STATE FISCAL IMPACT SUMMARY	FY 1998/99	FY 1999/2000
State Revenues General Fund Other Fund	Possible Grants, Gifts and Donations
State Expenditures General Fund Other Fund	$1,000,000	$1,000,000
FTE Position Change	None	None
Local Government Impact — None

The bill would create the Adult Basic Education Program within the Department of Education, Division of Adult Education, for the purpose of providing work force basic skills education projects and adult basic education. The program would be a joint effort between the State Board for Community Colleges and Occupational Education (SBCCOE) and the Division of Adult Education, in cooperation with the Departments of Human Services and Labor and Employment. The program would be designed to support provision of work force basic skills education services through SBCCOE and occupational education and community-based adult basic education services through the Division of Adult Education.

SBCCOE would oversee the allocation of program funds to work force basic skills education projects. Funds may be allocated to any eligible work force basic skills education project that is provided by a community college or area vocational school within the state system, a local junior college, or a community-based organization. In order to be eligible for funding through the program, a project must provide:

∙ basic skills pre-employment training or basic skills training for workers upon first being hired; or

∙ basic skills upgrade training or retraining of workers in situations where basic skills training is required for continued employment and to minimize worker dislocation; and

∙ basic skills training at an employer’s place of business or in some other location identified by the employer.

SBCCOE would adopt rules for overseeing the allocation of program funds to work force basic skills education projects, including grant application procedures, criteria for awarding grants, and reporting requirements. Projects funded through the program would be designed to provide basic skills education in mathematics and computer literacy, in reading and writing, and other skills necessary to attain proficiency in the usage and understanding of the English language.

On or before February 1, 2002, SBCCOE and the Division of Adult Education would submit a report to the Education Committees of the Senate and the House of Representatives, and to the Joint Budget Committee describing the success of the projects funded through the program.

The program would be funded by any appropriations or public or private grants, donations, gifts, or contributions received. The departmental funding request for the program is $1,000,000. The bill would become effective upon signature of the Governor.

In addition to any state funding for the operation of the program, the Adult Basic Education Program is authorized to accept public or private grants, donations, gifts, or contributions from the federal government or any private source.

The bill would create the Adult Basic Education Program within the Department of Education, Division of Adult Education, for the purpose of providing work force basic skills education projects and adult basic education as a joint effort with the State Board for Community Colleges and Occupational Education (SBCCOE). Currently, the Division of Adult Education is funded exclusively from federal funds from the U.S. Department of Education. SBCCOE would oversee the allocation of program funds to work force basic skills education projects.

SBCCOE will be requesting a decision item for FY 1998-99 in the amount of $1,000,000 (General Fund) for this project. The funding would be split evenly with the Department of Education. The $1,000,000 would be a separate line item in their budget, and would not be co-mingled with other revenue sources. Since the outcome of the request is not certain, the cost of the program is identified within the spending authority section of this fiscal note below.

SBCCOE and the Department of Education have indicated that not more than five percent of the program amount will be used for administrative expenses necessary to implement the program. On this basis, it is estimated that from the total program funding, up to $25,000 will be utilized by SBCCOE, and up to $25,000 will be utilized by the Department of Education for costs to run the program. The fiscal note assumes that unless the program is fully funded (either through an appropriation in the bill, or through a budget supplemental), no administrative expenses will be incurred.

The fiscal note would imply that SBCCOE would require General Fund spending authority in the amount of $1,000,000 during FY 1998-99 in order to implement the Adult Basic Education Program. Of this amount, $500,000 would be appropriated to the Department of Education as cash funds exempt.