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04/19/2024 12:32 PM
Pennsylvania State Senate
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=S&SPick=20130&cosponId=13197
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Senate of Pennsylvania
Session of 2013 - 2014 Regular Session

MEMORANDUM

Posted: August 22, 2013 01:45 PM
From: Senator Andrew E. Dinniman
To: All Senate members
Subject: Regulation Fiscal Note Requirement
 
By August 30, 2013, I will introduce legislation that will require comprehensive financial reporting by the State Board of Education during the regulation process.

A comprehensive accounting of the financial burdens that a specific regulation could cause for the Commonwealth, its schools, the community and the taxpayers needs to be disclosed during the regulation review process. Vague statements of cost without real numbers don’t provide the information needed for the General Assembly to make judgment or comment on a proposed regulation proceeding through the Independent Regulatory Review process.

The Independent Regulatory Review Act provides an open and transparent process to be followed by an agency implementing regulations to carry out the laws enacted by the General Assembly. This process requires a projection of the costs that will be incurred by those affected by the implementation of the proposed regulation. It has come to my attention that this requirement to openly state a cost projection for Education related regulations doesn’t require much more than a vague narrative statement without any real valuations of the taxpayer money that has been spent preparing for the process or that will be spent after the regulation is implemented.

The ongoing proposed regulation to implement Common Core standards and the Keystone Exams is a good example of the State Board of Education’s failure to provide a cost analysis that has the openness and transparency that is needed to adequately determine whether the benefits of the regulation are fiscally feasible.
Cost related to the preparation by the Department and the Board since 2007, including but not limited to, details for contracts paid for test preparation, for website creation and roundtable discussions held were not included or provided in a specific accounting in the filing.

The State Board’s IRRC filings were lacking information pertaining to the cost that were or would be incurred for implementing the regulation. The IRRC filing did not contain any type of break down for the cost related to bring schools up to the level of the new standards. For example, the filing failed to include the cost for the additional remedial instruction, the cost for instructing teachers and the cost of textbooks. I have received cost analysis for the implementation of the regulation from both organizations and school districts. These cost range from a conservative $300 million to $750 million. These are neither minimal cost nor are they a possible savings as was noted in the narrative statement provided to IRRC by the Board.

This lack of accounting and information is unacceptable. The General Assembly has a right to have certain information available during the review process of a regulation that affects education. That is why I am introducing legislation to amend the Public School Code to require that the four Chairs of the Education Committees receive a comprehensive, detailed financial break down of estimated cost for regulations related to the Department of Education at key times in the IRRC review process which the Chairs will then provide to their caucus for additional input and review. Further, my bill will also include specific language added to the statute that authorizes the implementation of the Keystone Exams to require similar financial reporting during the review process of any regulation that would implement or expand these Exams, including the two additional Keystone Exams that the Department of Education is currently in the process of developing under the Common Core standards.

In the legislature, both sides of the aisle consistently talk about ending unfunded mandates on local school districts which often results in increased property taxes for our constituents. The vast majority of requirements on the school districts which aren’t funded do not come from legislative action and bills that the General Assembly pass, but more so from the Department of Education through the regulation process and regulatory mandates and controls. If we are serious about limiting unfunded mandates, then complete and accurate fiscal disclosure with detailed notes is vital for the legislature when it reviews regulations that are drafted for approval by the State Board of Education for the Department during the IRRC process.

If you have any questions regarding this legislation, please contact Lisa M. Felix at lfelix@pasenate.com or at 705-5849.



Introduced as SB1113