OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

HB-6622

AN ACT CONCERNING DISTRICT PARTNERSHIPS.


OFA Fiscal Note

State Impact: None

Municipal Impact:

Municipalities

Effect

FY 14 $

FY 15 $

Various Alliance School Districts

Potential Cost

Indeterminate

Indeterminate

Various Alliance School Districts

Potential Revenue Shift

170,000-4.8 million

170,000-4.8 million

Explanation

The bill results in a potential cost and a potential revenue loss to various Alliance Districts associated with establishing a mutual agreement with state and local charter schools, within the district, to allow the charter school's students to be used as part of the district's overall scores. However, this revenue loss would be captured by a new municipality qualifying for Alliance District funding, thus resulting in a revenue shift. Currently, there is a pilot program for the Bridgeport, Hartford, and New Haven districts to allow for this to occur. There are currently thirty Alliance Districts, including:

Ansonia, Bloomfield, Bridgeport, Bristol, Danbury, Derby, East Hartford, East Haven, East Windsor, Hamden, Hartford, Killingly, Manchester, Meriden, Middletown, Naugatuck, New Britain, New Haven, New London, Norwalk, Norwich, Putnam, Stamford, Vernon, Waterbury, West Haven, Winchester, Windham, Windsor, and Windsor Locks.

The potential cost to various Alliance Districts is associated with the mutual agreement between the district and the charter schools. For example, Hartford currently has an agreement with Achievement First, which allows the city to use the test scores of the charter students, and in turn, the city pays for transportation services for charter students. This cost to Hartford is minimal. It is anticipated that an Alliance District would not enter into an agreement unless the costs to the district were minimal. For several districts there could be no additional costs associated with the mutual agreement.

If an Alliance District is able to use the test scores of the charter schools within their district, this could increase their district performance index (DPI), which could result in a district no longer qualifying for extra Alliance District funding through the Education Cost Sharing grant, and a new municipality qualifying for Alliance District funds. In FY 13 the Alliance District grants ranged from $170,000 to $4.8 million.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to the mutual agreements and the impact of the charter school student's test scores on the DPI.