Fiscal Note - SB 0397 - Establishes Missouri College Guarantee Program
L.R. NO. 1159-03
BILL NO. SB 397
SUBJECT: Education, Higher: Gambling
TYPE: Original
DATE: March 5, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
General Revenue $0 $0 ($75,013)
Total Estimated
Net Effect on All
State Funds $0 $0 ($75,013)
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 Harris-Stowe State College, Central Missouri State University,
St. Louis Community College, Gaming Commission, Office of Administration
(Accounting), Linn State Technical College, East Central College, Truman
State University and Missouri Veterans Commission assume the proposal would
result in no fiscal impact to them.
Officials from Jefferson College assume the proposal would result in no
negative fiscal impacts, but positive fiscal impacts could result which they
could not estimate.
Officials from Missouri Western State College assume the proposal would
result in positive impacts, which they were unable to estimate.
Official from the University of Missouri state funds from the Gaming
Commission have been received by the university as one time appropriations,
such as $500,000 for Instructional Technology. Therefore, the fiscal cost to
the university would include the loss of special appropriation funds which
vary from year to year. Additional costs to the university would include
approximately $5 per student to process the scholarship paperwork. This
would include clerical time, supplies, programmer analyst time and computer
run time.
Officials from the Department of Elementary and Secondary Education (DESE)
assume the proposal would result in no cost to school districts, but state it
is unclear how the scholarship would affect the A+ Schools Program.
Officials from the Coordinating Board For Higher Education (CBHE) assume that
since the Missouri College Guarantee Program would not be active until the
beginning of FY 2001, no fiscal impact would be realized until preparation
for the implementation beginning in FY 2000. In order to provide timely
information about the program to students, $25,000 would be necessary to
print and distribute 100,000 brochures and letters about the program to high-
school students and their parents. This would begin in FY 2000 to prepare
for the following year s awards. An additional $2,000 would be necessary for
application forms in FY 2000. These costs could potentially increase
depending on the number of students who would be potential recipients.
Postage costs, estimated at $4,000 for FY 2000 would also be subject to
fluctuation based on the size of the program.
The Grant and Scholarship Program administrative staff is already small and
working to capacity. In order to administer additional awards, an
Administrative Assistant would need to be hired at an estimated salary of
$25,049 plus associated expense and equipment costs in FY 2000. In addition,
about 50 hours of a programmer s time would be required to set up the initial
database of applicants and recipients. This estimate assumes that the Board
would use basically the same method for awarding scholarships as is currently
used for the Missouri Student Grant program. If a significantly different
method were prescribed, additional programming time would be needed. At $50
per hour in consulting fees, it would cost about $2,500 for initial
programming. Subsequent maintenance of the new database could be
accomplished with existing staff.
One-time data processing costs include $2,000 for imaging records and $4,000
for storage of computer records.
There would also be costs associated with the Missouri College Guarantee
Board. While the bill requires the board to meet at least once a year, we
are estimating three meetings per year. The travel and expense costs for
this board are estimated at $200 per board member per meeting for costs of
$1,000 per meeting.
CBHE has no estimate for the amount of funds that would potentially be
available in FY 2001 for distribution out of the Gaming Commission Fund for
this program.
Per the Office of Administration, Division of Accounting, Financial Summary
for the year ending June 30, 1996, transfers into the Veterans' Home Capital
Improvement Fund (the current fund receiving transfers from the Gaming
Commission Fund until July 1, 2000) were approximately $8.4 million. The
Oversight Division assumes this amount, increased by inflation, would be the
unencumbered amount in the Gaming Commission Fund to be transferred into the
Missouri College Guarantee Fund beginning in FY 2001. In FY 2001 this would
result in a loss to the General Revenue Fund and income to the Missouri
College Guarantee Fund.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
GENERAL REVENUE FUND
Cost-Coordinating Board For Higher Education
Personal Service $0 $0 ($25,049)
Fringe Benefits 0 0 (7,146)
Expense and Equipment 0 0 (42,818)
Total Cost-CBHE 0 0 ($75,013)
Long-Range Fiscal Impact-State Government
Per the Office of Administration, Division of Accounting, Financial Summary
for the year ending June 30, 1996, transfers into the Veterans' Home Capital
Improvement Fund (the current fund receiving transfers from the Gaming
Commission Fund until July 1, 2000) were approximately $8.4 million. The
Oversight Division assumes this amount, increased by inflation, would be the
unencumbered amount in the Gaming Commission Fund to be transferred into the
Missouri College Guarantee Fund beginning in FY 2001. In FY 2001 this would
result in a loss to the General Revenue Fund and income to the Missouri
College Guarantee Fund.
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
The proposal would specify that gaming revenues for community neighborhood
programs and gang-related violence be educational.
The proposal would require that beginning July 1, 2000, and each year
thereafter the State Treasurer transfer any unencumbered moneys in the Gaming
Commission Fund to the Missouri College Guarantee Fund. The Treasurer would
make the transfer prior to making any other transfers from the fund.
The proposal would establish the Missouri College Guarantee Program to
provide scholarships for attendance at colleges, universities, vocational or
technical schools. The Coordinating Board for Higher Education would be the
administrative agency for the implementation of the program. The proposal
would create the Missouri College Guarantee Board, which would meet at least
annually.
The proposal sets eligibility requirements for the scholarships.
The amount of the scholarship would not exceed the current average cost of
tuition and other fees and costs of books at the campus of the University of
Missouri having the largest total enrollment. The scholarship would be based
on financial need and reduced by other financial aid.
Beginning with the fall 2000 term scholarships would be awarded.
The proposal would create the Missouri College Guarantee Fund and moneys in
the fund would be used solely for awarding scholarships.
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
Coordinating Board For Higher Education
Gaming Commission
Office of Administration
Veterans Commission
University of Missouri
Central Missouri State University
Truman State University
Missouri Western State College
Harris-Stowe State College
Jefferson College
East Central College
St. Louis Community College
Linn State Technical College
This Fiscal Note is not an official copy and should not be quoted or cited.