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2017 Session

Budget Amendments - HB1500 (Committee Approved)

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Parental Choice Education Savings Accounts

Item 137 #3h

Item 137 #3h

 First Year - FY2017 Second Year - FY2018
Education
Department of Education, Central Office Operations FY2017 $0 FY2018 $380,000 GF
FY2017 0.00 FY2018 3.00 FTE

Language
Page 117, line 16, strike "$20,538,547" and insert "$20,918,547".

Page 118, after line 26, insert:

"I.1. Out of this appropriation, $380,000 the second year from the general fund is provided to the Department of Education for the first year estimated  start-up costs incurred while developing necessary policies, processes and procedures for the administration of Parental Choice Education Savings Account program as defined in House Bill 1605.  The Department is further directed to identify a portion of the state's share of the per pupil amount of Standards of Quality funding from a resident school division of an eligible kindergarten through grade twelve student for whose parent has applied and been approved for a Parental Choice Education Savings Account, as permitted and predicated on the passage of House Bill 1605. The Department will distribute such identified information to each appropriate school division.

2.a.) School divisions that have eligible students participating in the Parental Choice Education Saving Account program shall be responsible for making appropriate quarterly warrants to a financial institution that are based on the DOE identified state funds where such savings accounts have been established by the parents of the participating students and are maintained and managed.

b.) In addition, these school divisions shall be responsible for receiving the expense reports and invoices from parents of the eligible students participating in the Parental Choice Education Saving Account program to determine, on the basis of policies and procedures established by the Department, the appropriateness of such expenses, as defined in House Bill 1605, along with submitted receipts prior to making a subsequent quarterly warrant into the proper savings account or renewing a written agreement for another year."

Explanation

(This amendment provides $380,000 the second year from the general fund to the Department of Education for the first year estimated start-up costs for 2 professional and 1 clerical full-time positions in DOE that would be needed to administer this program. In addition to the personnel, a portion of the funds, $50,000, would be for one-time startup costs for technology and consultants to write program policies/procedures/contract for the savings accounts. In total, the first year cost would be $380,000 and the ongoing cost would be $330,000. Under the proposed legislation's provision where 10% of the state SOQ per pupil funding is remitted by the divisions to DOE for administrative costs for qualified students whose family income is greater than 300% of the poverty guidelines (which equals $72,900 for a family of four), about 780 of these students would have to participate in the program for DOE to obtain the needed funds to cover the $330,000 in on-going staffing costs, more students to cover the $380,000 first year costs. Without this minimum level of student participation, there would not be sufficient operating funds transferred from the resident school divisions to administer the DOE portion of the Parental Choice Education Savings account. It is not known at this time how much it will cost school divisions to handle their required responsibilities as directed by the legislation.)

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