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





SPONSOR: Stewart DATE TYPED: 02/09/99 HB 242
SHORT TITLE: Alternative School Size Adjustment SB
ANALYST: Fernandez


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY99 FY2000 FY99 FY2000
$ 5,300.0 Recurring GF



(Parenthesis ( ) Indicate Expenditure Decreases)



Duplicates SB 176



SOURCES OF INFORMATION



State Department of Public Education (SDE)



SUMMARY



Synopsis of Bill



House Bill 242 proposes to amend the Public School Finance Act to allow alternative schools approved by the State Department of Public Education to generate additional program units. The bill appropriates $5,300.0 to cover the costs of the additional units.



Significant Issues



According to SDE, alternative schools serve the needs of many at-risk students who do not respond to traditional school settings.



FISCAL IMPLICATIONS



This bill appropriates $5,300.0 from the general fund to SDE for expenditure in fiscal year 2000 to fund additional program units generated by alternative schools size adjustment program units. Any unexpended or unencumbered balance remaining at the end of fiscal year 2000 shall revert to the general fund.



According to SDE, in 1998-99 districts reported enrollments at 18 approved alternative schools. These schools would have generated approximately 2,268.166 size adjustment units and using the current unit value of $2,344.09 would have received an additional $5,316.8 in funding. (See attachment).



DUPLICATION



This bill duplicates SB 176.



OTHER SUBSTANTIVE ISSUES



In 1977, the Legislature passed several bills clarifying provisions of the public school funding formula. Separate schools for kindergarten, vocational education or alternative education were prohibited from generating size adjustment units.



During the 1997 Legislature, changes were made to the public school funding formula to include an at-risk factor. The factor was created to provide funding for programs and services for at-risk youth. School districts are required to provide locally developed programs and services for at-risk youth, one of which maybe the funding of alternative schools.



CTF/njw

Attachment