Bill Summary – FastDemocracy

State of Alaska
                                                            Fiscal Note
                                                                                              Bill Version:                  CSSSSB 6(EDC)
 2020 Legislative Session
                                                                                              Fiscal Note Number:            5
                                                                                              (S) Publish Date:              2/19/2020
 Identifier:        SB006SSCS(EDC)-EED-PEF-2-17-20                             Department:        Fund Capitalization
 Title:             PRE-K/ELEM ED PROGRAMS/FUNDING;                            Appropriation: No Further Appropriation Required
                    READING                                                    Allocation:        Public Education Fund
 Sponsor:           BEGICH                                                     OMB Component Number:                2804
 Requester: Senate Finance
 Expenditures/Revenues
 Note: Amounts do not include inflation unless otherwise noted below.                                                              (Thousands of Dollars)
                                                 Included in
                                    FY2021       Governor's
                                Appropriation      FY2021                                            Out-Year Cost Estimates
                                  Requested       Request
 OPERATING EXPENDITURES               FY 2021        FY 2021       FY 2022                      FY 2023            FY 2024         FY 2025        FY 2026
 Personal Services
 Travel
 Services
 Commodities
 Capital Outlay
 Grants & Benefits                                                                                                 1,724.1          4,305.5        6,887.0
 Miscellaneous
 Total Operating                            0.0           0.0          0.0                            0.0          1,724.1          4,305.5        6,887.0
 Fund Source (Operating Only)
 1004 Gen Fund (UGF)                                                                                               1,724.1          4,305.5        6,887.0
 Total                                           0.0              0.0                 0.0             0.0          1,724.1          4,305.5        6,887.0
 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 (FY2020) cost:                                   0.0                (separate supplemental appropriation required)
 Estimated CAPITAL (FY2021) 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 reflect the new committee substitute - no changes required to the fiscal note.
 Prepared By:             Heidi Teshner, Director                                                                   Phone:       (907)465-2875
 Division:                Finance and Support Services                                                              Date:        02/17/2020 02:00 PM
 Approved By:             Lacey Sanders, Administrative Services Director                                           Date:        02/17/20
 Agency:                  Office of Management and Budget
Printed 2/19/2020                                                       Page 1 of 2                                                       Control Code: OQFME
                                                                                                       CSSSSB 6(EDC) - Fiscal Note 5
                                                    FISCAL NOTE ANALYSIS
STATE OF ALASKA                                                                  BILL NO. CSSSSB 6(EDC)
2020 LEGISLATIVE SESSION
Analysis
   This bill creates three new programs: an early education program, a school improvement literacy program, and a
   comprehensive reading intervention program. This fiscal note addresses the early education program.
   The early education program, created under AS 14.03.135, 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 being funded by another state or federal program.
   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 projected FY2021 State Aid Entitlement of $1,208,042,082 and
   dividing it by the total ADM projected at 128,923.91 to arrive at $9,370. The average per student cost was then divided in
   half to arrive at $4,685, 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 FY2024. Since those prekindergarten student counts cannot be determined, the following calculation of
   students are based on the cohort used for projecting the grant.
          FY2024 = 368 students x $4,685 = $1,724,080
          FY2025 = 919 students x $4,685 = $4,305,515
          FY2026 = 1,470 students x $4,685 = $6,886,950
          FY2027 = 2,205 students x $4,685 = $10,330,425
          FY2028 = 2,940 students x $4,685 = $13,773,900
          FY2029 = 3,675 students x $4,685 = $17,217,375
   The effective date of this bill is July 1, 2020 (FY2021).
(Revised 10/22/19 OMB/LFD)                                                                                         Page 2 of 2
SB006SSCS(EDC)-EED-PEF-2-17-20                                 Page 2 of 2                                             Control Code: OQFME
Statutes affected: 
SB0006A, AM SB 6, introduced 01/16/2019: 14.03.060, 14.07.020, U.S.C, 14.38.010, 14.30.180, 14.30.350, 14.03.080, 14.07.165, 14.03.123, 14.17.500, 14.17.905, 14.17.990, 14.03.125, 14.33.120, 14.07.030, 14.11.014, 47.17.290
SB0006B, AM SSSB 6, introduced 01/21/2020: 14.03.060, 14.07.020, U.S.C, 14.38.010, 14.30.180, 14.30.350, 14.03.072, 14.30.765, 14.03.080, 14.03.120, 14.07.165, 14.03.123, 14.17.500, 14.17.905, 14.17.990, 14.03.125, 14.33.120, 14.07.030, 14.30.770, 14.07.050, 14.11.014, 14.30.760, 14.30.278, 14.30.775, 47.17.290, 14.03.135
SB0006C, AM CSSSSB 6(EDC), introduced 02/17/2020: 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, 14.17.905, 14.17.990, 14.03.125, 14.33.120, 14.07.030, 14.30.770, 14.07.050, 14.11.014, 14.20.015, 14.20.020, 14.30.278, 47.17.290, 14.03.410