NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.



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F I S C A L I M P A C T R E P O R T





SPONSOR: Picraux DATE TYPED: 03/14/01 HB 49/aHAFC
SHORT TITLE: Change At-Risk Index Calculation SB
ANALYST: Segura


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY01 FY02 FY01 FY02
Recurring General Fund



(Parenthesis ( ) Indicate Expenditure Decreases)



SOURCES OF INFORMATION



State Department of Education SDE

LFC Files



SUMMARY



     Synopsis of HAFC Amendment



House Appropriations and Finance Committee has amended House Bill 49. The amendment to the bill removes the appropriation because the funds needed to cover the cost of the units generated are included in CS/HB-2 et al.



Synopsis of Bill



House Bill 49 amends Section 22-8-23.3 of the Public School Finance Act to change the method of calculating the at-risk index for determining additional at-risk program units. The bill also appropriates $3,000.0 to the State Department of Education for FY2002 to fund at-risk programs in public schools statewide.



Significant Issues



According to SDE, the lack of stability in the current method of calculating the at-risk index has had an adverse effect on some school districts, which has resulted in the curtailment or termination of some at-risk programs. Under the current methodology this instability is likely to continue until all districts are in compliance with federal procedures for identifying limited English proficiency students. The methodology retains the advantages of the current methodology in that it does not require the identification of students to receive funds ( avoiding the charge of "formula chasing") and it provides school districts with maximum flexibility in the design and delivery of programs for at-risk youth.



FISCAL IMPLICATIONS



House Bill 49 appropriates $3,000.0 from the general fund. The amount is based on 2000-2001 budgeted membership, at-risk program units and unit value.



CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP



The bill relates to an line item contained in the Public School Support recommendations by the LFC, LESC, State Board of Education and Executive.



RS/ar/njw