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.

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(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

State Department of Education (SDE)

SUMMARY

Synopsis of Bill

House Bill 75 amends Section 22-8-23 of the Public School Finance Act to allow alternative schools to generate size adjustment program units.

Significant Issues

House Bill 75 would allow SDE approved alternative schools with a MEM of less than 400 to generate Elementary-Junior High size units and Senior High size units.

Alternative programs within a traditional school would not be eligible for size adjustment units.

According to SDE, MEM is the school membership including early childhood education full-time- equivalent membership, but excluding membership in class C and D programs and excluding full-time-equivalent membership in 3-year and 4 year old developmentally disabled programs.

FISCAL IMPLICATIONS

House Bill 75 appropriates $6,900.0 from the general fund and would be recurring. The appropriation is based on the 2000-2001, 40^th day membership and unit value.

As of January 29, 2001, the State Superintendent of Public Instruction increased the unit value from $2,632.32 to $2,647.56. The appropriation included in the bill would have to be adjusted to reflect the new unit value.

ADMINISTRATIVE IMPLICATIONS

None to SDE.

OTHER SUBSTANTIVE ISSUES

According to SDE, if House Bill 75 is not enacted alternative schools will continue to be excluded from generating size adjustment units.

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