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.

The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.

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 Room 416 of the State Capitol Building.

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

SPONSOR:	Boitano		DATE TYPED:	03/04/99		HB
SHORT TITLE:		Charter Schools				SB	692
					ANALYST:		Woodlee/Fernandez

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY99	FY2000	FY99	FY2000	Recurring or Non-Rec	Fund Affected
	$ 1,000.0		$ 6,259.7	Recurring	General Fund
	$ 180.0			Recurring	General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to Senate Bill 192/aSEC

SOURCES OF INFORMATION

State Department of Public Education (SDE)

LFC Files

SUMMARY

Synopsis of Bill

Senate Bill 692 appropriates $1,180.0 to the State Department of Education for the operations of charter schools. One million dollars ($1,000.0) is for the Charter School Stimulus Fund and $180.0 is for transportation expenses incurred by charter schools.

FISCAL IMPLICATIONS

Senate Bill 192/aSEC creates the "Charter School Stimulus Fund." Senate Bill 692 appropriates $1,000.0 to the fund for start-up or conversion charter schools to cover initial costs associated with renovating or remodeling existing buildings and structures. The funds may be expended in fiscal year 2000.

Senate Bill 692 also appropriates $180.0 from the general fund to SDE for transportation expenses incurred by charter schools. Any unexpended or unencumbered balance remaining at the end of fiscal year 2000 will revert to the general fund. SDE indicates that the $180.0 appropriation would be sufficient for four 71-passenger buses available for charter schools.

SDE estimates that approximately four percent or 1,613 students currently enrolled in private and home schools may transfer to a charter school. Using the 1997-98 per student program cost of $3,881 multiplied by 1,613 students, the estimated additional cost to the general fund would be $6,259.7.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

Relates to Senate Bill 192/aSEC.

MW:CTF/gm