Fiscal Note - SB 0264 - Increases State Payments To Sheltered Workshops
L.R. NO. 1132-01
BILL NO. Truly Agreed To And Finally Passed SB 264
SUBJECT: Education, Elementary and Secondary: Disabilities
TYPE: Original
DATE: May 8, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
General Revenue ($2,300,833) ($4,141,500) ($4,141,500)
Total Estimated
Net Effect on All
State Funds ($2,300,833) ($4,141,500) ($4,141,500)
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 would increase state costs based on the following
calculation:
FY 98 5,500 FTE x 251 working days per year x ($11-$9) = $2,761,000
FY 99 5,500 FTE x 251 working days per year x ($12-$9) = $4,141,500
FY 00 5,500 FTE x 251 working days per year x ($13-$9) = $5,522,000
Because the proposal would not be effective until August 28, 1997, the
Oversight Division has only included ten-twelfths of the FY 98 cost
calculated by DESE ($2,761,000 x 10/12 = $2,300,833). The proposal does not
include a rate for FY 2000; therefore, the Oversight Division has
recalculated the FY 2000 cost at the FY 99 rate of $12 per day (5,500 x 251 x
$3 = $4,141,500).
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
GENERAL REVENUE FUND
Cost-Department of Elementary and Secondary
Education
Sheltered Workshops ($2,300,833) ($4,141,500) ($4,141,500)
Long-Range Fiscal Impact - State Government
Beginning July 1, 2000, the daily rate paid by DESE to sheltered workshops
would increase to thirteen dollars, increasing costs by $5,522,000, annually,
from the current rate of nine dollars.
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
0 0 0
FISCAL IMPACT - Small Business
Small businesses could be fiscally impacted to the extent they operate as
sheltered workshops and receive increased state funds for workers.
DESCRIPTION
The proposal would raise the daily rate per worker paid by DESE to sheltered
workshops to eleven dollars until June 30, 1998. From July 1, 1998 until
June 30, 1999, the rate would be twelve dollars per day. Beginning July 1,
2000, and thereafter, the rate would increase thirteen dollars. The current
rate is nine dollars per day, per worker.
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
This Fiscal Note is not an official copy and should not be quoted or cited.