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

SPONSOR Vigil

DATE TYPED 2/10/05

HB 666

SHORT TITLE Business Training for School Principals

SB

ANALYST Chabot

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

See Narrative

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to HB 286 and SB 135

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

Public Education Department (PED)

SUMMARY

Synopsis of Bill

House Bill 666 amends Section 22-10A-18 covering the duties of school principals to add the

phrase “and the effective administration of the school” and requires every principal and assistant

principal to have training in business administration as required by the public school district su-

perintendent and approved by PED.

Significant Issues

The bill requires business administration training but does not define the term or content of the

training, the length of time for the training or the frequency.

DFA points out that “fiscal leadership” is a competency required for a level 3-B educational ad-

ministration license and law and regulation indicate “business administration” are required for

licensure.

House Bill 666 -- Page 2

PED assesses school districts would have to develop their own programs with review, and pre-

sumably, assistance from the department.

PERFORMANCE IMPLICATIONS

While fiscal responsibility is inherent in a principal’s job description, the amount of time re-

quired in fiscal oversight will vary from school to school depending on staff competencies and

district fiscal support. Fiscal responsibilities could detract from the other aspects of the princi-

pal’s duties as educational leader of the school.

DFA is concerned there may be an “unintended consequence of restricting the ability of colleges

and universities to provide graduate credit to individuals seeking licensure in educational ad-

ministration by specifying “training in business administration.”

FISCAL IMPLICATIONS

Additional costs may be incurred by the districts and PED in developing business administration

courses or in obtaining classes to fulfill the requirement from colleges and universities.

PED estimates a part-time FTE will be required to assist in training development, approval and

implementation of the training program.

ALTERNATIVES

DFA points out the Educational Leadership Academy proposed in SB 135 may provide a more

focused curriculum in business administration skills as well as other skills needed by school

principals and assistants.

POSSIBLE QUESTIONS

1.

Should PED develop a statewide curriculum and course content to be tailored by the dis-

tricts to suit their needs.

2.

What specific areas of business administration do principals and assistants need to ade-

quately perform their jobs.

GAC/yr:lg