Subject: Children and Minors; Courts, Juvenile; Education, Elementary and Secondary; Social Services Department

Bill Summary: This proposal provides that when social services places a child for treatment in a licensed residential care facility setting for children, such facility shall be responsible for the education needs of the child.

ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED	FY 2008	FY 2009	FY 2010


Total Estimated Net Effect on General Revenue Fund	$0	$0	$0

ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED	FY 2008	FY 2009	FY 2010
Lottery Proceeds	(Unknown but Greater than $100,000)	(Unknown but Greater than $100,000)	(Unknown but Greater than $100,000)

Total Estimated Net Effect on Other State Funds	(Unknown but Greater than $100,000)	(Unknown but Greater than $100,000)	(Unknown but Greater than $100,000)

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2008	FY 2009	FY 2010


Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)
FUND AFFECTED	FY 2008	FY 2009	FY 2010


Total Estimated Net Effect on FTE	0	0	0

☐ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).

☐ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2008	FY 2009	FY 2010
Local Government	$0	$0	$0

Officials from the Office of the State Courts Administrator and the Department of Mental Health each assume the proposal would have no fiscal impact on their respective agencies.

In response to a previous version of this proposal, officials from the Parkway Public Schools assume the proposal would have no fiscal impact on their agency.

In response to a previous version of this proposal, officials from the Mexico Public Schools assume the fiscal impact of this proposal is reasonable. The significance of the impact will vary for districts depending on the number of students effected but generally there should be no significant impact.

Officials from the Department of Elementary and Secondary Education assume it is difficult to determine the fiscal impact of educational changes proposed in this legislation, but using certain assumptions, the following costs are likely:

a. The cost to provide educational services in the “contractor setting by the contractor” are significantly higher when provided on site in a private agency setting. This increase in costs conservatively exceeds 50% or more.

b. In FY06, 3,405 children were placed in a school district (not their domicile/home district) by a state agency under Section 167.126, RSMo, and received educational services by a non-domicile district. This proposal appears to exclude educational services for 1,624 children with disabilities having an Individualized Education Plan (IEP). However, 52.31% of the children (1,781 children) did not have an IEP and could therefore be subject to the requirements in this proposal. The maximum number of children who could incur increased educational costs (based on FY06 data) could be 1,781 annually.

c. FY06 Excess Costs for Public Placement program expenditures were approximately $9 million. 52.31% (non-IEP children) x $9 million = $4,707,900 in annual excess costs allocated to this non-IEP group of children served by the existing education decision making provisions.

d. If the provisions of this proposal are implemented and the DSS contractor does in fact provide education services on site and bills the local district for the full cost of educational services, the minimum anticipated increase in educational costs (50%) would impact the Excess Costs for Public Placement program as follows: $4,707,900 x 1.5 = $7,061,850 or an increase state cost of $2,353,950.

In addition, the provisions of this proposal might result in an increase in the ADA and weighted ADA of a district and that increases cost, but there is no way to estimate such growth. Therefore, the impact to the General Revenue Fund is unknown.

Oversight assumes the additional cost for the Excess Costs for Public Placement program would be paid from the Lottery Proceeds Fund.

Oversight assumes it is unknown how many children that are in residential care facilities are attending public school or how many are receiving in-house education services provided by on-sight teaching staff. Also, it cannot be determined how much over the already contracted amount is the actual excess cost of educational services. For fiscal note purposes, Oversight will assume the cost to the Lottery Proceeds Fund will be (Unknown - Greater than $100,000).

Oversight assumes through discussions with the Division of Youth Services (DYS) that educational costs are already occurring between DYS, residential care facilities and local school districts. Therefore, for fiscal note purposes only, oversight assumes there would be no additional costs due to an increase in the ADA and weighted ADA of a district.

Officials from the Department of Social Services - Division of Youth Services assume that all existing contracts include provisions for full time education services provided by certificated teachers, thus no additional costs are anticipated.

Officials from the Department of Social Services - Children’s Division does not anticipate a fiscal or programmatic impact.

No direct fiscal impact to small businesses would be expected as a result of this proposal.

This legislation requires the Department of Social Services to provide for the educational needs of children placed in licensed residential care facilities at either an on-site school or a public school. Facilities and local school districts will be compensated for the educational services provided. The educational needs of the children in residential care facilities is specified as six hours for each regular school day spent under the guidance and direction of a teacher in an educational process.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.

FISCAL IMPACT - State Government	FY 2008 (10 Mo.)	FY 2009	FY 2010

LOTTERY PROCEEDS FUND

Costs - Department of Elementary and Secondary Education Full Day Costs of Educational Services	(Unknown but Greater than $100,000)	(Unknown but Greater than $100,000)	(Unknown but Greater than $100,000)

NET EFFECT ON LOTTERY PROCEEDS FUND	(Unknown but Greater than $100,000)	(Unknown but Greater than $100,000)	(Unknown but Greater than $100,000)