Colorado Legislative Council Staff

STATE and LOCAL

FISCAL NOTE

General Fund Expenditure Impact

School District Revenue and Expenditure Impact


Drafting Number:

Prime Sponsor(s):

LLS 98-135

Rep. Allen

Sen. B. Alexander

Date:

Bill Status:

Fiscal Analyst:

February 7, 1998

House Education

Harry Zeid (866-4753)

 

TITLE:            CONCERNING EDUCATIONAL REFORMS, AND MAKING AN APPROPRIATION IN CONNECTION THEREWITH.


Summary of Legislation


STATE FISCAL IMPACT SUMMARY

FY 1998/99

FY 1999/2000

State Revenues

General Fund

Other Fund


 


 

State Expenditures

General Fund - School Finance

Other Fund


$1,517,206*


$1,584,816*

FTE Position Change

None

None

Local Government Impact — $2.5 million is spent annually by school districts on norm-referenced tests. Elimination of the requirement for these tests would eliminate this expense at the school district level. Additional costs at the school district level in order to comply with the bill’s requirements regarding the accreditation process and the revised statewide assessment schedule have not been estimated.

             *It is assumed that the additional expenditure necessary to revise the statewide assessment schedule would be identified as a component of the Department of Education, Public School Finance, Total Program appropriation identified in a footnote in the Long Bill. However, the total appropriation for Public School Finance would not be increased.


            This bill would require the State Board of Education to implement a public school accreditation process that focuses on student achievement results on standards-based tests, and discourages school district use of norm-referenced tests. The public school accreditation process would be designed to encourage excellence based upon student performance results on standards-based statewide and local assessments.


            The State Board of Education would establish accreditation indicators for assessing the quality of education and learning in the public schools and school districts of the state no later than September 30, 1998. The accreditation indicators would include: results on statewide assessment instruments; dropout rates; student attendance rates; graduation rates; the percentage of students taking advanced placement courses; the percentage of students taking statewide assessments; the percentage of students who are exempt from the assessment program; and results of the school district tests. The accreditation indicators would be subject to annual review.


            The State Board of Education would promulgate rules regarding how school districts measure data relating to the accreditation indicators. An annual report on achievement of the accreditation indicators would be prepared by the Department of Education.


            The Accreditation Process. The State Board of Education would accredit public schools and school districts in the state. Each school district would enter into a six-year accreditation contract with the State Board. The contract would define the standards, goals, and requirements to be met by the district over the term of the contract, and would bind the school district to improve performance in certain areas. Failure to achieve the contract requirements by a school district may result in sanctions and corrective actions. The Department of Education would be responsible for monitoring accreditation contracts, and would provide technical assistance to school districts that request assistance to improve performance on the accreditation indicators.


            The bill establishes a corrective action cycle in three levels.

 

                      Level 1: Notice. If a school district fails to comply with any of the provisions of the accreditation contract, the Department of Education would notify the school district of the nature of the lack of compliance. The school district would have 45 days to submit a plan to remedy the problem. The Department of Education would approve the plan within 30 days after receipt.

                      Level 2: Probation. A school district would be placed on probation if the district fails to implement the plan within 90 days of approval by the Department of Education.

                      Level 3: Nonaccreditation Status. The State Board of Education may remove the accreditation of a school district if the district fails to remedy its lack of compliance within 120 days after the district is placed on probationary status. Removal of accreditation would result in reorganization of the school district.

 

            Statewide Assessment Schedule. The bill would revise the statewide assessment schedule. The new schedule for statewide assessment would include:

 

                      mathematics in the 5th grade beginning Fall semester, rather than beginning Spring semester, 1999;

                      reading and writing in the 7th grade beginning Spring semester, 1999;

                      mathematics and science in the 8th grade beginning Spring semester; 2000; and

                      reading, writing, and mathematics in the 10th grade beginning in the Spring semester of 2001.


            Beginning with the Spring semester of 2003, all students enrolled in the 12th grade who scored below proficient in the statewide assessment administered in the 10th grade would be required to attain a proficient level in that assessment in order to receive a high school diploma.


            The bill is assessed as having state and school district fiscal impact. The bill would become effective July 1, 1998.




State Expenditures


            The Department of Education indicates that all of the bill’s requirements involving the Department and the State Board of Education are current responsibilities that are presently being accomplished. These functions include implementation of a school district accreditation process, preparation of annual reports, entering into contracts with school districts, providing technical assistance to school districts, and the promulgation of rules and regulations. Therefore, the Department of Education would accomplish these bill requirements within existing resources by re-focusing internal resources and efforts on accreditation and student achievement.


            Provisions of the bill requiring data collection at the school district level and at the state level is either collected, or readily available at the district level. Therefore, no additional cost is anticipated for data collection.


            Modifications to the statewide assessment schedule will add five new assessments, including reading and writing in the 7th grade beginning Spring semester, 1999; and reading, writing, and mathematics in the 10th grade beginning in the Spring semester of 2001. The current testing design was estimated to cost $12.6 million over a five-year period. The testing company estimates that the new test design will require $18,474,845, an increase of $5,874,845 over the next five years.


            The current Public School Finance Act (Section 22-54-121, C.R.S.) provides that for fiscal year 1998-99 and for fiscal years thereafter, the Department of Education may expend a portion of the total amount annually appropriated by the General Assembly for public school finance, total program, in the annual general appropriations bill as necessary to implement the Colorado Student Assessment Program; except that the amount spent by the Department in implementing the assessment program shall not exceed the limitation annually specified in a footnote to the annual general appropriations bill. If the remainder of the amount appropriated for public school finance, total program, is not sufficient to fund the state's share of total program funding for any fiscal year, the Department of Education shall withhold amounts from school districts in the manner provided in section 22-54-106 (4) (c), C.R.S. The estimate of funding for the Colorado Student Assessment Program for FY 1998-99 above the $2,450,000 amount currently requested is $1,517,206. The additional requirement for FY 1999-00 is estimated to be $1,584,816 over the estimated $3,050,000 requirement for funding based on current law.


            The bill requires that beginning with the Spring semester of 2003, all students enrolled in the 12th grade who scored below proficient in the statewide assessment administered in the 10th grade would be required to attain a proficient level in that assessment in order to receive a high school diploma. Assuming that testing would be required for an estimated 16,000 12th grade students who would score below proficient in the statewide 10th grade assessment, the annual cost for the additional testing beginning in FY 2002-03 is projected to be $514,756 in current dollars.



School District Impact


            The bill states that norm-referenced tests do not adequately promote the state’s goals for the public schools of the state, and that norm-referenced tests shall not be required. The Department of Education contacted three testing companies that provide norm-referenced tests to Colorado school districts. These companies estimated that $2.5 million is spent annually by school districts in the state on norm-referenced tests. Elimination of the requirement for these tests would eliminate this expense at the school district level. No estimate has been made to identify the savings by school district. Similarly, additional costs at the school district level in order to comply with the bill’s requirements regarding the accreditation process and the revised statewide assessment schedule have not been estimated.



Spending Authority


            The fiscal note would imply that of the General Fund appropriation footnote to the Department of Education, Public School Finance, Total Program, the amount necessary to implement the Colorado Student Assessment Program should be increased from $2,450,000 to $3,967,206 (an increase of $1,517,206) for FY 1998-99. However, the total appropriation for Public School Finance would not be increased.



Departments Contacted


            Education