Fiscal Note - SB 0190 - Increases Minimum Salaries For Teachers
L.R. NO. 0847-01
BILL NO. SB 190
SUBJECT: Education, Elementary and Secondary
TYPE: Original
DATE: January 28, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
General Revenue ($7,159,121) ($7,159,121) ($7,159,121)
Total Estimated
Net Effect on All
State Funds ($7,159,121) ($7,159,121) ($7,159,121)
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None $0 $0 $0
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Elementary and Secondary Education (DESE)
assume the proposal could require the state to reimburse school districts for
the cost resulting from the proposal under the Hancock Amendment. DESE
officials state the State Board Schools would result in no cost to DESE
because the salary schedule already exceeds the proposed minimums. They
assume at the local level the legislation would require districts with
teacher salary schedules below the proposed minimums to raise their schedules
and pay rates. For FY 98 they assume 2,400 teachers earn less than $20,000,
and 770 teachers with master's degrees and ten or more years experience earn
less than $25,000.
2,400 x ($20,000-$18,000)= $4,800,000
770 x ($25,000-$24,000)= 770,000
$5,570,000
DESE assumes for FY 99 and on a similar annual cost would be incurred as the
minimum salary increases.
The Oversight Division assumes the state would reimburse the school districts
for the costs under Article X, Section 21 of the Missouri Constitution. The
Oversight Division has also calculated costs of increased fringe benefits at
28.53%.
Officials from the State Tax Commission assume the proposal would result in
no fiscal impact to the commission. They did not have data to aid in the
cost calculation.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
GENERAL REVENUE FUND
Cost-Department of Elementary and Secondary
Education
Minimum Salary Reimbursement
to School Districts ($5,570,000) ($5,570,000) ($5,570,000)
Reimbursement for Fringe
Benefits (1,589,121) (1,589,121) (1,589,121)
Total Cost-DESE ($7,159,121) ($7,159,121) ($7,159,121)
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
Income-School Districts
Minimum Salary Reimbursement
from DESE $7,159,121 $7,159,121 $7,159,121
Cost-School Districts
Minimum Salary ($5,570,000) ($5,570,000) (5,570,000)
Fringe Benefits (1,589,121) (1,589,121) (1,589,121)
Total Cost-School Districts ($7,159,121) ($7,159,121) ($7,159,121)
ESTIMATED NET EFFECT ON
LOCAL GOVERNMENT $0 $0 $0
FISCAL IMPACT - Small Business
No fiscal impact to small businesses would be expected as a result of this
proposal.
DESCRIPTION
The proposal would raise the minimum salary for teachers in the school year
1997-98 from $18,000 to $20,000, and for teachers with master's degrees the
minimum salary would increase from $24,000 to $25,000. Under the proposal,
beginning with the 1998-99 school year , minimum teachers' salaries would
change on the same percentage basis as the prorated guaranteed tax base (GTB)
and prorated for payment purposes changes when the product of the proration
factor times the payment GTB for the second preceding year is divided by the
product of the proration factor times the payment GTB for the third preceding
year.
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
NOT RESPONDING: St. Louis Public Schools
This Fiscal Note is not an official copy and should not be quoted or cited.