SB 0506 - Fiscal Note

Fiscal Note - SB 0506 - Extends Sunset For Univ. of MO Engineering Grants

L.R. NO.  1957-02
BILL NO.  Truly Agreed To And Finally Passed SB 506
SUBJECT:  Higher Education:  capital appropriations
TYPE:     Original
DATE:     May 7, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

General Revenue                 $0              ($0 to            ($0 to
                                           $1,267,200)       $1,267,200)

Total Estimated
Net Effect on All                               ($0 to            ($0 to
State Funds                     $0         $1,267,200)       $1,267,200)



                   ESTIMATED NET EFFECT ON FEDERAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

None                            $0                  $0                $0

Total Estimated
Net Effect on All
Federal Funds                   $0                  $0                $0


                    ESTIMATED NET EFFECT ON LOCAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

Local Government                $0                  $0                $0


                              FISCAL ANALYSIS

ASSUMPTION

Officials from the University of Missouri initially stated the proposal would
result in no fiscal impact for the university.  However, based on a
subsequent conversation with them, they stated that for fiscal year 1994 the
engineering grant request was $1,224,000, and the appropriation was zero.
For fiscal year 1995 the request was $1,196,400 and the appropriation was
$700,000.  For fiscal years 1996 and 1997 the request and appropriation were
for $2,534,400, for two years.  The grant requests are based on the number of
bachelor degrees in engineering awarded in previous years for the Columbia
and Rolla campuses.

Officials from the Coordinating Board for Higher Education state that for FY
96 the budget recommendation for engineering grants was $902,000 for the
Columbia campus and $1,490,000 for the Rolla campus ($2,392,000 total).  They
stated that although the legislation is not required in order for the
university to obtain engineering grants, the legislation increases the
chances for the university to get the engineering grants.

The Oversight Division has ranged the fiscal impact from zero to $1,267,200
(50% of $2,534,400) for each fiscal year.  The range begins at zero and goes
to the maximum amount appropriated to the university for one year because the
legislation is not required for the university to receive the grant, but the
legislation increases the chances for the university to receive the grant.
The range is only presented for FY 98 and FY 99 because the current
expiration date is June 30, 1997.

FISCAL IMPACT - State Government      FY 1997      FY 1998      FY 1999
                                     (10 Mo.)
GENERAL REVENUE FUND

Cost-University of Missouri
  Engineering Grants                                   ($0          ($0
                                                        to           to
                                           $0  $1,267,200)  $1,267,200)

FISCAL IMPACT - Local Government      FY 1997      FY 1998      FY 1999
                                     (10 Mo.)

                                            0            0            0


DESCRIPTION

The proposal would extend the sunset for University of Missouri engineering
grants from June 30, 1997, to June 30, 2007.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.


SOURCES OF INFORMATION

University of Missouri
Coordinating Board for Higher Education