Fiscal Note - SB 0336 - Creates Prisoner "Post-Secondary Education Fund"
L.R. NO. 1182-01
BILL NO. SB 336
SUBJECT: Corrections
TYPE: Original
DATE: February 18, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
General Revenue ($8,488,136) ($10,946,715) ($11,709,758)
Post-Secondary
Education Fund * $0 $0 $0
Total Estimated
Net Effect on All
State Funds ($8,488,136) ($10,946,715) ($11,709,758)
* Includes income and expenses which net to $0
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 of the Office of the State Treasurer assume this proposal would not
fiscally impact their agency.
Officials of the Department of Revenue assume this proposal will have a
minimal fiscal impact on their agency.
Officials of the Department of Corrections (DOC) estimate based upon the
current inmate telephone contract and the estimated inmate population, that
the state portion of the revenues would be $10,185,763 for FY98, $10,946,715
for FY99 and $11,709,758 for FY00. Since deposits into the Post-Secondary
Education Fund would not begin until after August 28, 1997, the revenues into
the Post-Secondary Education Fund have been calculated for 10 months in FY98
($10,185,763 x 10 months = $8,488,136).
Subject to appropriations, DOC assumes that 5% of the revenues collected and
deposited into the Post-Secondary Education Fund would be used for
administrative purposes (contracting with a private vendor), with the
remainder of the funds being used to provide the program and any necessary
capital improvements.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
GENERAL REVENUE FUND
Loss
Long Distance Profits ($8,488,136) ($10,946,715) ($11,709,758)
POST-SECONDARY EDUCATION FUND
Income
Long Distance Profits $8,488,136 $10,946,715 $11,709,758
Costs-Department of Corrections
Program Administration Cost ($424,407) ($547,336) ($585,488)
Private Vendor Contracts (8,063,729) (10,399,379) (11,124,270)
Total costs - Dept. of Corrections ($8,488,136) ($10,946,715) ($11,709,758)
ESTIMATED NET EFFECT ON
POST-SECONDARY EDUCATION FUND $0 $0 $0
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
This proposal would require any profit made by the state from long distance
calls made within correctional facilities, to be placed in the Post-Secondary
Education Fund within the state treasury. The money in this fund would be
used for post-secondary education for inmates.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional rental space.
SOURCES OF INFORMATION
Department of Corrections
Department of Revenue
Office of the State Treasurer
This Fiscal Note is not an official copy and should not be quoted or cited.