NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to CS HB2/HAFC

SOURCES OF INFORMATION

State Department of Public Education (SDE)

LFC files

SUMMARY

Synopsis of Bill

House Bill 116 appropriates $500.0 to SDE for the purpose of providing statewide services to interested school districts that assist pregnant teens and teen parents to complete high school while acquiring necessary parenting, social and economic skills to become responsible and independent adult parents.

Significant Issues

According to SDE, the Graduation, Reality And Dual-Role Skills (GRADS) program offers a highly effective recovery and retention program targeted toward teenage parents who are high school dropouts or at-risk of dropping out. The program provides academic intervention and employability sill training to enable teen parents to become responsible and independent adult parents. The GRADS program is operational in 34 sites statewide with on-site child care. Programs that offer on-site child care are significant to prevention of drop-outs and recruitment of previous drop-outs.

According to SDE, the primary focus of the GRADS program is to reduce teenage pregnancy and to provide education and support for teen parents to enable them to graduate from high school, have healthy babies, improve parenting skills, and to develop employability skills that will enable them to advance to post-secondary education and gainful employment.

FISCAL IMPLICATIONS

House Bill 116 appropriates $500.0 in general fund to the State Department of Public Education for expenditure in fiscal year 2001. Any unexpended or unencumbered balance remaining at the end of the fiscal year 2001 shall revert to the general fund.

In FY99, the GRADS program was funded in the amount of $200.0 and in FY00 was funded in the amount of $500.0.

SDE indicates that under the current GRADS funding cycle, eligible school districts receive funding over a three year period to implement the program. Districts will be required to sustain the program beyond the initial funding period.

ADMINISTRATIVE IMPLICATIONS

The State Department Of Education indicates that this legislation would provide for the continuation of an on-going project currently administered by the department and administrative costs will be absorbed through the agency operating budget.

RELATIONSHIP

Included in HAFC substitute for House Bill 2 et. al., is an appropriation in the amount of $625.0 to SDE for the GRADS program. The source of funding is from the Temporary Assistance to Needy Families Block Grant.

OTHER SUBSTANTIVE ISSUES

SDE can provide statistical data on the GRADS program upon request.

CTF/njw