SB 0867 - Fiscal Note

Fiscal Note - SB 0867 - Revises the recalculated school levy based upon reassessment rollback

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 2744-01

BILL NO. SB 867

SUBJECT: Taxation and Revenue-Property: Education, elementary and Secondary

TYPE: Original

DATE: February 23, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
General Revenue	(Unknown)	(Unknown)	(Unknown)
Total Estimated Net Effect on All State Funds	(Unknown)	(Unknown)	(Unknown)

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
School Districts	Unknown	Unknown	Unknown

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 3 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Elementary and Secondary Education (DESE) assume the proposal could result in increased costs to fully fund the foundation formula. The impact would be unknown.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
GENERAL REVENUE FUND
Cost-Department of Elementary and
Secondary Education
Increased cost to fully fund formula	(UNKNOWN)	(UNKNOWN)	(UNKNOWN)
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
SCHOOL DISTRICTS
Income - Increased formula payments	UNKNOWN	UNKNOWN	UNKNOWN

FISCAL IMPACT - Small Business

This proposal is not expected to have direct fiscal effect on small businesses.

DESCRIPTION

This proposal would eliminate school district tax rate adjustments made due to reassessment from being factored out when the actual operating levy exceeds the tax rate calculated for the purpose of determining the district's entitlement.

(Current law provides for tax rate adjustments for use in the state aid formula which recalculate school districts tax levies so that the state aid for districts is not reduced due to reassessment roll backs. The recalculated levy is not used when a district's actual levy is equal to or greater than the recalculated levy. This would occur when voters raised the levy or voluntarily gave up roll backs. This proposal would remove the language calling for the adjustments levy to be abandoned and not used in calculating district entitlements for districts with actual levies equal to

DESCRIPTION (continued)

or greater than the recalculated levy.)

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. This proposal would not affect Total State Revenue.

SOURCES OF INFORMATION

Department of Elementary and Secondary Education

Jeanne Jarrett, CPA

Director

February 23, 1998