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 0502 - Portion of debt service and capital projects levies may generate state school aid & apply toward minimum levy
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 2536-01
BILL NO. SB 502
SUBJECT: Education, Elementary and Secondary
TYPE: Original
DATE: January 13, 1998
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS Net Effect on All State Funds* *Minimum loss. could be greater as more school districts take advantage of the proposal ESTIMATED NET EFFECT ON FEDERAL FUNDS Net Effect on All Federal Funds
FUND AFFECTED
FY 1999
FY 2000
FY 2001 General Revenue*
($6,269,913)
($6,269,913)
($6,269,913) State School Moneys
$0
$0
$0 Total Estimated
($6,269,913)
($6,269,913)
($6,269,913)
FUND AFFECTED
FY 1999
FY 2000
FY 2001 None
$0
$0
$0 Total Estimated
$0
$0
$0
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| Local Government | $6,269,913 | $6,269,913 | $6,269,913 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 3 pages.
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Revenue, and the State Tax Commission stated the proposal would have no fiscal or administrative effect on their agencies.
Officials from the Department of Elementary and Secondary Education (DESE) assume state costs would be possible due to the increased cost to fully fund the foundation formula. As of Fiscal Year 1998, fifteen districts would qualify for increased aid. Other school districts could switch lease purchases to general obligation bonds and increase amounts of state aid eligibility.
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| GENERAL REVENUE FUND | |||
| Cost-Department of Elementary and | |||
| Secondary Education | |||
| Foundation Formula | ($6,269,913) | ($6,269,913) | ($6,269,913) |
| NET EFFECT ON GENERAL | |||
| REVENUE FUND | (6,269,913) | ($6,269,913) | ($6,269,913) |
| STATE SCHOOL MONEYS FUND | |||
| Income-General Revenue Fund | $6,269,913 | $6,269,913 | $6,269,913 |
| Cost-Distributions to School Districts | ($6,269,913) | ($6,269,913) | ($6,269,913) |
| ESTIMATED NET EFFECT ON | |||
| STATE SCHOOL MONEYS FUND | $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| Income-School Districts | |||
| Foundation Formula | $6,269,913 | $6,269,913 | $6,269,913 |
| ESTIMATED NET EFFECT ON | |||
| SCHOOL DISTRICTS | $6,269,913 | $6,269,913 | $6,269,913 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
The proposal would redefine "operating levy for school purposes" to allow school districts which make no lease purchase payments or transfers under section 165.011 to include up to thirty cents of the debt service or capital funds projects fund levies as part of the operating levy.
The proposal would allow, beginning January 1, 1998 for the 1998-99 school year, not more than fifteen cents of the minimum tax rate of 2.75 to be counted from the debt service and capital projects funds. The portion of state aid received by a district based on the tax rate in the debt service or capital projects funds would be placed to the credit of the debt service or capital projects fund, respectively.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. This legislation would not affect Total State Revenue.
SOURCES OF INFORMATION
Department of Elementary and Secondary Education
Department of Revenue
State Tax Commission
Jeanne Jarrett, CPA
Director
January 13, 1998