COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 3316-01
BILL NO.: SB 754
SUBJECT: Education, Elementary and Secondary: County School Fund
TYPE: Original
DATE: January 21, 2000
FISCAL SUMMARY
FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
State School Moneys | ($26,000,000 to $30,000,000) | ($26,000,000 to $30,000,000) | ($26,000,000 to $30,000,000) |
Total Estimated
Net Effect on All State Funds |
($26,000,000 to $30,000,000) | ($26,000,000 to $30,000,000) | ($26,000,000 to $30,000,000) |
FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
Local Government | $26,000,000 to $30,000,000 | $26,000,000 to $30,000,000 | $26,000,000 to $30,000,000 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
ASSUMPTION
Officials from the Department of Elementary and Secondary Education (DESE) assume the proposal could potentially increase the cost of the basic state aid formula by approximately $26 to $30 million. Currently, the revenue from the county school fund as placed in the Teachers Fund is a deduction from the state cost (Line 3 of the formula). If local boards have the option of placing the money in the Capital Projects Fund, it is anticipated that most boards will choose to place the money in the Capital Projects Fund so that equipment can be purchased and renovations or additions to the physical plant can be made. Therefore, if the county school fund money is placed in the Capital Projects Fund by the district, it would not be a deduction in the basic state aid formula and the state would have to replace that money if a proration factor of 1.00 is maintained. That amount in FY 2000 is $26 million and generally has been between $26 to $30 million.
FISCAL IMPACT - State Government | FY 2001
(10 Mo.) |
FY 2002 | FY 2003 |
STATE SCHOOL MONEYS FUND | |||
Cost-Department of Elementary and Secondary Education (DESE) | |||
State Aid | ($26,000,000 to | ($26,000,000 to | ($26,000,000 to |
$30,000,000) | $30,000,000) | $30,000,000) | |
FISCAL IMPACT - Local Government | FY 2001
(10 Mo.) |
FY 2002 | FY 2003 |
SCHOOL DISTRICTS | |||
Income-School Districts | |||
State Aid | $26,000,000 to | $26,000,000 to | $26,000,000 to |
$30,000,000 | $30,000,000 | $30,000,000 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
The proposal would require moneys received from the county school fund be placed to the credit of the fund designated by the school board, rather than the Teachers' Fund.
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 21, 2000