This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0194 - Certain inappropriate school fund transfers will not cause state aid reduction
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 20-03
BILL NO.: SB 194
SUBJECT: Education, Elementary and Secondary: Fund Transfers
TYPE: Original
DATE: January 26, 1999
FISCAL SUMMARY
|
ESTIMATED NET EFFECT ON STATE FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| Local Government* | $0 | $0 | $0 |
*$3.9 million would be redistributed among school districts in FY 1999.
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 revisions to section 165.011 would not increase the cost of the basic state aid formula (Foundation Formula). Other districts violating the transfer provisions have been and would continue to be subject to the requirement to reduce a district's state Basic Formula (Foundation Aid) by the amount of transfer in violation of section 165.011, RSMo.
McDonald County R-I school district would benefit by avoiding the $3.9 million penalty that would otherwise have been deducted from its state aid payment. The $3.9 million deduction would have been redistributed back out to the other school districts as additional state payments, outside the state foundation formula. These impacts would occur in FY 1999 and would be a one-time impact. No impact would be anticipated for FY 2000.
Other districts violating the transfer provisions have been and would continue to be subject to the requirement to reduce a district's state Basic Formula (Foundation Formula) by the amount of transfer in violation of section 165.011, RSMo.
| FISCAL IMPACT - State Government | FY 2000 | FY 2001 | FY 2002 |
| $0 | $0 | $0 | |
| FISCAL IMPACT - Local Government | FY 2000 | FY 2001 | FY 2002 |
| $0 | $0 | $0 | |
| $3.9 million would be redistributed among school districts in FY 1999. | |||
| FISCAL IMPACT - Small Business | |||
| No direct fiscal impact to small businesses would be expected as a result of this proposal. | |||
DESCRIPTION
The amount deducted from a school district's state aid due to transfers from the Incidental Fund to the Capital Projects Fund would not be made for any transfer prior to the 1999-2000 school year by a district which has an area of greater than four hundred square miles and an assessed valuation per pupil of less than thirty thousand dollars and has had an enrollment increase of at least fifty percent from the fifth school year preceding the year of the transfer to the year of the transfer.
The proposal contains an emergency clause.
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
Jeanne Jarrett, CPA
Director
January 26, 1999