LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 38 HLS 21RS 224
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 14, 2021 8:26 AM Author: EDMONDS
Dept./Agy.: Education
Subject: School Board Fiscal Transparency Analyst: Garrett Ordner
FISCAL CONTROLS EN INCREASE GF EX See Note Page 1 of 2
Provides for school board information to be accessible on the Louisiana Fiscal Transparency Website known as Louisiana
Checkbook
Proposed legislation requires public school governing authorities with annual enrollment of more than 2,500 students to
provide budget, debt, employment, payroll, and tax data for publishing on the state’s fiscal transparency website LA
Checkbook. Requires LA Checkbook to include such data in a format that is searchable by public school governing authority.
Provides that such data is subject to audit by internal auditors and the legislative auditor. Requires the Board of Elementary
and Secondary Education to develop policies requiring all other public school governing authorities to post their annual
budget, annual independent audit results, and quarterly reports on their websites. Proposed legislation becomes effective on
January 1, 2022.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $309,760 $134,420 $32,120 $32,120 $32,120 $540,540
Agy. Self-Gen. INCREASE INCREASE INCREASE INCREASE INCREASE
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds INCREASE INCREASE INCREASE INCREASE INCREASE
Annual Total
REVENUES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. INCREASE INCREASE INCREASE INCREASE INCREASE
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
EXPENDITURE EXPLANATION
There will be an increase in state and local expenditures to incorporate public school system data into the LA Checkbook
website; costs will be greatest within the first two years of implementation. The Division of Administration (DOA), Office of
Technology Services (OTS) reports that the provisions of proposed law will require a minimum of one year of development,
with implementation occurring in year two, pending the ability of the school districts to provide the required data. The LA
Legislative Auditor (LLA) will incur additional SGR expenditures related to compliance reviews. Local school systems will
experience a significant increase due to one-time programming costs, as well as ongoing expenses.
OTS reports that implementation will require approximately $309,760 in FY 22, $134,420 in FY 23, and $32,120 for
recurring expenditures in subsequent fiscal years (assumed as SGF in this fiscal note). This will fund the workload associated
with 3 T.O. positions in FY 22 (including two IT Management Consultant 2 positions, and one IT Program Analyst 2), two
T.O. positions in FY 23 (one IT Management Consultant 2 position, and one IT Program Analyst 2), and maintenance of IT
equipment. The table below provides a breakdown of projected object category expenditures by fiscal year.
FY 22 FY 23 FY 24 FY 25 FY 26
Operating Expenses $4,560 $15,120 $15,120 $15,120 $15,120
Other Charges $305,200 $119,300 $17,000 $17,000 $17,000
Total $309,760 $134,420 $32,120 $32,120 $32,120
The proposed legislation will also result in increased costs for local public school systems for upfront system modifications
and programming costs, as well as ongoing support and maintenance costs. The Department of Education (LDE) estimates
potential one-time costs of $15,000 to $20,000 for programming, as well as $500 in annual maintenance costs. At $15,000
per district, initial implementation costs would require $765,000, and annual maintenance costs would be $25,500 for the 50
out of 69 city/parish school systems and one virtual charter school system with more than 2,500 students in the February
2021 enrollment count.
SEE EXPENDITURE EXPLANATION CONTINUED ON PAGE TWO
REVENUE EXPLANATION
The LA Legislative Auditor (LLA) will realize an indeterminable, potentially significant increase in SGR associated with
compliance reviews for the 50 out of 69 city/parish school systems and one virtual charter school system with more than
2,500 students in the February 2021 enrollment count. LLA reports that it bills an hourly rate of $110, but cannot quantify
the scope, complexity, or frequency of the required compliance reviews. The total impact on revenues is therefore
indeterminable and can vary from year to year.
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}
13.5.2 >= $500,000 Annual Tax or Fee Alan M. Boxberger
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Staff Director
 LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 38 HLS 21RS 224
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 14, 2021 8:26 AM Author: EDMONDS
Dept./Agy.: Education
Subject: School Board Fiscal Transparency Analyst: Garrett Ordner
CONTINUED EXPLANATION from page one: Page 2 of 2
EXPENDITURE EXPLANATION CONTINUED FROM PAGE ONE
Actual costs will vary by district, and will depend on the format in which data is provided to the state for publishing on LA
Checkbook and the school systems’ contracts with financial software vendors. School districts will also be responsible for
paying costs to the LA Legislative Auditor for periodic compliance reviews.
The LLA will realize an indeterminable, potentially significant SGR expenditure increase due to the workload required by the
proposed law. Because the proposed law does not provide for a minimum number of reviews or specify the degree of detail
to be included, the LLA cannot provide an estimated expenditure impact. The LLA would bill for such reviews at its hourly
rate of $110, but the average number of hours per review cannot be determined due to the varying size and complexity of
local school systems, as well as the varying quality and completeness of their records, systems, and controls.
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}
13.5.2 >= $500,000 Annual Tax or Fee Alan M. Boxberger
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Staff Director


Statutes affected:
HB38 Original: 39:1(2), 39:3(A)(1), 39:4(A), 39:5(A)(2), 39:6(A)(2), 39:7(A)(2), 39:9(A), 39:13(A)
HB38 Engrossed: 39:1(2), 39:3(A)(1), 39:4(A), 39:5(A)(2), 39:6(A)(2), 39:7(A)(2), 39:9(A), 39:13(A)
HB38 Reengrossed: 39:1(2), 39:3(A)(1), 39:4(A), 39:5(A)(2), 39:6(A)(2), 39:7(A)(2), 39:9(A), 39:13(A)
HB38 Enrolled: 39:1(2), 39:3(A)(1), 39:4(A), 39:5(A)(2), 39:6(A)(2), 39:7(A)(2), 39:9(A), 39:13(A)