COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 2010-10
Bill No.: Truly Agreed To CCS for HS for HCS for SCS for SB 686
Subject: Education, Elementary and Secondary
Type: Original
Date: May 21, 2003
FISCAL SUMMARY
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| General Revenue | (Unknown - Expected to Exceed $100,000) | (Unknown - Expected to Exceed $100,000) | (Unknown - Expected to Exceed $100,000) |
| Total Estimated
Net Effect on General Revenue Fund |
(Unknown - Expected to Exceed $100,000) | (Unknown - Expected to Exceed $100,000) | (Unknown - Expected to Exceed $100,000) |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on Other State Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 15 pages.
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Community College Districts | (Unknown - Expected to Exceed $100,000) | (Unknown - Expected to Exceed $100,000) | (Unknown - Expected to Exceed $100,000) |
| Political Subdivisions | (Unknown - Could Exceed $100,000) | (Unknown - Could Exceed $100,000) | (Unknown - Could Exceed $100,000) |
| School Districts* | Unknown to (Unknown) | Unknown to (Unknown) | Unknown to (Unknown) |
*Unknown Savings could exceed $100,000 and Unknown Costs could exceed $100,000
ASSUMPTION
Officials from the Office of State Courts Administrator indicated this proposal would have no fiscal impact on the Courts.
Officials from the Office of State Treasurer indicated this proposal would have no fiscal impact on their agency.
Officials from Central Missouri State University indicated this proposal would have no fiscal impact on their institution.
Officials from the Secretary of State's Office (SOS) assumed the rules, regulations and forms issued by the Department of Elementary and Secondary Education and the Board of Therapeutic Massage could require as many as 38 pages in the Code of State Regulations. For any given rule, ASSUMPTION (continued)
roughly half again as many pages are published in the Missouri Register as in the Code because cost statements, fiscal notes and the like are not repeated in the Code. These costs are estimated. The estimated cost of a page in the Missouri Register is $23. The estimated cost of a page in the Code of State Regulations is $27.
The actual costs could be more or less the SOS's estimated cost of $2,337 for FY 2004. The impact of this legislation in future years is unknown and depends upon the frequency and length of rules, filed, amended, rescinded or withdrawn.
Oversight assumes the SOS could absorb the costs of printing and distributing regulations related to this proposal. If multiple bills pass which require the printing and distribution of regulations at substantial costs, the SOS could request funding through the appropriation process. Any decisions to raise fees to defray costs would likely be made in subsequent fiscal years.
SECTIONS 115.121 and 115.124
Officials from the Department of Elementary and Secondary Education indicated these sections of the proposal would have no fiscal impact on their agency, but that there could be an unknown increase in election costs to local school districts.
Officials from the Office of Secretary of State - Division of Elections assume this proposal would have no effect on their agency but would affect political subdivisions.
Officials from the Kansas City Election Board indicated any participating school district would pay a pro-rata share of election costs.
Oversight assumes that total local school district and other political subdivision costs for elections could exceed $100,000.
SECTIONS 162.261
Officials from the Department of Elementary and Secondary Education (DESE) indicated this proposal would have no fiscal impact on their agency. DESE assumes the proposal could lead to increased advertising costs for school districts; however, DESE does not anticipate significant costs.
Officials from the Kansas City, Missouri School District indicated that while the district does ASSUMPTION (continued)
currently advertise positions, they are not advertised for thirty days. There could be additional advertising costs to comply with this proposal.
Officials from the Saint Louis Public Schools indicated there would be no fiscal impact on their district.
Oversight assumes that since the current version of the proposal states that advertising for board positions will be pursuant to board policy, additional costs, if any, could be absorbed withing existing resources.
SECTION 162.1180
Officials from the Department of Elementary and Secondary Education (DESE) indicated that DESE would pay the "educational service agencies" directly which could affect calculation and distribution of school payments. They further state that the proposal has the potential to have significant fiscal impact depending on who is eligible under the proposal, whether school
districts would participate, whether payments would impact the school payment, and whether the educational service agencies could set property tax rates and collect taxes. DESE indicated that local school districts would likely see costs to manage the educational service agencies.
In response to a similar proposal, officials from the Kansas City, Missouri School District (KCMSD) indicated there would be no fiscal impact to their district.
In response to a similar proposal, officials from the Saint Louis Public Schools stated that they assume there could be a cost associated with this proposal but are unable to determine the impact, if any, at this time.
Oversight assumes that if school districts would utilize an "educational service agency", costs associated with managing the agencies could be offset by having less direct administrative costs. Also, since the language is permissive, Oversight assumes no fiscal impact.
SECTION 165.011
Officials from the Department of Elementary and Secondary Education (DESE) assumed this proposal would reorganize Section 165.011, RSMo and also add new subsection 14 for school districts that issued qualified zone academy bonds (QZAB) prior to December 31, 2002, and did not establish a tax levy in the Debt Service Fund pursuant to Section 164.161, RSMo. ASSUMPTION (continued)
The proposed change allows districts to transfer certain funds from the Capital Projects Fund to the Debt Service Fund to be invested for the purpose of paying off the federally authorized and state approved Qualified Zone Academy Bonds at the call date of the bonds. The proposal also adds new reporting provisions and establishes certain penalties for failure to comply for school districts meeting the requirements of subsection 14.
DESE further states that this proposal establishes provisions that would allow school districts to comply with the Taxpayers Relief Act of 1997.
In addition, DESE officials state this proposal would give districts meeting certain conditions the flexibility to transfer funds from the Capital Projects Fund to the Incidental Fund. Such flexibility may help districts meet their general operating obligations during years of stagnant or reduced revenues.
DESE officials stated there would be no fiscal impact on their agency resulting from this
proposal.
Officials from the Fairview R-IX School District stated that there would be no fiscal impact to their district resulting from this proposal. The Fairview School District indicated that due to current budgetary constraints, the transfer of funds permitted per this proposal may not occur.
SECTION 165.016
Officials from the Department of Elementary and Secondary Education (DESE) stated there would be no cost or savings to their agency as a result of this proposal. DESE indicated that this proposal would give flexibility to local boards of education to adjust budgets as necessary to cope with decreasing foundation formula revenue.
SECTION 171.031
In response to a similar proposal, officials from the Department of Economic Development - Division of Tourism indicated this proposal would have no fiscal impact on their agency.
SECTION 177.086
Officials from the Department of Elementary and Secondary Education (DESE) indicated that there would be no fiscal impact to their agency. DESE further states that the proposal would give local school districts greater purchasing flexibility and would save advertising costs. DESE
ASSUMPTION (continued)
was unable to determine an estimate of savings, but indicated that it could be a significant amount.
Officials from the Kansas City, Missouri School District (KCMSD) stated that KCMSD currently bids and advertises construction contracts that are $12,500 or greater. The proposal would reduce the amount spent by KCMSD to advertise and bid construction contracts less than $15,000.
In response to similar proposals, the following school districts made the following assumptions:
Officials from the Saint Louis Public Schools stated that there could be slight advertising savings based on the revised minimum bid amount and reduced time to advertise. However, these savings might be offset by escalating advertising costs in newspapers of general circulation.
Officials from the Parkway C-2 School District indicated a minimum annual savings of $15,000 would result from this proposal, primarily due to the cost of advertising. This savings would depend upon how many projects in that cost range are planned, which might vary
significantly over time.
Officials from the Nixa R-II School District did not specifically indicate a savings realization, but based on their response, Oversight assumes potential savings to this district.
Officials from the Belton School District stated that savings to the school districts would come from the following areas: 1) Fewer advertisements that cost at least $150 per ad or $300 per bid; 2) Reduced labor in preparing, receiving, and archiving bids; 3) Greater efficiency in responding to needs by reducing time lost to bidding process.
Oversight assumes that, even with minimal savings to individual school districts, the total savings could exceed $100,000 annually.
SECTION 324.245
Officials from the Department of Economic Development - Division of Professional Registration indicated this portion of the proposal would have no fiscal impact on their agency.
ASSUMPTION (continued)
SECTION 393.310
Officials from the Department of Economic Development - Public Service Commission (PSC) indicated this proposal would have no fiscal impact on the PSC or local school districts.
Officials from the Department of Economic Development - Office of Public Counsel (OPC) indicated that although this proposal may have some impact on their agency, OPC should be able to absorb the changes, however, if the requirements of the proposal are combined with additional requirements or changes OPC may incur a fiscal impact.
Section 1
Officials from the Department of Higher Education (DHE) assume this legislation would have no direct fiscal impact on the DHE. However, it would impact the higher education institutions with on-campus housing, including 2-year and 4-year public institutions. Even if students paid a fee to cover the cost of the vaccination, institutions would incur additional costs associated with tracking all on-campus students for meningitis vaccinations or exemptions. In addition, costs could be incurred to provide the related literature as described in the proposal.
Officers from Truman State University indicated this proposal would have no impact on their institution.
In response to similar proposals, officials from the Metropolitan Community Colleges and the St Louis Community College System assume this proposal would have no impact on their systems.
Officials from the University of Missouri (UM) assume the University of Missouri would incur approximately $36,000 in additional costs annually to provide the almost 11,000 students who reside on UM campuses with the necessary educational materials and service if the proposal were enacted as written. These costs would include materials, mailing, record keeping, and staff time.
Officials from North Central Community College, in response to a similar proposal, assumed this proposal would cost their organization approximately $20,000 per year for reporting and tracking.
In response to a similar proposal, officials from the Department of Health and Senior Services (DHSS) assume the proposal would not significantly impact the operations of DHSS. If the
ASSUMPTION (continued)
proposal were to substantially impact any programs, the Department would request funding through the legislative process.
| FISCAL IMPACT - State Government | FY 2004 | FY 2005 | FY 2006 |
| GENERAL REVENUE FUND | |||
| Cost - Higher Education Institutions | |||
| Program Administration (Section 1) | (Unknown - Expected to Exceed $100,000) | (Unknown - Expected to Exceed $100,000) | (Unknown - Expected to Exceed $100,000) |
| ESTIMATED NET EFFECT ON GENERAL REVENUE FUND |
(Unknown - Expected to Exceed $100,000) |
(Unknown - Expected to Exceed $100,000) |
(Unknown - Expected to Exceed $100,000) |
| FISCAL IMPACT - Local Government | FY 2004 | FY 2005 | FY 2006 |
| COMMUNITY COLLEGE DISTRICTS | |||
| Cost - Higher Education Institutions | |||
| Program Administration (Section 1) | (Unknown - Expected to Exceed $100,000) | (Unknown - Expected to Exceed $100,000) | (Unknown - Expected to Exceed $100,000) |
| ESTIMATED NET EFFECT ON COMMUNITY COLLEGE DISTRICTS |
(Unknown - Expected to Exceed $100,000) |
(Unknown - Expected to Exceed $100,000) |
(Unknown- Expected to Exceed $100,000) |
| FISCAL IMPACT - Local Government | FY 2004 | FY 2005 | FY 2006 |
| POLITICAL SUBDIVISIONS | |||
| Cost - Election costs (Section 115.121) | (Unknown - Could Exceed $100,000) | (Unknown - Could Exceed $100,000) | (Unknown - Could Exceed $100,000) |
| ESTIMATED NET EFFECT ON POLITICAL SUBDIVISIONS |
(Unknown - Could Exceed $100,000) |
(Unknown - Could Exceed $100,000) |
(Unknown - Could Exceed $100,000) |
| SCHOOL DISTRICTS | |||
| Savings - Decreased costs of advertising for competitive bids for school construction projects (Section 177.086) |
Expected to Exceed $100,000 |
Expected to Exceed $100,000 |
Expected to Exceed $100,000 |
| Cost - Election costs (Sections 115.121 and 115.124) | (Unknown - Could Exceed $100,000) | (Unknown - Could Exceed $100,000) | (Unknown - Could Exceed $100,000) |
|
ESTIMATED NET EFFECT ON SCHOOL DISTRICTS* |
Unknown to (Unknown) |
Unknown to (Unknown) |
Unknown to (Unknown) |
*Unknown Savings could exceed $100,000 and Unknown Costs could exceed $100,000
FISCAL IMPACT - Small Business
Small businesses dealing in advertising could experience a negative fiscal impact due to reduced advertising requirements for school construction projects.
DESCRIPTION
This proposal makes various changes regarding school district financial transactions and other sections pertaining to education:
Section 115.121 - SPECIAL ELECTION
Adds a primary election day in 2003 for the purpose of allowing school districts and other political subdivisions to place on the ballot bond issues for the purposes of rebuilding property damaged by severe weather during April and May of 2003.
Section 115.124 - SCHOOL BOARD ELECTIONS
School board elections no longer are exempt from being held in a case where the number of candidates who have filed for a particular office is equal to the number of positions in that office to be filled by the election.
Section 162.261 - SEVEN-DIRECTOR BOARDS OF EDUCATION - VACANCIES
Provides that no seven-director, urban, or metropolitan school district shall hire a spouse of any member of such board for a vacant or newly created position unless the position has been
advertised pursuant to board policy and the superintendent of schools submits a written recommendation for the employment of the spouse to the board of education. The names of all
applicants as well as the name of the applicant hired for the position are to be included in the board minutes.
Section 162.431 - SCHOOL DISTRICT BOUNDARY CHANGES
Applies standards to be utilized by the Board of Arbitration in determining whether a proposed school district boundary change is necessary. The standards for such a determination include the presence of: school-aged children in the affected area; actual educational harm to school-age children (significant differences in transportation time or educational opportunities); an educational necessity, not a commercial benefit to landowners.
Section 162.601.8 - ELECTION OF BOARD MEMBERS OF METROPOLITAN SCHOOL DISTRICTS
Amends Section 162.601, RSMo that deals with election of board members in metropolitan
school districts by repealing the subsection which states that no one may run for school board who is employed by the school district or who is related to an employee of the school district DESCRIPTION (continued)
within the second degree of affinity or consanguinity.
Section 162.1180 - EDUCATIONAL SERVICE AGENCIES
Creates a new section of law governing the creation of educational service agencies (as defined in 20 U.S.C. Section 7801) that develop, provide, or manage instructional services for school districts. These agencies must be designated by contract, organized as nonprofit corporations, and considered as political subdivisions whose governing board and employees are subject to the same conflict of interest provisions as public employees. Meetings of the board of a service agency are public meetings pursuant to state law (Chapter 610, RSMo). The granting of a contract to a service agency does not relieve a school district of its obligation to provide the services it has contracted for.
Section 165.011 - UNRESTRICTED FUNDS TRANSFERS
In addition to new subsections outlined below (Sections 165.011.13 through 165.011.17), the
proposal also rearranges some existing wording, deletes material that has become obsolete, and
makes some technical changes in the remainder of the section, which concerns placement and transfers of moneys in school district accounts.
Section 165.011.2 (2) (Deleted)
Deletes a provision which disallows school districts from making expenditures for certain lease purchase obligations from the district's capital projects fund unless the district levies, in the current year, a tax rate in the capital projects fund which is sufficient to generate revenues equal to or greater than the amount of such expenditure and collects such revenues and credits such revenues to the capital projects fund.
Section 165.011.4 (3) (b)
Alters the conditions by which a school district may transfer moneys from the incidental fund to the capital projects fund. The proposal prescribes that any amount expended from the incidental fund for classroom instructional capital outlays must be subtracted from the 9% of the district's entitlement used to calculate the limit on such transfers.
Section 165.011.7
Modifies the qualifications for school districts making transfers from the incidental fund to the DESCRIPTION (continued)
capital projects fund by deleting the minimum levy and lease-purchase conditions and substituting compliance with provisions concerning compensation of certificated staff in the second preceding year or payment of all penalties for the second preceding year.
Section 165.011.13
Allows school districts to transfer unrestricted funds from the capital projects fund to the incidental fund in any year in which that year's June 30 combined incidental and teachers funds unrestricted balance compared to the combined incidental and teachers funds expenditures would be less than ten percent without such transfer.
Section 165.011 .14
Creates fiscal procedures for school districts that have issued qualified zone academy bonds pursuant to federal law and have incorrectly handled the placement of the bond proceeds in the districts' accounts.
Section 165.011.15
Allows certain school districts to make a one time transfer from the incidental fund to the capital projects fund for sewer projects.
Section 165.011.16
Allows a certain school district to make a one time transfer from the incidental fund to the capital projects fund for the purpose of improving the library media and technology center for the district's high school and middle school.
Section 165.011.17
Sets out conditions under which a school district may refinance certain lease-purchase obligations.
Section 165.016 - SALARY COMPLIANCE EXCEPTIONS
The already existing provisions of this section shall not apply to any school district that has unrestricted fund balances in the combined incidental and teacher funds on June 30th of the
preceding year which are equal to or less than seventeen percent of the combined expenditures DESCRIPTION (continued)
for the preceding year from these funds in any year in which state funds distributed pursuant to Section 163.631, RSMO, lines 1 to 10 plus line 14 are no more than 96% of such state funds distributed in fiscal year 2002.
The provisions of the this section of the proposal also shall not apply to any district which meets the following criteria:
1) With ten percent or more of its assessed valuation that is owned by one person or corporation as commercial or personal property who is delinquent in property tax payment;
2) With unrestricted fund balances in the combined incidental and teacher funds on June 30th of the preceding year which are equal to or less than one half of the local property tax revenue for the previous year; and
3) In any year in which state funds distributed pursuant to section 163.031, RSMo, lines 1 to 10 plus line 14 are no more than ninety-six percent of state funds distributed in fiscal year 2002.
Section 171.031 - SCHOOL TERM CALENDARS
Repeals the prohibition against starting school earlier than September 1.
Section 177.086 - SCHOOL CONSTRUCTION PROJECTS; ADVERTISEMENT OF BIDS
Raises from $12,500 to $15,000 the threshold requiring bids for school construction projects. It requires public advertisement once a week for two consecutive weeks in a newspaper of general circulation located within the city in which the school district is located. If there is no such newspaper, advertisement will be in a qualified newspaper of general circulation in the county, or if there be no such newspaper, in a qualified newspaper of general circulation in an adjoining county. Advertisements may be in business, trade, or minority papers.
Section 324.245 - THERAPEUTIC MASSAGE EDUCATIONAL REQUIREMENTS
The Board of Therapeutic Massage is authorized to promulgate rules and regulations regarding educational requirements for licensure, including, but not limited to, provisions that allow clock hours of supervised instruction at a vocational technical school.
DESCRIPTION (continued)
Section 393.310 - NATURAL GAS PURCHASES BY SCHOOLS
Current law allows schools to aggregate purchases of natural gas and pipeline transportation services through contracts negotiated by a not-for-profit school association. Gas corporations
were to file experimental tariffs with the Public Service Commission (PSC) by August 1, 2002. Tariffs would be approved if there were no negative financial impact on the gas corporation, its customers, and local taxing authorities. Gas corporations cannot require special metering for schools that use 100,000 or fewer therms annually.
This proposal states that, except as may be mutually agreed be the gas corporations and eligible schools entities and approved by the PSC, such tariffs shall not require eligible school entities to
be responsible for pipeline capacity charges for longer than is required by the gas corporation's
tariff for large industrial or commercial basic transportation customers.
Section 1
Requires students enrolled in public institutions of higher education to receive meningitis vaccine.
Beginning with the 2004-2005 school year and for each school year thereafter, every public institution of higher education in this state shall require all students who reside in on-campus housing to sign a written waiver stating that the institution of higher education has provided the student, or student's parents, with detailed written information on the risks associated with meningococcal disease and the availability and effectiveness of the menigococcal vaccine.
Any student electing to receive the meningococcal vaccine shall not be required to sign a waiver and shall present a record of said vaccination to the institution of higher education.
Each public university or college in this state would maintain records on the meningococcal vaccination status of every student residing in on-campus housing at the university or college, including any written waivers executed.
Institutions of higher education would not be required to provide or pay for vaccinations against meningococcal disease.
Sections 115.121, 165.011, and 165.016 have an emergency clause.
DESCRIPTION (continued)
This legislation 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
Kansas City, Missouri School District
St Louis Public Schools
Department of Economic Development
Public Service Commission
Office of Public Counsel
Division of Professional Registration
Office of State Courts Administrator
Department of Higher Education
Office of Secretary of State
Administrative Rules Division
Elections Division
Kansas City Election Board
Office of State Treasurer
Office of Attorney General
Central Missouri State University
Special School District of Saint Louis County
Parkway C-2 School District
Fairview R-IX School District
Nixa R-II School District
Belton School District
Truman State University
Metropolitan Community Colleges
St Louis Community College System
University of Missouri
North Central Community College
Department of Health and Senior Services
Mickey Wilson, CPA
Director
May 21, 2003