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)

Duplicates/Conflicts with/Companion to/Relates to House Bill 3 and Senate Bill 3.

SOURCES OF INFORMATION

State Department of Public Education (SDE)

LFC Files

SUMMARY

Synopsis of Bill

Senate Bill 78 appropriates $270.0 to State Department of Public Education to contract for the completion of an independent study and to establish a database that measures housing costs, cost-of-living factors and other factors that affect the recruitment and retention of qualified teachers in all 89 school districts.

Significant Issues

Funds were included in the 1998 General Appropriation Act for SDE to contract for an independent study to establish a database that measures housing costs and other factors affecting the cost of living, recruitment and retention in the state's 89 school districts.

Of the $270.0 appropriation contained in the bill, $70.0 would allow for the continuation of the Cost of Living Adjustment (COLA) study.

Two separate contractors are conducting surveys related to the recruitment and retention of teachers and collecting data on the sales price of homes and other relevant information. Both contractors anticipate having final reports for the COLA task force by Spring 1999. In May the COLA task force will develop recommendations and endorse possible legislation for consideration by the 2000 Legislature.

FISCAL IMPLICATIONS

Senate Bill 78 appropriates $270.0 to SDE for expenditure in fiscal years 1999 and 2000. Any unexpended or unencumbered balance remaining at the end of fiscal year 2000 shall revert to the general fund.

Of the total appropriation, $60.0 is sufficient to complete building a housing cost database and $10.0 would complete work on issues related to recruitment and retention of qualified teachers in all school districts. An additional $200.0 would fund the development of an integrated client server software system at SDE.

The Legislative Finance Committee recommended $70.0 to continue the COLA study. The committee did not recommend $200.0 for the development of an integrated client server software system prior to the final report from the COLA task force and prior to legislative action which would require an integrated client server software system for SDE.

ADMINISTRATIVE IMPLICATIONS

SDE will continue to provide staff support to the COLA task force.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

This bill relates to HB3 and SB3. Included in both Education Appropriation Acts is $70.0 to continue the work of the COLA task force.

CTF/sb