LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 321 SLS 24RS 470
Bill Text Version: ENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: April 3, 2024 9:12 AM Author: EDMONDS
Dept./Agy.: EDUCATION
Subject: Charter School Facilities Fund Analyst: Julie Silva
SCHOOLS EG SEE FISC NOTE SD EX See Note Page 1 of 2
Creates the Charter School Facilities Fund within the Louisiana Department of Education. (gov sig)
Proposed legislation creates the Charter School Facilities Fund within the Louisiana Department of Education, for the purpose
of assisting new and existing Type 1, 2, and 3 charter schools seeking to open or expand charter school facilities in the
state. Monies in the fund are subject to appropriation by the legislature to the State Board of Elementary and Secondary
Education (BESE) for allocation to a non-profit fund manager to administer as low interest loans for the purposes provided or
for other educational purposes as determined by the legislature. Loans are not to exceed $100,000 and must be repaid per
the terms of the loan agreement, which is limited to three years. Each loan must be a short-term loan and must reflect the
affordability needs of each charter school facility project applying for funding as determined through the analysis of the fund
manager. Authorizes the State Superintendent of Education as a signatory on any instrument relating to the disbursement of
funds. Effective upon governor's signature.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. SEE BELOW $0 $0 $0 $0 $0
Ded./Other SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
EXPENDITURE EXPLANATION
There is no anticipated significant material effect on governmental expenditures as a result of this measure.
Proposed legislation creates the Charter School Facilities Fund, but does not provide an initial or recurring source of deposits.
Monies in the fund are subject to appropriation by the legislature to the Board of Elementary and Secondary Education
(BESE). BESE may then allocate the funds to a non-profit fund manager to administer as low interest loans. Loans must be
short-term and must reflect the affordability needs of each charter school facility project applying for funds as determined by
the fund manager. Loan repayments are automatically deposited back into the fund from an amount reduced out of the last
state payment of the year to a charter school. Annual repayment amounts are equal to one-third of the total three year loan.
The Louisiana Department of Education (LDOE) states that hiring a non-profit fund manager to oversee the loan program by
BESE would likely increase operating costs; however, proposed legislation permits BESE to adopt policies concerning
administrative fees that may charged to the fund. It is assumed these charges would include any costs associated with the
fund manager.
BESE is also directed to adopt rules specifying that board approval of any Type 2 charter school proposal that includes a
request for loan funding within its budget which also complies with the provisions of proposed legislation will constitute
approval of that loan. No additional loan application will be required. A Type 1 or Type 3 charter school approved by its local
school board is only required to submit its approved charter proposal and a detailed budget identifying how any loan funds
will be expended and how the request complies with the provisions of proposed legislation.
Note: BESE currently receives an annual appropriation of approximately $218,000 from the legislature for the Louisiana
Charter School Start-Up Loan Fund. New charter schools are eligible for up to $100,000 loans to be repaid in three years
with one-third of the balance due at the end of each year. The repayment is automatically deducted from the Minimum
Foundation Program funding allocated to the school.
CONTINUED ON PAGE TWO
REVENUE EXPLANATION
Proposed legislation creates the Charter School Facilities Fund but does not provide an initial source of revenue for the fund.
Monies deposited into the fund will be contingent upon transfers, donations, or appropriations into the fund by the
legislature. Prior to issuing loans, the fund will require an initial deposit of monies. To the extent interest is charged on the
loans, there may be an increase in revenues deposited to the fund as loans are repaid.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
13.5.2 >= $500,000 Annual Tax or Fee Patrice Thomas
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Deputy Fiscal Officer
 LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 321 SLS 24RS 470
Bill Text Version: ENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: April 3, 2024 9:12 AM Author: EDMONDS
Dept./Agy.: EDUCATION
Subject: Charter School Facilities Fund Analyst: Julie Silva
CONTINUED EXPLANATION from page one: Page 2 of 2
Creating a new statutory dedication within the state treasury will result in a marginal workload increase for the Department
of Treasury, which can generally be absorbed within existing resources. However, to the extent other legislative instruments
create new statutory dedications, there may be material additional costs associated with the aggregate effort to administer
these funds. The Treasury performs fund accounting, financial reporting, banking and custodial functions for 443 special
funds. When unable to absorb additional workload within existing resources, the treasury anticipates it will be required to
add one T.O. position at a total personnel services cost of approximately $95,000, plus approximately $2,450 for a one-time
purchase of office equipment. These expenditures are assumed to be SGR in this fiscal note.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
13.5.2 >= $500,000 Annual Tax or Fee Patrice Thomas
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Deputy Fiscal Officer