LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 33 HLS 22RS 164
Bill Text Version: REENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: April 12, 2022 3:41 PM Author: DEVILLIER
Dept./Agy.: Education
Subject: Education Savings Account Program Analyst: Garrett Ordner
SCHOOLS/CHOICE RE INCREASE GF EX See Note Page 1 of 2
Creates and provides for a program to provide state funding for the education of students not enrolled in public school
Proposed law creates an Education Savings Account (ESA) Program to be administered by the Department of Education
(LDE) in accordance with Board of Elementary and Secondary Education (BESE) rules. Rules must provide for eligibility,
audits, and LDE authority to deem students ineligible and to contract with vendors for administration. Requires LDE to
allocate, from funds appropriated or otherwise made available, an amount equal to the state’s average per-pupil allocation
as provided in the Minimum Foundation Program (MFP) formula, and to develop a system for parents to direct account funds
to participating providers. Provides that funds must be used for qualified educational expenses. Up to 50% of total funds
deposited into the account in a school year may roll over if unused; funds may be returned to the state general fund under
certain circumstances. Provides for student, school, and service provider eligibility. Requires the use of a nationally norm-
referenced test or statewide assessment in participating schools. Provides for reporting requirements by the LDE.
EXPENDITURES 2022-23 2023-24 2024-25 2025-26 2026-27 5 -YEAR TOTAL
State Gen. Fd. INCREASE INCREASE INCREASE INCREASE INCREASE
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 SEE BELOW SEE BELOW SEE BELOW SEE BELOW $0
Annual Total
REVENUES 2022-23 2023-24 2024-25 2025-26 2026-27 5 -YEAR TOTAL
State Gen. Fd. $0 DECREASE DECREASE DECREASE DECREASE $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 SEE BELOW SEE BELOW SEE BELOW SEE BELOW $0
Annual Total $0 $0
EXPENDITURE EXPLANATION
There will likely be an increase in state expenditures to develop and fund the Education Savings Accounts (ESA) Program.
The Department of Education (LDE) anticipates program planning and administration will cost the department $223,954 per
year. All funding for awards must be appropriated by the legislature. The LDE also estimates that in addition to the funding
appropriated for ESA awards, approximately 5% of funding made available for the program will be needed to contract with
an outside vendor to perform the majority of administrative duties, as well as paying other administrative costs that include
equipment, systems, and other potential operating costs. State costs will increase to the extent a student participates in the
ESA program who would otherwise not have attended public school; however, this is indeterminable. Local school systems
may experience reduced costs due to reduced enrollment. Because per-pupil allocations vary by district, the ESA award will
not equal the amount saved through reduced MFP funding; this will result in costs or savings depending upon the student’s
resident school district.
EXPENDITURE EXPLANATION CONTINUED ON PAGE TWO
REVENUE EXPLANATION
There may be a decrease in MFP allocations to local school districts to the extent that the proposed legislation causes
students to attend nonpublic schools in lieu of public schools; however, the extent of such losses is indeterminable. The ESA
shall be closed and the funds in the account shall be returned to the state general fund if the student is determined to be no
longer eligible, if an account has been inactive for two consecutive years, or if a parent fails to comply with the provisions of
proposed law or state board rules pertaining to the program.
Subject to Louisiana Department of Revenue (LDR) interpretation, ESA funds may or may not be taxable as income based
upon the Internal Revenue Service’s (IRS) scholarship provisions. In addition, expenditures made with ESA funds may be
deductible under the school expense deductions provided for in R.S. 47:297.10 and R.S. 47:297.11, potentially resulting in a
reduction in state tax revenues.
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} x 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Evan Brasseaux
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Interim Deputy Fiscal Officer
 LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 33 HLS 22RS 164
Bill Text Version: REENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: April 12, 2022 3:41 PM Author: DEVILLIER
Dept./Agy.: Education
Subject: Education Savings Account Program Analyst: Garrett Ordner
CONTINUED EXPLANATION from page one: Page 2 of 2
EXPENDITURE EXPLANATION CONTINUED FROM PAGE ONE
Participants will receive funding equal to the state’s per-pupil allocation as provided in the Minimum Foundation Program
(MFP) formula, considering all student characteristics. According to the LDE, the proposed 2022-23 MFP average state per
pupil allocation is $5,436. Eligible students must be eligible to enroll in Kindergarten or have been enrolled in a Louisiana
public school during the previous school year and meet one of three criteria: (1) the student has a parent or guardian in
active duty military service; (2) the student’s parent submitted an inter-district or intra-district transfer request during the
most recent transfer request period and was denied, or (3) the student is residing with a prospective or permanent
placement through foster care.
The LDE reports it will require $223,954 to create one (1) Education Program Consultant 4 position ($82,441 salary and
$37,098 related benefits) and one (1) Budget Analyst 4 or Budget Manager position ($72,010 salary and $32,405 related
benefits). The Education Program Consultant will be responsible for the implementation of the program, policy and guidance
development, partner/vendor management, and public outreach. The Budget Analyst 4 will manage the fiscal portion of the
program and, in collaboration with other Education Finance staff and/or the external vendor, ensure that the program has
appropriate fiduciary accountability. The LDE anticipates that FY 23 will be a planning year in which the department will
research the viability of contracting with an external vendor to carry out a portion of the program administration and conduct
an RFP to identify potential vendors.
The LDE estimates that in addition to funding for the needed positions and ESA awards, approximately 5% of funds made
available to the program will be needed to cover the cost of the vendor to administer the program, as well as administrative
costs that include equipment, systems, and other potential operating costs.
For illustrative purposes, if 2,000 public school students participate in the ESA program and awards equal $5,436, deposits
into ESAs will increase by $10.9 M. The legislature would need to appropriate this $10.9 M, plus an additional 5%
($545,000) for vendor and administrative costs.
The state will experience either costs or savings depending on the resident school district of the participants. For example,
the projected 2022-23 state MFP per-pupil allocation to the St. Helena Parish School District is $8,295; a participating
student from this district would receive an award of $5,436, resulting in a net savings to the state of $2,859. However, the
projected state MFP per-pupil allocation to the St. Charles Parish School District is $2,873; a participating student from this
district would also receive an award of $5,436, resulting in a net cost to the state of $2,563.
Local school systems may experience reduced instructional costs due to a decrease in enrollment; however, this is
indeterminable.
There will be increased state costs to the extent a student participates in the ESA program who would otherwise not have
attended public school; the number of such students is indeterminable. For illustrative purposes, there are an estimated
1,030 children 5 years of age whose parents are active-duty military members in Louisiana. According to the Military Child
Education Coalition’s Military Kids Now 2020 Survey, 18% of military children are homeschooled or attend private school. If
18% of the estimated 1,030 military children choose to participate in the ESA program, those 185 students would produce
an estimated state cost of $1 M (185 students x $5,436) plus an additional 5% ($50,000) for vendor and administrative
costs.
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} x 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Evan Brasseaux
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Interim Deputy Fiscal Officer


Statutes affected:
HB33 Engrossed: 17:236(A)
HB33 Reengrossed: 17:236(A)