Fiscal Note

HB0169 - Virtual Charter Schools

State Impact:
Enactment of this bill will appropriate $100,000 in one-time Uniform School Fund revenue in FY 2007 to the State Board of Education to provide start-up funds for virtual charter schools. Enactment of the bill authorizes the State Board of Education to approve a Virtual Charter School, enrolling up to 2,000 students. This fiscal note assumes that each of these 2,000 students is currently funded through the Minimum School Program based on their actual or anticipated enrollment in a public school in the fall of 2007. However, some students receiving educational services through private sources (private school or home school) may opt to enroll in the Virtual Charter School. Since these students are not included in current or anticipated enrollments driving the Minimum School Program budget, the state may incur additional costs. If 10 percent of the total enrollment comes from outside the public system, the increased state cost to the Minimum School Program is estimated to be $808,800. Categorical programs within the Minimum School Program generate an additional cost to the state. The Local Replacement Funding Program provides $1,184 per student enrolled in a charter school. The added cost to the Local Replacement Funding Program is estimated at $2,368,000 and would require an ongoing appropriation from the Uniform School Fund to the Minimum School Program beginning in FY 2008. Legislation currently before the Legislature proposes to increase the per student Local Replacement Formula amount and provide additional state revenues to support school level administration costs in the charter schools on a per student basis. Approval of these measures by the Legislature may impact this estimate.

Individual, Business and/or Local Impact:
Enactment of this bill likely will not result in direct, measurable costs and/or benefits for individuals, businesses, or local governments.