Bill Summary – FastDemocracy

State of Alaska
                                                             Fiscal Note
                                                                                             Bill Version:                   CSSB 111(FIN)
 2022 Legislative Session
                                                                                             Fiscal Note Number:             10
                                                                                             (S) Publish Date:               4/12/2022
 Identifier:        SB111CS(FIN)-EED-PEF-3-16-22                               Department:       Fund Capitalization
 Title:             EARLY EDUCATION; READING INTERVENTION                      Appropriation: No Further Appropriation Required
 Sponsor:           EDUCATION                                                  Allocation:       Public Education Fund
 Requester: Senate Finance                                                     OMB Component Number:               2804
 Expenditures/Revenues
 Note: Amounts do not include inflation unless otherwise noted below.                                                             (Thousands of Dollars)
                                                 Included in
                                    FY2023       Governor's
                                Appropriation      FY2023                                           Out-Year Cost Estimates
                                  Requested       Request
 OPERATING EXPENDITURES               FY 2023        FY 2023       FY 2024                     FY 2025            FY 2026         FY 2027        FY 2028
 Personal Services
 Travel
 Services
 Commodities
 Capital Outlay
 Grants & Benefits                     3,000.0                      6,000.0                     9,000.0           12,000.0        14,999.9       17,999.8
 Miscellaneous
 Total Operating                       3,000.0            0.0       6,000.0                     9,000.0           12,000.0        14,999.9       17,999.8
 Fund Source (Operating Only)
 1004 Gen Fund (UGF)                         3,000.0                           6,000.0          9,000.0           12,000.0        14,999.9       17,999.8
 Total                                       3,000.0               0.0         6,000.0          9,000.0           12,000.0        14,999.9       17,999.8
 Positions
 Full-time
 Part-time
 Temporary
 Change in Revenues
 None
 Total                                            0.0              0.0             0.0               0.0               0.0             0.0              0.0
 Estimated SUPPLEMENTAL (FY2022) cost:                                   0.0             (separate supplemental appropriation required)
 Estimated CAPITAL (FY2023) cost:                                        0.0             (separate capital appropriation required)
 Does the bill create or modify a new fund or account?       No
 (Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
 ASSOCIATED REGULATIONS
 Does the bill direct, or will the bill result in, regulation changes adopted by your agency?                No
 If yes, by what date are the regulations to be adopted, amended or repealed?
 Why this fiscal note differs from previous version/comments:
 Updated to accurately reflect correct statutory citation for the early education program; updated the effective date from July 1, 2022 to
 July 1, 2023; and updated out year costs based on revised effective date.
 Prepared By:              Heidi Teshner, Acting Deputy Commissioner                                                Phone:    (907)465-2875
 Division:                 Finance and Support Services
                                                                   REPORT                                           Date:     03/16/2022 12:15 PM
                                                                                 ED
                                                                    SFC 04/1 OUT OF
 Approved By:              Lacey Sanders, Administrative Services Director                                          Date:     03/16/22
 Agency:                   Department of Education & Early Development
                                                                                  1/2022
Printed 4/11/2022                                                    Page 1 of 2                                                         Control Code: bGpgo
                                                                                                         CSSB 111(FIN) - Fiscal Note 10
                                                    FISCAL NOTE ANALYSIS
STATE OF ALASKA                                                                   BILL NO. CSSB 111
2022 LEGISLATIVE SESSION
Analysis
   This bill creates four new programs: an early education program, a comprehensive reading intervention program, a school
   improvement reading program, and a virtual education consortium. This fiscal note addresses the early education
   program.
   The early education program, created under AS 14.03.410, is approved by the Department of Education and Early
   Development (DEED) and funded by the state through a threeyear grant process. Once those districts have completed the
   threeyear grant cycle and DEED has determined the early education program complies with the adopted standards as
   created by the State Board of Education and Early Development, then those programs may be eligible for 1/2 the fulltime
   equivalent for average daily membership (ADM) funding under AS 14.17.410. Foundation funding would only be provided
   to those districts that are not already receiving early education funding by another state or federal program. The grant
   program and ADM funding are repealed on June 30, 2034 (FY2034).
   The current prekindergarten grant counts, as provided by the Division of Innovation and Education Excellence, were used
   in calculating anticipated foundation funding. Half of the average cost per student was used as a multiplier for purposes of
   this fiscal note. This number was derived by using the FY2022 State Aid Entitlement as of 12/21/2021 of $1,199,876,241
   and dividing it by the total ADM projected at 127,588.38 to arrive at $9,404. The average per student cost was then
   divided in half to arrive at $4,702, so as to be in alignment with the language added in AS 14.17.500(d).
   The district's prekindergarten students can transition to the foundation formula after completing the three year grant
   process. Therefore, the first approved prekindergarten program to receive state aid through the ADM would be on the
   fourth year or FY2027. Since those prekindergarten student counts cannot be determined, the following calculation of
   students are based on the cohort used for projecting the grant. Total grant funding awarded to districts may not exceed $3
   million in a fiscal year, unless the legislature appropriates another amount.
           FY2027 = 638 students x $4,702 = $2,999,876
           FY2028 = 638 students x $4,702 = $2,999,876
           FY2029 = 638 students x $4,702 = $2,999,876
           FY2030 = 638 students x $4,702 = $2,999,876
           FY2031 = 638 students x $4,702 = $2,999,876
           FY2032 = 638 students x $4,702 = $2,999,876
           FY2033 = 638 students x $4,702 = $2,999,876
           FY2034 = 638 students x $4,702 = $2,999,876
   This bill also includes transition language for districts with existing early education programs that get approved by the
   State Board of Education and Early Development, but limits the amount available under the foundation formula for
   distribution in FY2023 to $3 million, and in subsequent years not more than a $3 million increase over the prior year.
   The effective date of this bill is July 1, 2023 (FY2024).
(Revised 11/23/2021 OMB/LFD)                                                                                         Page 2 of 2
SB111CS(FIN)-EED-PEF-3-16-22                                    Page 2 of 2                                               Control Code: bGpgo
Statutes affected: 
SB0111A, AM SB 111, introduced 03/24/2021: 14.03.060, 14.07.020, U.S.C, 14.38.010, 14.30.180, 14.30.350, 14.03.072, 14.30.765, 14.03.078, 14.03.120, 14.03.123, 14.30.760, 14.30.775, 14.03.080, 14.07.165, 14.17.500, 14.17.905, 14.17.990, 14.03.420, 14.03.125, 14.03.410, 14.33.120, 14.07.030, 14.30.770, 14.07.050, 14.11.014, 14.03.040, 14.07.168, 14.03.015, 14.07.125, 14.30.800, 14.07.180, 14.14.115, 14.17.505, 14.14.050, 14.20.015, 14.20.020, 14.30.278, 14.03.030, 47.17.290
SB0111B, AM CSSB 111(EDC), introduced 04/19/2021: 14.03.040, 14.03.050, 14.03.060, 14.07.020, U.S.C, 14.38.010, 14.30.180, 14.30.350, 14.03.072, 14.30.765, 14.03.078, 14.03.120, 14.03.123, 14.30.760, 14.30.775, 14.03.420, 14.03.080, 14.07.165, 14.17.500, 14.17.990, 14.03.125, 14.03.410, 14.33.120, 14.07.030, 14.30.770, 14.07.050, 14.11.014, 14.07.168, 14.03.015, 14.07.125, 14.30.800, 14.07.180, 14.14.115, 14.17.505, 14.14.050, 14.17.905, 14.20.015, 14.20.020, 14.30.278, 14.03.030, 14.60.010, 47.17.290
SB0111C, AM CSSB 111(FIN), introduced 04/12/2022: 14.03.040, 14.03.050, 14.03.060, 14.07.020, U.S.C, 14.38.010, 14.30.180, 14.30.350, 14.03.072, 14.30.765, 14.03.078, 14.03.120, 14.03.123, 14.30.760, 14.30.780, 14.03.420, 14.03.080, 14.07.165, 14.17.500, 14.17.990, 14.03.125, 47.12.990, 14.33.120, 14.07.030, 14.30.770, 14.03.410, 14.30.800, 14.07.050, 14.11.014, 14.07.168, 14.03.015, 14.07.125, 14.07.180, 14.14.115, 14.17.905, 14.20.015, 14.20.020, 14.30.278, 14.30.775, 14.03.030, 14.60.010, 47.17.290, 14.03.290
SB0111D, AM CSSB 111(FIN) am, introduced 04/12/2022, passed Senate 04/12/2022: 14.03.040, 14.03.050, 14.03.060, 14.07.020, U.S.C, 14.38.010, 14.30.180, 14.30.350, 14.03.072, 14.30.765, 14.03.078, 14.03.120, 14.03.123, 14.30.760, 14.30.780, 14.03.420, 14.03.080, 14.07.165, 14.17.500, 14.17.990, 14.03.125, 47.12.990, 14.33.120, 14.07.030, 14.30.770, 14.03.410, 14.30.800, 14.07.050, 14.11.014, 14.07.168, 14.03.015, 14.07.125, 14.07.180, 14.14.115, 14.17.905, 14.20.015, 14.20.020, 14.30.278, 14.30.775, 14.03.030, 14.60.010, 47.17.290, 14.03.290