TITLE: CONCERNING THE REDUCTION OF DROPOUT RATES IN SECONDARY SCHOOLS THROUGH PREVENTION AND INTERVENTION PROGRAMS, AND MAKING AN APPROPRIATION IN CONNECTION THEREWITH.

Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues General Fund
State Expenditures General Fund
FTE Position Change	0.0 FTE	0.0 FTE
Other State Impact: None
Effective Date: Upon signature of the Governor.
Appropriation Summary for FY 1999-2000: $25,000 General Fund spending authority to the Department of Local Affairs. No additional appropriation is required.
Local Government Impact: None

This bill, as amended by the House Education Committee, creates the Colorado Student Dropout Prevention and Intervention Program in the Youth Crime Prevention and Intervention Program for the purpose of providing services to at-risk students and their families in an effort to reduce the dropout rate in secondary schools through a combination of academic and extracurricular activities designed to enhance the overall education and edification of students in secondary schools. The program would be administered through the Department of Local Affairs.

The Youth Crime Prevention and Intervention Program Board would be expanded by two members. The Board would select the entities that would receive grants through the program, and would be responsible for monitoring the effectiveness of programs that receive funds through the program. Any moneys awarded by the Youth Crime Prevention and Intervention Program Board would be paid from moneys appropriated out of the General Fund for the program. However, not less than 10 percent of the total appropriation from the General Fund would be designated and used for programs identified in the bill. Beginning in FY 2004-05, not less than 20 percent of the total appropriation would be designated for this purpose.

Entities that may apply for a grant under the program is expanded to include any Colorado public or nonsectarian secondary school, charter school, board of cooperative services, institution of higher education, and the Colorado National Guard.

The bill creates the Student Dropout Prevention and Intervention Fund and allows for the acceptance of grants, gifts, and donations for student dropout prevention and intervention programs. The bill does not increase the total amount of moneys to be appropriated to the Youth Crime and Student Dropout Prevention and Intervention Program. However, the bill does change how those moneys may be spent. Therefore, the bill is assessed as having state fiscal impact.

The Department of Local Affairs has been appropriated $7,871,000 General Fund for FY 1998-99 for prevention intervention grants. As adopted by both houses, the Long Bill (SB99-215) for FY 1999-00 includes a General Fund appropriation of $7,171,000 for Community Services Youth Crime Prevention and Positive Intervention Program Grants. Assuming that future appropriations for this purpose remain constant, this bill would require that not less than 10 percent of this amount, or $717,100 be used for programs identified in the bill.

The current appropriation to the Department of Local Affairs for prevention intervention grants does not include any expenditures for administration of the programs. The administrative costs for this program is paid from federal funds. The Department of Local Affairs estimates the need for $25,000 to develop outcome measurement criteria and a two year student tracking mechanism to determine program effectiveness. It is anticipated that the study will be contracted through the state's university system. The amended bill contains a appropriation adjustments to the 1999 long bill. The adjustment includes a decrease in the appropriation to the Department of Local Affairs for prevention and intervention program grants by the amount of $25,000 GF, and an increase in the appropriation to the Department of Local Affairs, Community Development, Division of Local Government, Local Governments and Community Services in the amount of $25,000.

The fiscal note implies that the Department of Local Affairs would require General Fund spending authority in the amount of $25,000 in FY 1999-00 from the amount to be appropriated for prevention intervention grants to implement the provisions of the bill.