LD 1860 LR 835(01)
An Act to Create the Educational Opportunity Account Program
Preliminary Fiscal Impact Statement for Original Bill
Sponsor: Rep. Libby of Auburn
Committee: Education and Cultural Affairs
Fiscal Note Required: Yes
Preliminary Fiscal Impact Statement
FY 2023-24 FY 2024-25 Projections  FY 2025-26 Projections  FY 2026-27
Net Cost (Savings)
General Fund $325,524 $357,191 $360,731 $364,398
General Fund $325,524 $357,191 $360,731 $364,398
Fiscal Detail and Notes
This bill establishes the Educational Opportunity Account Program within the Department of Education to create accounts for participating students that may be used by a parent or legal guardian of a participating student to pay for certain education expenses, including expenses paid to education service providers.  The bill requires the department to deposit an amount equal to the average amount spent by the State on a public school student per year into a participating student's account.  Using statewide average tuition rates in fiscal year 2022-23, the amount to be deposited per participating student is $10,878 for elementary school students and $12,589 for secondary school students.  The cost to the General Fund, which is expected to be substantial, is not reflected in this fiscal note and will depend on the number of students that participate in the program each year and the average amount spent by the State on each student in a school year.
The Department of Education will require ongoing General Fund appropriations totaling $325,524 in fiscal year 2023-24 and $357,191 in fiscal year 2024-25 for the costs associated with administering the program.  Of that amount, $75,524 in fiscal year 2023-24 and $107,191 in fiscal year 2024-25 will be required for one Management Analyst II position and related All Other costs to administer the program.  Additionally, $250,000 per year beginning in fiscal year 2023-24 will be required for the cost of contracting with a vendor to develop and implement a system for allowing payments to and withdrawals from an educational opportunity account.