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

SPONSOR Carraro

ORIGINAL DATE

LAST UPDATED

1/25/06

HB

SHORT TITLE Require Reading Proficiency by 4

th

Grade

SB 212

ANALYST Aguilar

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$10,000.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY06

FY07

FY08 3 Year

Total Cost

Recurring

or Non-Rec

Fund

Affected

Total

$87.0

$87.0

$174.0 Recurring General

Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Not Received From

Public Education Department (PED)

SUMMARY

Synopsis of Bill

Senate Bill 212 appropriates $10 million from the general fund to the Public Education depart-

ment for the purpose of funding reading enhancement in grades one through three in public

schools.

The bill adds provisions that a student who fails to read proficiently by the end of the third grade

shall not be promoted to the fourth grade until the student reads proficiently. The bill exempts

this provision for developmentally disabled students with a developmentally appropriate plan

approved by a licensed school employee.

Senate Bill 212 – Page 2

FISCAL IMPLICATIONS

The appropriation of $10 million contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of fiscal year 2007 shall revert

to the general fund.

The LFC FY07 appropriation recommendation is balanced between revenues and expenditures

and any increase in recurring funding must be offset by reductions in other areas of the recom-

mendation. The Legislature must consider all priorities and funding requirements to find reve-

nue to support this legislation.

PED in 2005 estimated the cost for retaining students would be approximately $2.1 million based

upon estimated costs of $1 thousand per student in the Reading First program, $750 for begin-

ning step, and $500 for those nearing proficiency. The department further estimated administra-

tive costs of $87 thousand and 2 FTE to administer the program.

SIGNIFICANT ISSUES

PED in the past has stated the bill would change the scope of current statutes which allows a par-

ent or guardian to sign a waiver indicating the desire that the student be promoted to the next

higher grade level if they have an academic improvement plan.

PED has further noted that the research on the effects of retention—particularly for students at

risk, such as those who speak a primary language other than English—suggests a strong associa-

tion between retention and student dropout rates. Furthermore, as a remediation strategy, reten-

tion does not appear to improve school performance

From assessment data from 2003-2004, approximately 23,000 could be retained for failure to

read proficiently.

PERFORMANCE IMPLICATIONS

Requiring reading proficiency for promotion to the 4

th

grade will improve performance indicators

for 4

th

grade proficiency.

ADMINISTRATIVE IMPLICATIONS

PED will have to develop procedures for awarding the funds to districts. It will need to develop

criteria, curriculum, application forms and procedures, review and award processes. In addition,

performance measures and reporting requirements will be required to determine success of the

reading enhancements funded by the appropriation.

PA/yr