SB 0443 - Fiscal Note

Fiscal Note - SB 0443 - Starts Missouri College Guarantee Program in fall 1999 term

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 1586-01

BILL NO.: Truly Agreed To And Finally Passed SB 443

SUBJECT: Education, Higher: College Guarantee Program

TYPE: Original

DATE: April 23, 1999

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Missouri College Guarantee*	($3,000,000)	$3,000,000	$0
Total Estimated Net Effect on All State Funds	($3,000,000)	$3,000,000	$0

*The proposal would change the timing of when scholarship costs could be incurred from funding already available.

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

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials from the Coordinating Board For Higher Education (CBHE) assume the proposal would make a technical correction in the language of the College Guarantee Program allowing the CBHE to make College Guarantee awards starting in 1999 as opposed to 2000. A statutorily determined amount of money has been transferred into the College Guarantee Fund out of the Gaming Commission Fund for FY 1999. Since the same funds are available in the Missouri College Guarantee Fund regardless of when awards are first made, there is no fiscal impact. This bill would not change the amount of money distributed under the program. There is no fiscal impact on the CBHE, since the agency has already prepared to distribute awards in 1999. The fiscal impact of those preparations was outlined in the fiscal note (3150-01, 1998) addressing the establishment of the program and have been realized in the FY 2000 budget. Making awards in the fall of 1999 does not add a new administrative burden on the CBHE under the Missouri College Guarantee Program.

Based on the Oversight Division's review of SS For SCS For HCS For HBs 1519 and 1165 passed in 1998 and further discussion with CBHE officials, Oversight assumes that even though the funding is currently available for scholarships, spending authority would not occur until FY 2001 under current law. Therefore, Oversight assumes the proposal would result in scholarship costs in FY 2000 and scholarship savings in FY 2001 because the CBHE would no longer have prior year funding to spend in FY 2001 if it is authorized to spend it in FY 2000. Oversight used the minimum funding available of $3,000,000 from the Gaming Commission Fund in the fiscal impact.

Officials from the Department of Elementary and Secondary Education (DESE) assume the proposal would result in no fiscal impact to DESE or local public school districts.

Officials from the University of Missouri, Linn State Technical College, Missouri Western State College and Harris-Stowe State College assume the proposal would have no fiscal impact on the institutions.

Officials from Southwest Missouri State University assume that by year four of the program they could have an estimated 7,582 students in the program. This would require one staff person ($30,000) and one clerical support person ($30,000) and $35,000 in operating costs.

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
MISSOURI COLLEGE GUARANTEE FUND
Savings-Coordinating Board For
Higher Education (CBHE)
Scholarships	$0	$3,000,000	$0
Cost-Coordinating Board For
Higher Education (CBHE)
Scholarships	($3,000,000)	$0	$0
ESTIMATED NET EFFECT ON MISSOURI
COLLEGE GUARANTEE FUND*	($3,000,000)	$3,000,000	$0
*The proposal would change the timing of when scholarship costs could be incurred from funding already available.
FISCAL IMPACT - Local Government	FY 2000	FY 2001	FY 2002
	(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 change the starting date of the Missouri College Guarantee Program scholarships from the fall of 2000 term to the fall of 1999 term.

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

Coordinating Board For Higher Education

Department of Elementary and Secondary Education

Southwest Missouri State University

Missouri Western State College

Harris-Stowe State College

Linn State Technical College

University of Missouri

NOT RESPONDING: Central Missouri State University, Southeast Missouri State University, Northwest Missouri State University, Missouri Southern State College, Truman State University, Lincoln University

Jeanne Jarrett, CPA

Director

April 23, 1999