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 0694 - Prekindergarten programs for 3 and 4-year olds
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 2336-01
BILL NO. SB 694
SUBJECT: Education, Elementary and Secondary: Prekindergarten
TYPE: Original
DATE: February 10, 1998
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS and Education Net Effect on All State Funds
FUND AFFECTED
FY 1999
FY 2000
FY 2001 Early Childhood Care
$0
$0
$0 General Revenue
$0
$0
($32,016,452) Gaming Commission
$0
$0
$0 Total Estimated
$0
$0
($32,016,452)
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 5 pages.
FISCAL ANALYSIS
ASSUMPTION
Officials from the Office of Administration assume the proposal would result in no fiscal impact on them.
Officials from the State Treasurer's Office assume a new accounting fund would be created by the proposal. The proposal would slightly increase the number of accounting transactions that would be processed through the accounting system. The State Treasurer's Office would absorb the costs associated with increased transactions through its current appropriations.
Officials from the Department of Elementary and Secondary Education (DESE) assume census information could be used to estimate the number of three and four year olds. However, this may not be possible for the number of three and four year olds eligible for free and reduced price lunches. This would be subject to appropriation, and no fiscal impact could be calculated.
DESE assumes the proposal includes $1,000 per day per child. DESE would only be involved in the educational portion of three to four hours per day. The remainder of the day would be supported by other funding sources, such as TANF.
Based on information from DESE, the prekindergarten program has never been funded. Therefore, the Oversight Division assumes the program would not be funded until July 1, 2000, when the proposal directs money from the Gaming Commission Fund to the Early Childhood Care and Education Fund. Based on information from the Office of Administration regarding another proposal, transfers from the Gaming Commission Fund in FY 2001 are estimated to be $32,016,452. Therefore, Oversight assumes this amount would be used to fund the prekindergarten program, beginning in FY 2001.
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| EARLY CHILDHOOD CARE | |||
| AND EDUCATION FUND | |||
| Income-Department of Elementary | |||
| and Secondary Education | |||
| Transfers from Gaming Commission | $0 | $0 | $32,016,452 |
| Cost-Department of Elementary | |||
| and Secondary Education | |||
| Prekindergarten Program | 0 | 0 | (32,016,452) |
|
ESTIMATED NET EFFECT ON EARLY | |||
| CHILDHOOD CARE AND EDUCATION FUND | $0 | $0 | $0 |
| GENERAL REVENUE FUND | |||
| Loss-General Revenue | |||
| Transfers from Gaming Commission Fund | $0 | $0 | ($32,016,452) |
| GAMING COMMISSION FUND | |||
| Savings-Gaming Commission | |||
| Transfers to General Revenue Fund | $0 | $0 | $32,016,452 |
| Cost-Gaming Commission | |||
| Transfers to Early Childhood Care and | |||
| Education Fund | 0 | 0 | (32,016,452) |
|
ESTIMATED NET EFFECT ON | |||
| GAMING COMMISSION FUND | $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| Income-School Districts | |||
| Reimbursement from DESE | $0 | $0 | $32,016,452 |
| Cost-School Districts | |||
| Prekindergarten Program | 0 | 0 | (32,016,452) |
|
ESTIMATED NET EFFECT ON LOCAL | |||
| SCHOOL DISTRICTS | $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 expand the prekindergarten programs to include free and reduced price lunch eligible students ages three and four. The proposal deletes the provision that state aid would be provided for no more than a half-day program. Children would be required to reach the age of three before the first day of August, as opposed to October under current law, prior to the start of the school year.
School districts would receive aid based on the full-time equivalency of children enrolled in the district's prekindergarten program. Classes would be reimbursed at a rate initially established at one thousand dollars per full-time equivalent child eligible for free and reduced lunch. The rate of reimbursement would be adjusted annually. Funds not expended in the year of appropriation would be placed to the credit of the Early Childhood Care and Education Fund.
School districts could charge an enrollment fee based on a sliding scale determined family income.
Beginning July 1, 2000, and each year thereafter, the State Treasurer would transfer any unencumbered moneys in the Gaming Commission Fund to the Early Childhood Care and Education Fund in an amount not to exceed the current year appropriation for reimbursements. The Treasurer would perform such transfer prior to making any other transfer from the Gaming Commission 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
State Treasurer's Office
Office of Administration
Jeanne Jarrett, CPA
Director
February 10, 1998