LD 1319 LR 1001(02)
An Act To Ensure Federal Title I Funding Is Directed to Classroom Learning
Fiscal Note for Bill as Amended by Committee Amendment " "
Committee: Education and Cultural Affairs
Fiscal Note Required: Yes
Fiscal Note
Current biennium cost increase - General Fund
Current biennium cost increase - Local School Administrative Units
Fiscal Detail and Notes
This legislation eliminates the requirement that federal Title I funds received by a school administrative unit (SAU) be deducted from that SAU's operating allocation before the Essential Programs and Services (EPS) per-pupil rates are calculated.
Ever since the implementation of the (EPS) model, the student-to-staff ratio's for teachers and education technicians used to calculate the EPS per-pupil rates have included teachers and education technicians that are paid with federal Title I funds.  This was done, in part, because at the time the EPS model was developed, a break-out of teachers and education technicians that were paid with federal Title I was not available.  The EPS per-pupil rates are used to calculate the basic and weighted cost allocations that contribute to each school administrative unit's total operating allocation.  In order to negate the impact of the federally funded teachers and education technicians being included in EPS per-pupil rates, and avoid providing state and local funds for costs already being paid by federal funds, the amount of Title I funding that the SAU's receive is deducted from the operating allocation before the EPS per pupil rates are determined.
According to the Department of Education, repealing the adjustment for federal Title 1 funds as part of an SAU's operating allocation without making the necessary change to student-to-staff ratios will increase the total cost of K-12 public education by approximately $42,851,231 in fiscal year 2017-18.  The impact to the State and local SAU's will depend on any additional General Fund dollars provided to support this legislation.  If the full amount is appropriated, there will be no fiscal impact to local SAU's; if no General Fund dollars are appropriated, the full responsibility of this legislation will fall to local school units.  If only a portion of the total cost is appropriated, local SAU's will need to raise the remaining balance.