This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0852 - Placement of Funds For Capital Exp. & Salaries by Schools
L.R. NO. 3025-10
BILL NO. Perfected SS #3 For SB 852
SUBJECT: Schools: Capital Expenses and Salaries
TYPE: Original
DATE: April 29, 1996
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
General Revenue (UNKNOWN) (UNKNOWN) (UNKNOWN)
MO Higher
Education Student
Voucher $0 $0 $0
Total Estimated
Net Effect on All
State Funds *(UNKNOWN) *(UNKNOWN) *(UNKNOWN)
*Exceeding $100,000 annually.
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 UNKNOWN UNKNOWN UNKNOWN
FISCAL ANALYSIS
ASSUMPTION
The Coordinating Board For Higher Education officials assume the bill would
have no fiscal impact on them since DESE's state aid payments would be
diverted to finance the scholarship fund, and DESE would administer the
scholarship program. The bill could have an unknown fiscal impact on public
higher education institutions that would be required to provided to DESE
information about enrollment, tuition paid, attendance, and high school
enrollment records.
Officials from Southwest Missouri State University assume the proposal would
have no fiscal impact on them.
Officials from the St. Louis Community College assume they would be required
to satisfy reporting requirements under the proposed scholarship program.
They assume they would try to incorporate and absorb those requirements under
their existing financial aid and student accounting processes, but it could
be possible that they would experience additional costs as a result. The
Oversight Division assumes the college could absorb any additional
administrative requirements.
Officials from Jefferson College assume they have no way of changing rates of
tuition. If the 80% scholarship provision would be less than their tuition
rates, then the fiscal impact could be material in that they have
approximately 300 students in dual enrollment classes. The reporting
requirements would present no problem for the college. The Oversight
Division assumes any differential between the tuition and scholarship amount
would be paid by the student.
Officials from Central Missouri State University assume the only apparent
cost impact on higher education would be administrative expense incurred in
processing, estimated at $2,500. The Oversight Division assumes the
university could absorb the administrative costs.
Officials from the State Tax Commission assume the proposal would have no
fiscal impact on them.
The Department of Elementary and Secondary Education (DESE) officials assume
the minimum salary provision would extend this program for certain districts
for three years. The following assumptions were made:
No district would receive more than it received in 1995-96 plus the
amount needed for the masters degreed teachers requirement in 1996-97.
Only Schell City R-I would be eligible. The Walker R-IV district is
included because it is voting in June to annex to Schell City R-I.
There are only two teachers in each district qualifying for the $24,000
in 1996-97.
The following state cost is estimated by DESE:
Schell City R-I = $46,828
Masters degree + 10 years exp. - 2 teachers = $12,000
+ 1995-96 amount 34,828
$46,828
Walker R-IV = $101,099
Masters degree + 10 years exp. - 2 teachers = $12,000
+ 1995-96 amount 89,099
$101,099
Total cost to the state = $147,927
This cost would be incurred in each year FY97, FY98, and FY99. A
supplemental appropriation would be needed for FY97.
DESE officials assume the scholarship program could have a zero fiscal impact
to the state. The scholarships could increase the state cost if a student
would have graduated early anyway and would take advantage of the
scholarship. DESE states they do not maintain information on students who
graduate in less than four years. DESE states the average formula payment
per eligible pupil is $1,365 for FY 96. They assume that 80% of this amount
would go to the student ($1,092) and 20% would go to the school district
($273). For FY 97, they estimate that the average formula payment per
eligible pupil would be $1,488. DESE assumes schools would benefit by
receiving formula aid for students attending higher education institutions.
FISCAL IMPACT - State Government FY 1997 FY 1998 FY 1999
GENERAL REVENUE FUND
Income-Colleges and Universities
Tuition from scholarships (80% of formula
payment per eligible pupil) UNKNOWN UNKNOWN UNKNOWN
Cost-Department of Elementary
and Secondary Education
Minimum Salary ($147,927) ($147,927) ($147,927)
100% of formula payment per
eligible pupil (80% to MO Higher
Education Student Voucher Fund and
20% to school districts) (UNKNOWN) (UNKNOWN) (UNKNOWN)
Total Cost-DESE (UNKNOWN) (UNKNOWN) (UNKNOWN)
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND (UNKNOWN) (UNKNOWN) (UNKNOWN)
MISSOURI HIGHER EDUCATION
STUDENT VOUCHER FUND
Income-Department of Elementary and
Secondary Education
80% of formula payment per eligible pupil UNKNOWN UNKNOWN UNKNOWN
Cost-Department of Elementary and
Secondary Education
Scholarships (80% of formula payment
per eligible pupil) (UNKNOWN) (UNKNOWN) (UNKNOWN)
ESTIMATED NET EFFECT ON
MISSOURI STUDENT VOUCHER FUND $0 $0 $0
FISCAL IMPACT - Local Government FY 1997 FY 1998 FY 1999
Income-School Districts
Minimum Salary $147,927 $147,927 $147,927
20% of formula payment
per eligible pupil UNKNOWN UNKNOWN UNKNOWN
Total Income-School Districts UNKNOWN UNKNOWN UNKNOWN
Cost-School Districts
Minimum Salary ($147,927) ($147,927) ($147,927)
Bonuses and compensation (10% of formula
payment per eligible pupil) (UNKNOWN) (UNKNOWN) (UNKNOWN)
Total Cost-School Districts (UNKNOWN) (UNKNOWN) (UNKNOWN)
ESTIMATED NET EFFECT ON LOCAL
GOVERNMENT UNKNOWN UNKNOWN UNKNOWN
DESCRIPTION
The proposal would define the budgetary efficiency ratio for school districts
as the quotient of the sum of the district's current operating costs for all
non-administrative functions plus the cost of supplies for operation of plant
divided by the sum of the district's current operating costs plus all tuition
revenue received from other districts and placed in the teachers' or
incidental funds.
Beginning with the 1996-97 school year, the General Assembly would make an
appropriation to the Excellence in Education Fund for fulfilling minimum
salary requirements for teachers for those districts meeting certain
criteria. A qualifying district would be eligible to receive funds only
during the first three years following the district's qualifying for the
funds.
The proposal would set criteria for setting the tax rate in the capital
projects fund. The proposal would allow a school district to transfer from
the capital projects fund to the incidental fund the interest earned for
which placement is not otherwise provided by law.
The proposal would require a school district to expend as a percentage of
current operating costs, for tuition, teacher retirement and compensation of
certificated staff at least 78%, or a percentage for the 1994-95 and 1995-96
school years no less than 3% less than the base school year certificated
salary percentage and for the 1996-97 school year, no less than 2% less than
the base school year certificated salary percentage. The base year
percentage would be the two year average percentage of the 1991-92 and
1992-93 school years. The proposal would set compliance criteria beginning
with the 1997-98 school year. DESE could exempt a school district from the
requirements upon receipt of a request by a school district. Any school
district not in compliance would compensate the staff the year following by
an additional amount equal to one hundred ten percent of the amount necessary
to bring the district in compliance.
Each school district would annually report by September first to DESE, its
instructional budgetary efficiency ratio for the preceding school year. DESE
would calculate statewide averages and report the statewide ratio and ratios
for all school districts to the Governor and General Assembly.
The proposal would allow school districts to invest excess funds in the
capital projects fund.
The proposal would not allow any person to serve more than three consecutive
school years as an administrator in a school district unless the person has
taught at least one regular term class during the three preceding years.
The proposal would allow any pupil less than eighteen years of age who
graduates from a public school in less than four years at the high school
level to be eligible for a scholarship to attend academic classes at an
approved public or private institution. Such attendance would be included in
average daily attendance of the district the pupil resided in at graduation
during such succeeding school year. DESE would deduct from its state aid
payment to the district for the succeeding year eighty percent of the per
pupil amount resulting from the pupil's attendance at a public or private
institution. The amount would be deposited in the Missouri Higher Education
Student Voucher Fund for providing scholarships. One-half of the remaining
funds paid to the district based on attendance of the pupil would be used for
bonus compensation and benefits to certificated staff based on merit, and the
remaining one-half could be used for any school purposes.
The proposal contains an emergency clause.
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
Department of Elementary and Secondary Education
State Tax Commission
Coordinating Board For Higher Education
University of Missouri
Southwest Missouri State University
Central Missouri State University
St. Louis Community College
Jefferson College
NOT RESPONDING: Truman State University