to the employee of a child who enrolls in the LEA's VPK program, but only in an amount that is no more than the LEA's costs of the child enrolling and attending the program. HB 6 2 • Given that VPK program funding is awarded per classroom based on a maximum classroom size of 20 students, and the proposed legislation does not increase the maximum classroom size, it is reasonably assumed that LEAs will not charge tuition and fees to the parents of children enrolled in a VPK program as a direct result of this legislation. • Any impact to local revenue or expenditures is estimated to be not significant. CERTIFICATION: The information contained herein is true and correct to the best of my knowledge. Bojan Savic, Executive Director