SB 0778 - Fiscal Note

Fiscal Note - SB 0778 - Revises Req. For School Tax Levies For Capital Projects

L.R. NO.  2683-01
BILL NO.  SB 778
SUBJECT:  Schools:  Taxation and Revenue
TYPE:     Original
DATE:     February 9, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED               FY 1997              FY 1998              FY 1999
General Revenue ($0 to $33,000,000)  ($0 to $33,000,000)  ($0 to $33,000,000)

Total Estimated
Net Effect on All
State Funds     ($0 to $33,000,000)  ($0 to $33,000,000)  ($0 to $33,000,000)

                   ESTIMATED NET EFFECT ON FEDERAL FUNDS


FUND AFFECTED               FY 1997              FY 1998              FY 1999
None                             $0                   $0                   $0

Total Estimated
Net Effect on All
Federal Funds                    $0                   $0                   $0

                    ESTIMATED NET EFFECT ON LOCAL FUNDS


FUND AFFECTED               FY 1997              FY 1998              FY 1999
Local Government  $0 to $33,000,000    $0 to $33,000,000    $0 to $33,000,000


                              FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Elementary and Secondary Education (DESE)
assume the proposal could increase the cost to fully fund the foundation
formula.  Based on tax rates currently in the capital projects fund, the
proposal could result in costs of $33 million.

Officials from the Office of Administration and State Tax Commission assume
the proposal would result in no fiscal impact to the agencies.


FISCAL IMPACT - State Government           FY 1997      FY 1998      FY 1999
                                          (10 Mo.)
GENERAL REVENUE FUND

Cost-Department of Elementary and Secondary
Education
  Full Funding of Foundation Formula        ($0 to       ($0 to       ($0 to
                                      $33,000,000) $33,000,000) $33,000,000)

FISCAL IMPACT - Local Government           FY 1997      FY 1998      FY 1999
                                          (10 Mo.)
Income-School Districts
  Full Funding of Foundation Formula         $0 to        $0 to        $0 to
                                       $33,000,000  $33,000,000  $33,000,000
DESCRIPTION

The proposal would delete the requirement that prior to setting the tax rates
for the teachers' and incidental funds, school boards would set the tax rate
for the capital projects fund to meet its expenditures, except that the tax
rate in the capital projects fund would not require the reduction of the
equalized combined rates for the teachers' and incidental funds to be less
than the greater of the minimum operating levy for the current year for
school purposes plus the voter approved increase in the tax rate ceiling in
any school district in a fourth class county that had an existing lease
purchase for capital projects at the time of the election.

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
State Tax Commission
Office of Administration

NOT RESPONDING:  Lexington School District