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

SPONSOR Balderas

DATE TYPED 03/16/05 HB 633/aHAFC

SHORT TITLE Cimarron Online School Pilot Program

SB

ANALYST Chabot

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to SB 190, SB 485

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Education Department (PED)

SUMMARY

Synopsis of HAFC amendment

The House Appropriation and Finance Committee amendment to House Bill 633 deletes the ap-

propriation. Senate Bill 190 has a $236 thousand appropriation contingent upon passage of

House Bill 633.

Synopsis of Original Bill

House Bill 633 appropriates $236.3 thousand from the general fund to PED for the Cimarron

Municipal School District to establish and operate an online school.

Significant Issues

The Cimarron Online School pilot project is to provide school district approved curriculum and

developed course work online for grades kindergarten through twelve for home-schooled and

nontraditional students. Non-traditional students include school-age parents, working students,

students under expulsion or suspension or those with a medical condition preventing attendance

House Bill 633 -- Page 2

at regular schools.

Teachers will have established class times and students will be subject to the state-mandated ac-

countability tests. The Cimarron Municipal School District shall establish reporting and evalua-

tion requirements for students in the pilot program.

PED states the “pilot project is designed to assist districts in meeting the growing and changing

needs of home-schooled and nontraditional students in the 21

st

Century. The project will enrich

student credit opportunities by providing courses that might not be available in their local

schools.”

PED identifies several considerations before implementing the project:

1.

High quality, online teaching is time and labor intensive resulting in higher costs than en-

visioned (University of Illinois 1999 study).

2.

Research indicates professional development is critical for successful e-learner environ-

ments. Learners have to be actively engaged and courses adjusted as needed for individ-

ual student needs (Gagnon and Collay, 2001).

3.

Capacity building for the e-learner is crucial and is important when putting content online

(Owston, 1997).

4.

Students are required to be supported by highly qualified teachers and two part-time

teachers may not be sufficient.

5.

Rural internet access is limited, may not have the capacity to deliver interactive robust

courseware and may require a partnership with an internet provider to establish the

needed capacity.

PERFORMANCE IMPLICATIONS

PED core performance measures will be impacted in the following areas:

1.

Implementation of Education Reform Initiatives including Drop Out Prevention Program,

Information Technology Reform Support, Information Technology Infrastructure Up-

grade and Network, Professional Development and Rural Education, and Rural School

Advanced Placement Acceleration Program.

2.

Parent Involvement.

FISCAL IMPLICATIONS

The appropriation of $236.3 contained in this bill is a recurring expense to the general fund. 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 revenues and expenditures

and any increase in recurring funding must be offset by reductions in other areas of the recom-

mendation. The Legislature must consider all priorities and funding requirements to find reve-

nue to support this legislation.

PED estimates expenses to oversee the pilot project at almost $5 thousand and is unsure whether

the appropriation is sufficient to purchase test materials and scoring for the students.

House Bill 633 -- Page 3

ADMINISTRATIVE IMPLICATIONS

PED will need to administer the appropriation and provide technical assistance to the Cimarron

Municipal Schools.

OTHER SUBSTANTIVE ISSUES

PED points out the bill does not have language indicating how the district will report these stu-

dents in the Accountability Data System and whether enrollment will generate units under the

public school funding formula.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

A pilot project will not be demonstrated.

POSSIBLE QUESTIONS

1.

How many students have expressed interest in participating in the pilot project.

2.

How will student’s performance be assessed.

3.

What courses are envisioned.

4.

Will all students be allowed to participate or will it be limited to nontraditional students.

5.

What can be learned from other districts using online courses.

GAC/yr/njw:lg