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.



The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.



Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.





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



SPONSOR: HEC DATE TYPED: 02/10/99 HB 543/HECS
SHORT TITLE: Amend Technology For Education Act SB
ANALYST: Fernandez

APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY99 FY2000 FY99 FY2000
$ 82.0 $ 168.7 Recurring GF

(Parenthesis ( ) Indicate Expenditure Decreases)



SOURCES OF INFORMATION



State Department of Public Education (SDE)



SUMMARY



Synopsis of Bill



House Education Committee Substitute for House Bill 543 amends the Technology For Education Act to allow accredited private schools to receive a distribution from the Educational Technology Fund and further defines an accredited private school in the act. This bill also appropriates $82.0 to SDE for the purpose of administering the provisions of the Technology for Education Act.



Significant Issues



This bill enacts a new section of the Technology For Education Act to provide that any qualified student or person eligible to become a qualified student attending an accredited private school in any grade from 1st through 12th grade is entitled to the free use of software technology.



This bill defines software technology as: computer software; video and audio laser and CD ROM discs; video and audio tapes used to enhance learning by students that do not purport to teach religious tenets, doctrines or worship.



House Education Committee Substitute for House Bill 543 also alters the composition of the Council on Technology in Education to include one member from the accredited private school sector and one member at large. The Council's duties would be expanded to include accredited private schools.



According to SDE, the assistance provided to accredited private schools may be in conflict with the anti-donation clause of Article IX, Section 14 which provides that "neither the state nor any county, school district or municipality, except as otherwise provided in this constitution, shall directly or indirectly lend or pledge its credit or make any donation to or in aid of any person, association or public or private institution...". The department indicates that the provisions of this bill differ from the Instructional Material Law in that funds are distributed to private schools on a reimbursement basis for instructional material included on the multiple list. For purposes of instructional materials, the multiple list is a written list of instructional materials approved by the State Board of Education. This bill does not contain a provision for a multiple list which would specify allowable software technology items that may be purchased by schools.



FISCAL IMPLICATIONS



This bill appropriates $82.0 to SDE for expenditure in fiscal year 2000. Any unexpended or unencumbered balance remaining at the end of fiscal year 2000 shall revert to the general fund.



The FY99 appropriation to the Educational Technology Fund is $4,400.0. Pursuant to the act, funding is distributed to school districts on a per pupil basis. The distribution for the current fiscal year is $14.08 per public school student.



According to SDE, in 1998-99 there are 23,968 students enrolled in private schools. This bill requires that the distribution to accredited private schools shall be calculated on a one-half full-time-equivalent basis. Based on the current year distribution rate of $14.08 per student and the number of students enrolled in private institutions, an additional $168.7 would be required to maintain funding at the current level.



ADMINISTRATIVE IMPLICATIONS



SDE indicates that the administrative impact on the agency would be significant. The department would be required to administer the funds, review technology plans and required annual reports for 131 accredited private schools.



TECHNICAL ISSUES



SDE notes the following technical issue: Section 1 of the bill allows the free use of software technology for accredited private schools; however, Section 6(D) provides that an accredited private school receiving funding pursuant to the Technology for Education Act is responsible for the purchase, distribution, use and maintenance of educational technology, thus not limiting the use of the funds to software technology.



OTHER SUBSTANTIVE ISSUES



According to SDE, private schools are accredited through a State Board of Education approved educational accrediting agency. Department staff does not monitor site, policies, or curriculum of private schools accredited through an approved educational accrediting agency.



CTF/gm