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F I S C A L I M P A C T R E P O R T

SPONSOR Foley

DATE TYPED 03/05/05 HB 540/a HEC

SHORT TITLE Educational Programs

SB

ANALYST Chabot

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$9,000.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to SB 4

Relates to Appropriation in the General Appropriation Act

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

$5,000.0

Recurring Schools in Need of

Improvement

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Education Department (PED)

SUMMARY

Synopsis of HEC amendment

The House Education Committee amendment to House Bill 540 adds the requirement for PED to

collaborate with fine arts educators for materials and equipment.

House Bill 540/aHEC -- Page 2

Synopsis of Original Bill

House Bill 540 appropriates $9 million from the general fund: $5 million is to the Schools In

Need of Improvement Fund for after-school programs, including tutoring students having Eng-

lish as a second language and those in schools ranked as needing improvement; and $4 million to

PED for music education programs.

Significant Issues

PED reports there are 132 schools designated as schools in need of improvement under No Child

Left Behind Act of 2001 criteria. Each of these is required to implement additional requirements

such as supplemental services such as after-school programs and tutorial services. Federal funds

are available for Title 1 designated schools; however, state funds must be used for other schools.

NCLB gives arts equal recognition with mathematics, science, languages, civics, government,

economics, history and geography. PED assess this bill supports systemic education reform by

strengthening arts education as an integral part of curriculum. Research supports overall student

improvement when arts education in dance, music, visual arts and multi-arts. One study called

Creating Original Opera for elementary students documented improved performance by as a re-

sult of collaborative learning. By working together, students were engaged in open-ended prob-

lem solving and oral presentation activities.

PERFORMANCE IMPLICATIONS

After school programs and English classes may lead to improved student outcomes and allow

more schools to meet adequate yearly progress under the federal No Child Left Behind act.

FISCAL IMPLICATIONS

The appropriation of $5 million contained in this bill is a non-recurring expense to the general

fund and any unexpended or unencumbered balance remaining at the end of any fiscal year shall

not revert. The appropriation of $4 million is a recurring expense to the general fund and any

unexpended or unencumbered balance remaining at the end of fiscal year 2006 shall revert to the

general fund.

The LFC FY06 appropriation recommendation is balanced between recurring revenues and ex-

penditures and any increase in recurring funding must be offset by reductions in other areas of

the recommendation. The Legislature must consider all priorities and funding requirements to

find revenue to support this legislation.

ADMINISTRATIVE IMPLICATIONS

PED will have to develop rules and procedures for administering the music education program

funds.

TECHNICAL ISSUES

PED suggests specifics should be provided for the music education programs such as grade lev-

els to be included, should the program be aligned with standards, and benchmarks for music pro-

House Bill 540/aHEC -- Page 3

grams, and whether hiring of music teachers is included.

POSSIBLE QUESTIONS

1.

Will the appropriation to the schools in need of improvement fund be restricted to the

services listed in the bill or can PED use it for additional services.

2.

How will the appropriation for music be integrated with the elementary fine arts program

funded through the funding formula.

GAC/sb:lg