Fiscal Note - SB 0208 - Military and Educational Scholarships and Funds, and Other Military Affairs
L.R. NO. 1004-06
BILL NO. HCS for SS for SB 208
SUBJECT: Education: National Guard
TYPE: Original
DATE: May 5, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
General Revenue ($2,167,990) ($42,386,617) ($61,261,165)
Veterans Home
Fund ($384,179) ($384,179) ($384,179)
Veterans'
Commission Capital
Improvement Trust
Fund ($333,919) ($27,000,000) ($27,000,000)
Missouri National
Guard Trust Fund $0 $809,346 ($413,017)
Education Fund
For Early
Childhood
Programs Fund $0 $25,000,000 $25,000,000
Total Estimated
Net Effect on All
State Funds ($2,886,088) ($43,961,450) ($64,058,361)
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
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
Missouri National Guard Enlistment Pay/Scholarship Requirements:
Sections 41.435 & 173.239
Officials of the Department of Elementary and Secondary Education and the
Coordinating Board of Higher Education assume that this proposal would have
no fiscal impact to their agencies.
Officials of the Missouri National Guard (MNG) estimated all costs which
relate to the Reenlistment Program and for actual payments anticipated to be
made to Guard members reenlisting in the Missouri National Guard. MNG
officials would not anticipate the need for additional staffing, operating
supplies, or rental space as a result of this proposal.
MNG officials used pay scale for E-4 with over four years of service. They
assumed 50% of first-timers would take advantage of the Reenlistment Bonus
Program. MNG staff further assumed that first-timers reenlisting would
reenlist for the maximum three year reenlistment. If this program is to be
taxed, MNG officials assume the soldier's bonus payment would be net after
taxes and applicable fringes. A 3% increase in base pay was projected for
FY99 and FY2000 for federal military personnel. MNG officials estimate the
total fiscal impact to be $157,663 in FY98, $401,258 in FY99 and $617,754 in
FY2000.
Veterans Homes/Missouri National Guardsmen: Section 42.105
Officials of the Missouri Veterans Commission (MVC) stated that by expanding
the definition of veterans in Chapter 42, RSMo, to include honorably
discharged National Guards persons would allow Missouri National Guards
persons to secure admittance to state veterans homes.
MVC officials stated that under federal regulations pertaining to the
operation of state veterans homes, states veterans homes having been built
with federal grant monies under the State Veterans Home Construction Grant
Program, may admit up to 25% persons not defined as veterans under the
federal guidelines. Those persons who are residents of state veterans homes,
and are not considered veterans under federal guidelines, would not be
eligible for per diem payments to the state, aid and attendance, or pension.
This loss in federal funds would have to be borne by the state, or the
residents.
MVC officials, using information from the Missouri National Guard, estimated
that there are currently 20,000 honorably discharged National Guardsmen in
the State of Missouri. Of that number, they estimate that 25% of the
guardsmen are already eligible for admission to Missouri Veterans Homes due
to prior service in the United States Armed Forces. Thus the 585,000
Missourians currently eligible for admission to Missouri Veterans Homes would
be increased by 15,000 to a total of 600,000.
Based upon the above figures, and assuming that eligible guardsmen would
utilize Missouri Veterans Homes at the same rate as Veterans of the U. S.
Armed Forces, MVC officials estate that at any given time their census would
include 2.5% guardsmen. Applying that 2.5% to their current 708 beds, MVC
officials assume there would be an average of 17.7 guardsmen in the five
homes currently operating.
The Veterans Administration (VA) pays MVC a per diem of $39.74 per day for
each eligible veteran in their homes, which equals $1,208.75/month. In
addition to the $1,208.75/month paid by the VA, each resident is required to
contribute up to $1170 per month, based upon their ability to pay. MVC
officials estimate that the average resident has an income of $570 per month,
which qualifies them for aid and attendance through the VA of approximately
$600 per month. Guardsmen would not qualify for the $1,208.75 per diem
payment nor the average of $600 per month aide and attendance allowance.
This $1,808.75 loss times the number of months in a year times an average of
17.7 guardsmen equals $384,178.50 loss per year in FY's 98, 99 and 2000.
MVC officials currently have state funds committed for a 200-bed home in
Cameron and half of the state funds for a 200-bed home in Warrensburg. This
years Capital Improvements Budget includes a request for the other half of
Warrensburg, as well as a new 200-bed home in Mount Vernon, which would
increase the number of beds there by 100. There is also a request for an
additional 100 beds in St. Louis. A 50 bed addition is scheduled to be
completed in St. James this year.
When the above mentioned construction projects are completed, MVC will have a
total of 1,350 beds. Applying the $1808.75/month loss of revenue to 2.5% of
those beds produces a long-term annual loss of revenue of $716,265 annually
once construction in MVC's long-range plan is completed.
Military Honors/Office of the Adjutant General: Sections 41.214, 41.958, &
42.135
Due to the density of the number of veterans living in the state of Missouri
and assuming that as knowledge of this Veterans memorial funeral service
grows, officials of the Office of the Adjutant General assumed that requests
for the military services would increase substantially in future years.
Adjutant General officials assume the Missouri National Guard would provide
as many funeral details as possible with 5 full-time funeral details located
in 5 geographic areas of the state. These details would be augmented with
part-time personnel working as needed in a state of active duty with pay
status; minimum pay would be at a rate of Sergeant E-5 with 10 years of
service estimated at $55 per day. Depending on the work load, teams would be
sized as necessary to perform the mission and provide proper military honors.
An administrative section would be authorized to support the program manned
with state employees. Also, when the work load exceeds Missouri National
Guard/Office of the Adjutant General capability, the National Guard would
contract with appropriate veterans organizations to provide firing details.
The maximum pay to a Veterans organization was projected to be $350 per
service regardless of the number of personnel supporting. The Veterans
organizations would be responsible for transportation, uniforms, weapons,
ammunition, and compensation, if any, for the participants.
Due to the limited funding currently available in the Veterans Trust Fund,
Adjutant General officials anticipate that FY98 costs would be minimal to
provide administration and start-up personnel necessary for program
development and rule making. Formal Missouri National Guard performance of
military honors would not be initiated on a full-scale basis until sometime
after July 1, 1998 (FY99) when detail personnel could be trained and
equipment obtained. Adjutant General officials assume the Missouri National
Guard detail would support 2 funerals per day, 365 days per year with each 20
main district detail being divided into two teams: 10 teams x 2 honor
details per day x 365 days = 7,300 funerals with overflow being supported by
Veterans organizations.
Using information from the Missouri Funeral Director Projection, Adjutant
General staff assume 2/3 of the 13,000 authorized Veterans funerals, or 8,580
services would be requested. To perform 8,580 memorial services, Adjutant
General officials assume 1,280 services would be contracted from Veterans
organizations -- 1,280 x $350 = $448,000 for contractual services.
Most one-time start-up costs would be incurred in FY99. A small portion of
these items that are necessary for program development would be purchased in
FY98. Costs for rental space for six offices have been projected with the
assumption that the required space would not be available with current
facilities.
Beginning in FY99, Adjutant General officials assume the Missouri National
Guard Trust Fund would receive approximately $15 - $20 million annually. The
funeral details would be funded from these monies with the remaining funds to
be retained and used according to provisions of this proposal.
Adjutant General officials assume that they would request the following FTE
to implement this proposal: one (1) Program Manager; one (1) Deputy Program
Manager; one (1) Accountant/Fiscal Manager; eight (8) Clerk II's; one (1)
Military Honors Trainer; five (5) Detail Supervisors; 100 Military Honor Team
Members (18 riflemen/riflewomen and 2 buglers per detail for each of the 5
regional details); and 52.3 Part-time Military and Clerical. The part-time
Military and Clerical staff would be used to fill in for full-time personnel
man days lost to weekends 10,400 (M/D), holidays 1,200 (M/D), vacation 1,500
(M/D), sick leave 500 (M/D) = a 13,600 (M/D) short fall over a 7 day week
full-time projected workload. Adjutant General officials assume military
funeral honor details would occur 7 days per week. These part-time positions
would be necessary to avoid over-time payments.
In response to a previous version of this proposal, officials of the Office
of the Adjutant General stated that the figures used for their estimated
costs which would result from this proposal are based on information provided
by the Missouri Funeral Directors Association regarding the number of veteran
deaths projected by year in Missouri. It was estimated that in FY98 there
could be 12,420 veteran deaths in Missouri. Also, the funeral honors detail
personnel in the previous version of the proposal was 6 (5 riflemen/
riflewomen and 1 bugler). Adjutant General officials noted that this was not
in compliance with military funeral personnel requirements outlined in Field
Manual 22-5, Drill and Ceremonies. Also, the amount to be reimbursed to the
veterans' organizations was at the bill's maximum rate of 6 people at $30 per
person or $180 per contracted detail.
In a previous version of the proposal, Adjutant General officials assume that
they would request the following FTE to implement the proposal: one (1)
Program Manager; one (1) Deputy Program Manager; one (1) Accountant; one (1)
Clerk II; one (1) Military Honors Trainer; one (1) Detail Supervisor; and
twelve (12) Military Honor Team Members (10 riflemen/riflewomen and 2 buglers
provide military funeral details assuming 10 details per week x 52 weeks).
Officials of the Department of Revenue (DOR) assume that this proposal would
require modifications to the individual and corporate income tax systems,
forms, instructions and worksheets. DOR officials assume these modifications
would be handled by existing staff/resources.
Officials of the State Treasurer's office assume that this proposal would
have no fiscal impact to their agency.
Officials of the Missouri Veterans Commission (MVC) assume that this proposal
would have no direct fiscal impact from this proposal. MVC officials stated
that transfers from the Gaming Commission Fund lag approximately one year
behind. Although the FY96 transfer from Gaming Commission Fund has not been
made yet, MVC officials estimated the FY96 transfer would be $23,000,000.
MVC officials estimate transfers from Gaming Commission Fund to the Veterans'
Commission Capital Improvement Trust Fund for FY98 and subsequent years would
be $30,000,000.
For purposes of this fiscal note, Oversight assumes that initially, not all
of the public eligible for the proposed service would request the ceremony.
As awareness of the service increased, Oversight assumes the need for
additional staff to perform the ceremony would also increase. Therefore, in
FY98 Oversight assumed the Adjutant General would need one (1) Program
Manager, one (1) Military Honors Trainer, and one Military Honors Team
comprised of five (5) riflemen/riflewomen and one (1) bugler. For FY99,
Oversight assumes the requests for the proposed services would increase and
there would be the need for Military Honors Teams from veterans'
organizations. Therefore, for FY99 in addition to the staff requested in
FY98, Oversight assumes there would be expenses to reimburse those veterans'
organizations as required by this proposal. In FY2000, Oversight assumes
that the number of requests for the ceremonies would continue to increase and
there would be a need for an additional Military Honors Team (6 FTE), one (1)
Detail Supervisor, one (1) Deputy Program Manager, one (1) Accountant/Data
Manager, and one (1) Clerk II with associated expense and equipment. In
FY2000, Oversight also assumes the need for Military Honors Team from
veterans' organizations and subsequent expense reimbursements from the
Adjutant General would continue.
Monies transferred from the Gaming Commission Fund to the Veterans'
Commission Capital Improvement Trust Fund lag behind one fiscal year.
Because monies would not be transferred to the Missouri National Guard Trust
Fund before FY99 and the proposal allows for the Veterans' Commission to
transfer moneys from the Veterans' Commission Capital Improvement Trust Fund
to support activities described in section 41.958, RSMo, Oversight assumes
moneys to pay administrative costs to implement this proposal of $333,919 in
FY98 would be transferred from the Veterans' Commission Capital Improvement
Trust Fund to the Missouri National Guard Trust Fund. Administrative costs
in FY99 to implement this proposal would be $1,190,654. With the $2 million
transferred to the Missouri National Guard Trust Fund in FY99 there would be
a surplus in that fund. Oversight therefore assumes the surplus in the
Missouri National Guard Trust Fund from FY99 plus the $2 million transfer to
the fund would be sufficient to cover the Adjutant General's $2,413,017 costs
associated with honor details in FY2000.
Current law states that beginning July 1, 2000, remaining unencumbered funds
would be transferred from the Gaming Commission Fund to General Revenue Fund.
Because this proposal would distribute $3 million of those funds to the
Veterans' Commission Capital Improvement Trust Fund, $2 million of those
funds to the Missouri National Guard Trust Fund, and the remaining
unencumbered funds to the Education Fund for Early Childhood Programs Fund
Oversight assumes that this proposal would result in a long-term loss to
General Revenue Fund which would occur outside the fiscal note period.
Challenge Scholarship Program: Section 173.740
Assumptions from Southwest Missouri State University, Moberly Area Community
College, Jefferson College, Northwest Missouri State University, Missouri
Southern State College, Three Rivers Community College, Central Missouri
State University, East Central College, Harris-Stowe State College, Truman
State College, Missouri Western State College, Linn State Technical College
and Department of Elementary and Secondary Education were based on responses
to a previous version of the proposal.
Officials from Southwest Missouri State University assume the proposal would
result in costs related to programmer time of approximately $1,600 annually,
postage of approximately $3,500 annually, and forms of approximately $200
annually, for a total cost of approximately $5,300 annually.
Officials from Moberly Area Community College assume the proposal would
result in costs of approximately $1,500 annually for personnel and
operations.
Officials from Jefferson College assume the proposal would result in annual
costs of approximately $5,000 annually for supplies, computer reports, new
programs and clerical personnel (.2 FTE).
Officials from Northwest Missouri State University assume the proposal would
result in approximately $6,000 in annual costs for computer programming,
supplies and mailing.
Missouri Southern State College assume they could accomplish the provisions
of the proposal by using current reports and systems, resulting in no fiscal
impact.
Officials from Three Rivers Community College assume the proposal would
result in a positive impact on enrollment as students who might otherwise
attend a 4-year university decide to attend the college. From an
administrative standpoint they anticipate an increase in paperwork to verify
enrollment for all students who are Missouri residents.
Officials from Central Missouri State University, East Central College,
Harris-Stowe State College, Truman State College, Missouri Western State
College and Linn State Technical College assume the proposal would result in
no fiscal impact.
The Oversight Division assumes the colleges and universities could accomplish
the provisions of the proposal with existing resources.
Officials from the Department of Elementary and Secondary Education assume
the proposal should not affect the Outstanding Schools Trust Fund as long as
the federal tax deduction is not affected.
Officials from the Office of Administration-Budget and Planning assume the
proposal would result in General Revenue Fund losses of $21.1 million in FY
1999, $45.5 million in FY 2000 and $75.6 million in FY 2001, assuming
scholarships would be taken on tax returns subsequent to the year they were
earned. Based on the CBHE response, Oversight assumes these amounts are for
calendar years.
Officials from the Department of Corrections assume the proposal would have
minimal fiscal impact on them.
Officials from the Coordinating Board For Higher Education (CBHE) state that
based on conversations with several institutions of higher education in
Missouri, an assumption was made about the average number of hours in which
students are enrolled. For two-year schools the average is assumed to be
nine hours per semester, for four-year schools and proprietary schools the
average is assumed to be fifteen hours per semester. This calculation also
assumes a 75% freshman to sophomore retention rate for all three relevant
years. This calculation also assumes a 10% growth rate in enrollment over
1995 levels for each of the three relevant years. Statistical information
for this calculation was obtained from the Missouri Higher Education
1995-1996 Statistical Summary, and the Directory and Statistical Summary:
Proprietary Sector of Missouri Postsecondary Education, 1994-95.
CBHE officials assume the Senior Associate ($50,000) and Research Associate
($40,000) would develop an education campaign for the Challenge Scholarship
Program, respond to citizen requests for information, coordinate the
implementation of the program on the various campuses, and implement new
monitoring and data collection activities for the program. An administrative
assistant FTE ($20,277) would support the new and existing personnel in grant
and scholarship administration.
The Oversight Division assumes that the proposal requires the CBHE to provide
a list of eligible institutions to DOR, receive a report of scholarships from
DOR and prescribe rules and regulations. Oversight assumes CBHE could
provide the list to DOR and prescribe rules and regulations with existing
resources. Oversight assumes the administrative assistant included by CBHE
could assist existing staff and maintain the data of scholarships received by
DOR. Therefore, the Oversight Division has only included the administrative
assistant in the fiscal impact for CBHE.
CBHE officials assume that on a calendar year basis, the scholarship amounts
earned would be $21,146,345 in 1998, $45,531,769 in 1999 and $75,619,950 in
2000.
Officials from the Department of Revenue (DOR) assume the legislation would
require modifications to the income tax system, tax forms and increased data
entry requirements. The system modifications and tax form revisions would be
completed by existing staff and resources. The Information Systems Division
would need two Data Entry Operator IIs ($16,488 annual salary) for four
months of each tax processing to key enter the additional income tax data
needed for this reimbursement. The Division of Taxation would be responsible
for receiving the challenge scholarship reimbursement vouchers from an
eligible higher institution of learning. These vouchers would then be
processed on a remittance processor and down loaded to a personal computer
system. The information from the vouchers could then be matched against the
income tax system to verify the amount of reimbursement claimed on a
taxpayer's income tax return. The Division of Taxation would need one Clerk
II ($15,372 annual salary) for six months of each processing tax year to
batch, run and data correct challenge scholarship reimbursement vouchers.
One Tax Processing Technician II ($16,488 annual salary) would be needed for
each tax processing year to handle error corrections, telephone inquiries and
correspondence. One End-User Computing (EUC) Programmer ($26,544 annual
salary) would be needed for six months to create, test and implement the new
programs needed for the remittance processor.
Because the additional personnel would be hired for the tax season only, DOR
officials assume no additional costs for expense and equipment would be
needed.
The Oversight Division estimates a loss to General Revenue of $1,982,628 for
FY 98 due to the possibility of reduced withholding and estimated income tax
payments for five months of calendar year 1998 (January through May, 1998),
since the proposal is effective for education credits earned after January 1,
1998. Oversight assumes 25% of eligible taxpayers would adjust their tax
payments in FY 98; however, this amount could be less, depending on
taxpayers' awareness of the new credit and their desire to adjust tax
withholdings or estimated tax payments. In FY 1999 and 2000 Oversight has
assumed taxpayers would use 100% of eligible scholarships in withholdings and
estimated tax payments.
The proposal would result in a decrease in Total State Revenues since income
tax collections are included in the calculation of Total State Revenue.
Education Fund for Early Childhood Programs Fund: Section 313.835
Officials of the Department of Elementary and Secondary Education (DESE)
stated that support for the Education Fund for Early Childhood Programs Fund
would be subject to appropriation. DESE staff indicated that based on
current discussions on this fund, the intent would be for new programs, not
to supplement existing programs. Therefore, no savings are assumed and the
cost would be unknown. Oversight assumes the proposal would result in an
estimated $25 million being transferred to the Education Fund for Early
Childhood Programs Fund "to support activities that prepare children to enter
school ready to learn."
Promulgating Rules: Section 1
Rules promulgated pursuant to the provisions of this proposal would expire on
August 28 of the year after the year in which the rule became effective
unless the General Assembly extended by statute the rule or set of rules
beyond that date to a date specified by the General Assembly. In an action
challenging any rule, the agency would be required to provide by a
preponderance of evidence that the rule or threatened application of the rule
is valid, is authorized by law, is not in conflict with any law and is not
arbitrary and capricious. The court would award reasonable fees and expenses
as defined in section 536.085 to any part who prevailed in such an action.
Oversight assumes that the agencies would write procedural and emergency
rules in conformity with provisions of the proposal so that court awards to
plaintiffs for reasonable expenses in bringing suits against rules could be
absorbed within current budgets.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
GENERAL REVENUE FUND
Missouri National Guard Enlistment Pay/Scholarship Requirements:
Sections 41.435 & 173.239
Cost-Missouri National Guard
Reenlistment bonuses ($157,663) ($401,258) ($617,754)
Challenge Scholarship Program: Section 173.740
Loss to General Revenue Fund
Challenge Scholarship Program ($1,982,628) ($41,929,601) ($60,575,860)
Cost-Coordinating Board For Higher Education
Personal Service (1 FTE) ($17,313) ($21,304) ($21,837)
Fringe Benefits (4,939) (6,078) (6,230)
Expense and Equipment (5,447) (309) (318)
Total Cost-CBHE ($27,699) ($27,691) ($28,385)
Cost-Department of Revenue
Personal Service (2.25 FTE) $0 ($21,837) ($30,472)
Fringe Benefits 0 (6,230) (8,694)
Total Cost-DOR $0 ($28,067) ($39,166)
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND ($2,167,990) ($42,386,617) ($61,261,165)
VETERANS HOME FUND
Veterans Homes/Missouri National Guardsmen: Section 42.105
Loss-Missouri Veterans Commission
Lost per diem/aide & attendance ($384,179) ($384,179) ($384,179)
VETERANS' COMMISSION CAPITAL
IMPROVEMENT TRUST FUND
Military Honors/Office of the Adjutant General: Sections 41.214, 41.958, &
42.135 Education Fund for Early Childhood Programs Fund: Section 313.835
Loss-Missouri Veterans Commission
Reduced Transfer from Gaming
Commission Fund 0 ($27,000,000) ($27,000,000)
Cost-Missouri Veterans Commission
Transfer to MNGTF ($333,919) 0 0
ESTIMATED NET EFFECT VETERANS'
COMMISSION CAPITAL IMPROVEMENT
TRUST FUND ($333,919) ($27,000,000) ($27,000,000)
MISSOURI NATIONAL GUARD TRUST FUND
Military Honors/Office of the Adjutant General: Sections 41.214, 41.958, &
42.135 Education Fund for Early Childhood Programs Fund: Section 313.835
Income-Office of the Adjutant General
Transfer from the Veterans's Commission
Capital Improvement Trust Fund $333,919 $ 0 $ 0
Transfer from Gaming Commission Fund 0 2,000,000 2,000,000
Total Income-Office of Adjutant General $333,919 $2,000,000 $2,000,000
Cost-Office of the Adjutant General (Adjutant General)
Personal Service (9 FTE, 9 FTE,
19 FTE) ($183,135) ($225,347) ($472,816)
Fringe Benefits (52,248) (64,291) (134,894)
Expense and Equipment (98,536) (901,016) (1,805,307)
Total Cost-Adjutant General ($333,919) ($1,190,654) ($2,413,017)
ESTIMATED NET EFFECT TO
MISSOURI NATIONAL GUARD
TRUST FUND $0 $809,346 ($413,017)
EDUCATION FUND FOR EARLY
CHILDHOOD PROGRAMS FUND
Education Fund for Early Childhood Programs Fund: Section 313.835
Income-Department of Elementary and
Secondary Education (DESE)
Transfer from Gaming Commission Fund $0 $25,000,000 $25,000,000
--SUBJECT TO
APPROPRIATIONS--
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
0 0 0
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of
this proposal.
DESCRIPTION
Missouri National Guard Enlistment Pay/Scholarship Requirements:
Sections 41.435 & 173.239
This proposal would change the calculation of reenlistment pay and
scholarship requirements for National Guard members. The maximum payment for
the reenlistment bonus and gratuity would be changed from set dollar amounts
to amounts equivalent to a designated number of months' pay. The gratuity
would be available only to members extending their initial enlistment.
Part-time students would be eligible for scholarships.
Veterans Homes/Missouri National Guardsmen: Section 42.105
This proposal would make honorably discharged National Guardsmen eligible to
secure admittance to state veterans homes.
Military Honors/Office of the Adjutant General: Sections 41.214, 41.958, &
42.135
This proposal would require the Adjutant General, at the request of the
commander of any organized veterans' organization or by friends or relatives
of any deceased person who had served in the United States armed forces
during time of war, or in the National Guard for more than 20 years, or died
while a member of the National Guard, to order a uniformed honor detail or an
honor detail from a Missouri state veterans' organization to attend the
burial. If the honor detail was provided by a veterans' organization, the
organization could bill the Adjutant General's office for the service.
It would also establish the Missouri National Guard Trust Fund. The fund
would be established to provide funding for honor guards at the burial of
qualified veterans. Until the fund exceeds $1 million only half the monies
deposited would be available for disbursement. After the fund exceeds $1
million the Adjutant General could distribute funds within the limits of
appropriation. The fund could receive contributions, gifts, bequests,
grants, and federal funds.
In each tax year beginning January 1, 1998, individuals and corporations
could contribute a minimum of $2 to the Missouri National Guard Trust Fund.
A contribution designation section would be clearly printed on income tax
forms. The names of individuals and corporations who contributed could be
supplied to the Adjutant General for the sole purpose of acknowledgement of
the gift.
Challenge Scholarship Program: 173.740
The proposal would create the Challenge Scholarship Program. The scholarship
would be claimed on individual income tax returns for credit hours completed.
The proposal would establish student eligibility requirements.
For calendar year 1998, the maximum allowable scholarship would be $500, for
the year 1999 the maximum would be $1,000, and for the year 2000 the maximum
would be $1,500.
Every eligible educational institution would furnish the students a form
prescribed by DOR showing the credit hours completed by the student for the
calendar year. Claims for the scholarship would be filed with DOR by
December 31 of the succeeding year. Challenge scholarship claims could only
be filed for the calendar years beginning on or after January 1, 1998. The
proposal would only apply to credit hours accrued after January 1, 1998.
Education Fund for Early Childhood Programs Fund: Section 313.835
For FY98 and each fiscal year thereafter unencumbered gaming commission funds
which had been transferred into the Veterans' Commission Capital Improvements
Trust Fund would be transferred as follows: a) $3 million to the Capital
Improvements Trust Fund; b) $2 million to the Missouri National Guard Trust
Fund; and c) all remaining net proceeds in the gaming commission fund would
be transferred to the Education Fund for Early Childhood Programs Fund.
It would also remove language which transfers all unencumbered gaming
commission funds to general revenue beginning July 1, 2000.
Promulgating Rules: Section 1
Rules promulgated pursuant to the provisions of this proposal would expire on
August 28 of the year after the year in which the rule became effective
unless the General Assembly extended by statute the rule or set of rules
beyond that date to a date specified by the General Assembly. In an action
challenging any rule, the Adjutant General would be required to provide by a
preponderance of evidence that the rule or threatened application of the rule
is valid, is authorized by law, is not in conflict with any law and is not
arbitrary and capricious.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space. The proposal would result in a decrease in Total State Revenues since
income tax collections are included in the calculation of Total State
Revenue.
SOURCES OF INFORMATION
Department of Elementary and Secondary Education
Coordinating Board of Higher Education
Missouri National Guard
Missouri Veterans Commission
Coordinating Board For Higher Education
Department of Revenue
Office of Administration
Department of Elementary and Secondary Education
Southwest Missouri State University
Central Missouri State University
Northwest Missouri State University
Truman State University
Missouri Southern State College
Missouri Western State College
Harris-Stowe State College
Jefferson College
Moberly Area Community College
East Central College
Three Rivers Community College
Linn State Technical College
NOT RESPONDING: University of Missouri, State Fair Community College,
Southeast Missouri State University, Lincoln University, North Central
Missouri College, Crowder College, St. Charles County Community College, St.
Louis Community College
This Fiscal Note is not an official copy and should not be quoted or cited.