SB 0767 - Fiscal Note

Fiscal Note - SB 0767 - Disposition of revenue in the Gaming Commission Fund

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 3255-05

BILL NO. SCS For SB 767

SUBJECT: Education, Higher: Gaming Commission Fund

TYPE: Original

DATE: March 2, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
General Revenue	($372,989) TO (UNKNOWN)	($439,264) TO (UNKNOWN)	($32,467,361) TO (UNKNOWN)
Missouri National Guard Trust	$2,979,750 TO UNKNOWN	$2,979,400 TO UNKNOWN	$2,978,782 TO UNKNOWN
Veterans' Commission Capital Improvement Trust	($28,381,170 to $33,381,170)	($28,697,601 to $30,697,601)	$1,526,632
Education Fund for Early Childhood Programs	$0	$0	$0
Gaming Commission	$0	$0	$0
Total Estimated Partial Net Effect on All State Funds	*($25,774,409 to $30,774,409)	*($26,157,465 to $28,157,465)	*($27,961,947)

*Partial net effect excludes unknown cost for MNG education assistance grants (General Revenue Fund) and unknown income for tax refund designations (MNG Trust Fund).

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 19 pages.

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Veterans' Administration	($409,915)	($464,425)	($518,935)
Total Estimated Net Effect on All Federal Funds	($409,915)	($464,425)	($518,935)

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Local Government	$0	$0	$0

FISCAL ANALYSIS

ASSUMPTION

Officials from the Coordinating Board For Higher Education (CBHE) assume the proposal would not have a direct fiscal impact on the CBHE because the scholarship program is administered by the Office of the Adjutant General of the Missouri National Guard, and the CBHE is not involved in any way with the Gaming Commission Fund.

Officials from State Treasurer's Office (STO) assume two new accounting funds would be created. The proposal would slightly increase the number of accounting transactions processed. It would also increase the funds available for investment. The STO would absorb the costs associated with increased accounting transactions and investments through its current appropriations.

Officials from the Department of Social Services (DOS) assume the proposal would generate adequate revenues to support the pre-kindergarten programs and the 20% reimbursement increase for all accredited providers. DOS officials assume no cost would be assessed to DOS except for development, implementation, maintenance, and evaluation of policy, procedures, financial impact, and system modifications of interfacing sections within DOS relating to these issues. DOS officials also assume that accreditation standards set by recognized, early childhood accrediting organization would be used in determining a provider's eligibility for a higher payment.

Officials from the Department of Elementary and Secondary Education (DESE) assume school districts would be required to complete grant applications for the Early Childhood Education Program.

The proposal states the remaining net proceeds in the Gaming Commission Fund for fiscal years 1999 and thereafter, after transfers to the Veterans' Commission Capital Improvement Trust Fund and Missouri National Guard Trust Fund, would be transferred to the Education Fund for Early Childhood Programs. No less than 80% of the funds deposited in the fund would be appropriated to DESE and awarded to school districts for competitive grants. No less than 10% of the funds would be appropriated to the Department of Social Services (DOS). Because the proposal does not direct the remaining 10%, the Oversight Division has included it in DESE's portion of the transfer, since DESE would be appropriated the largest percentage of the transfer.

Therefore, 90% of the transfer from the Gaming Commission Fund is included in the Education Fund for Early Childhood Programs in the fiscal impact for DESE and 10% is included for DOS.

Officials from the University of Missouri assume the proposal would have little or no fiscal impact on the university.

ASSUMPTION (continued)

Officials from the Office of the State Public Defender, Office of Prosecution Services, Department of Public Safety - Highway Patrol and Department of Corrections assume the proposal would have no fiscal impact on them.

Officials from the Missouri Veterans' Commission (MVC) assume state veterans homes having been built with federal grant monies under the State Veterans Home Construction Grant Program could admit up to 25% persons not defined as veterans under the federal guidelines. Those persons who are residents of state veterans homes, and are not considered veterans under

federal guidelines, would not be eligible for per diem payments to the state, aid and attendance, or pension. This loss in federal funds would have to be borne by the state or the residents. MVC officials state the Missouri National Guard (MNG) estimated there are currently 20,000 honorably discharged National Guardsmen in the state. Of that number, they estimate that 25% of the guardsmen are already eligible for admission to the Missouri Veterans' Homes due to prior service in the United States Armed Forces. Thus the 585,000 Missourians currently eligible for admission to the Missouri Veterans' Homes would be increased by 15,000 to a total of 600,000.

MVC officials assume based on the above figures, and assuming that eligible guardsmen would utilize Missouri Veterans' Homes a the same rate as veterans of the U.S. Armed Forces, MVC estimates that at any given time their census would include 2.5% guardsmen. Applying that 2.5% to the current 753 beds, they would have an average of 18.8 guardsmen in the five homes they are currently operating.

MVC states the Veterans Administration (VA) pays a per diem of $40 per day for each eligible veteran in the home, which equates to $1,217 per month. In addition to the $1,217 per month paid by the VA, each resident is required to contribute up to $1,170 per month, based on their ability to pay. They estimate the average resident has an income of $570 per month, which qualifies them for aid and attendance through the VA of approximately $600 per month. Guardsmen would not qualify for the $1,217 per month per diem payment nor the average of $600 per month aid and attendance allowance. This $1,817 times the number of months in a year times an average of 18.8 guardsmen equals $409,915 per year loss in federal VA funds.

The MVC currently has state and federal funds committed for a 200 bed home in Cameron and a 200 bed home in Warrensburg. State funds have been committed for a new 200 bed home in Mount Vernon, which will increase the number of beds there by 100. State funds have also been committed for an additional 100 beds in St. Louis. MVC officials assume only the Cameron and Warrensburg facilities would have an impact in the fiscal note period. They assume these facilities would increase the capacity by 100 beds in FY 2000 and by 200 beds in FY 2001.

MVC assumes that when the above mentioned construction projects are completed, the

ASSUMPTION (continued)

Commission will have a total of 1,350 beds. Applying the $1,817 per month loss of revenue to 2.5% of those beds produces an annual loss of revenue of $735,885 when all construction in the Commission's long-range plan is completed.

MVC assumes the removal of the July 1, 2000, sunset clause and replacing it with the June 30, 1998, sunset clause would have no fiscal impact because there would be sufficient money in the Veterans' Commission Capital Improvements Trust Fund at the end of FY 1998 to complete their long-rang capital improvements plan.

Based on the information from the MVC, the Oversight Division has calculated the fiscal impact for the veterans' homes as a loss to federal funds as follows:

FY 99 $1,817 in federal aid per month x 12 months x 18.8 guardsmen = $409,915

FY 00 $409,915 + [$1,817 federal aid x 12 months x (100 beds x 2.5% guardsmen)] = $464,425

FY 01 $409,915 + [$1,817 federal aid x 12 months x (200 beds x 2.5% guardsmen)] = $518,935

Officials from the Department of Revenue (DOR) assume the Division of Taxation and the Administration Division Office would collect and transmit the revenues with existing staff and resources. However, DOR officials assume there would be a $250 telephone script change and an estimated $20,000 additional cost to the telephone 800 usage charge in order for the telephone return filers (telefile) to participate in the program. The Oversight Division has included these costs in the Missouri National Guard Trust Fund.

The DOR Information System Division would complete all modifications with existing staff and resources. These modifications would include income and corporate tax system changes, form changes and report changes.

ASSUMPTION (continued)

Officials from the Office of Administration, Division of Budget and Planning, estimate the Gaming Commission Fund would distribute the following amounts:

Fund FY 99 FY 00 FY 01

Veterans' Commission Capital Improvement

Trust Fund $3,000,000 $3,000,000 $3,000,000

Missouri National Guard Trust Fund $3,000,000 $3,000,000 $3,000,000

Early Education Trust Fund $24,746,937 $24,726,252 $26,016,452

Total Transfers $30,746,937 $30,726,252 $32,016,452

Officials from the City of Kansas City estimate the restoration costs of the Liberty Memorial would be $21,530,000. Total renovation and expansion costs of the museum and exhibits would be $40,325,000 (museum provision - $10,300,000; museum finishes - $18,980,000; and exhibits - $11,045,000). City officials assume the costs are based on the 1996 condition survey including further deterioration of existing buildings, and structure and stone is not included. Allowance for inflation is not included. Annual post restoration/renovation and estimated repairs/maintenance costs would approximate the following:

Year 1 $160,000

Year 2 $164,800

Year 3 $169,744

Year 4 $174,836

Year 5 $180,081

Year 6 $185,484

Year 7 $191,048

Year 8 $196,780

Year 9 $202,683

Year 10 $208,764

City officials assume a city match of 50% funding for restoration, renovation and expansion is anticipated although the exact source has not yet been determined.

The Oversight Division has included a range of costs in the fiscal impact of $0 to $5,000,000 in FY 1999 and $0 to $2,000,000 in FY 2000 in the Veterans' Commission Capital Improvement Trust Fund, since the proposal states the transfers for the memorial would not exceed $5 million

ASSUMPTION (continued)

dollars in any one fiscal year and $7 million total appropriation. Oversight has also included income to the City of Kansas City and cost to the City for the same amounts.

Officials from the Department of Health (DOH) state they were unable to obtain estimates on the number of districts and facilities which would receive grants for preschool programs. There are 525 school districts in the state and 1,240 elementary schools. 57 have licensed programs

now. The average number of facilities per caseload for Child Care Facilities inspectors is 70.

The following additional assumptions were made by DOH in calculating this fiscal estimate:

Assuming that of the 1,183 facilities (1,240 elementary schools - 57 with licensed programs), grants would be awarded to no more than 25% of the facilities which would receive grants and licensing by DOH. This calculates to 296 additional facilities (1,183 x 25%) requiring licensing inspection. At 70 facilities per inspector, DOH would require 4 additional inspectors (296/70). Additional clerical support would be needed to process the applications. Annual sanitation inspection for licensed facilities are currently contracted to local health departments at $105 per facility for an annual cost of $31,080 ($105 x 296 additional facilities). The sanitation inspections are in addition to the licensing inspection conducted by the Child Care Facility Specialist.

DOH officials assume 4 Child Care Facility Specialists II ($29,760) would be needed to conduct annual child care inspections of facilities, perform follow up reinspections as necessary, conduct complaint investigations, and provide technical assistance on licensure standards.

DOH also assumes 1 Clerk Typist II ($16,512) would provide clerical support for inspectors, processing of applications and issuance of licenses.

The Oversight Division has included 3 Child Care Facility Specialists II in the fiscal impact, assuming 240 working days in one year with a Child Care Facility Specialist inspecting the additional facilities twice per year and spending one day at each facility (240/2=120 facilities per year per Child Care Facility Specialist). 296 additional facilities divided by 120 facilities per FTE=2.5, rounded to 3, FTE. Oversight has excluded the Clerk Typist II, assuming the clerical support could be provided with existing resources.

Officials from the Missouri National Guard (MNG) state an informal committee made up of officers and enlisted members of the MNG, the Office of the Adjutant General financial and personnel staff, a Marine Corps League representative, and Missouri Association of Veterans' Organizations (MAVO) met and discussed broad guidelines for the honors program. The committee felt that the number of services requested would increase substantially each year as word of military honor program disseminated.

ASSUMPTION (continued)

MNG officials assume that based on mortality statistics provided by Veterans' Affairs, the veteran mortality rate for Missouri would exceed the 13,000 rate until 2016 with the high year being 2010 and 13,935 projected deaths annually.

For the outgoing fiscal year, 13,000 veteran deaths are projected annually by MNG. The

committee estimated an initial annual detail requirement of approximately 8,580 memorial services, roughly 2/3 (66%) of the number eligible. MNG anticipates that the first services

would be provided in FY 1999 with program development start-up personnel hired as early as September, 1998, building to full employment and military honor services being performed as soon as possible during state FY 1999.

At this point in time, MNG officials could not project the demand for honor detail memorial services for the 13,000 annual veteran deaths projected through 2015. Until the demand is identified, the MNG proposes to initiate the program with the hire of key personnel shortly after September 1, 1998. Initially, administrative procedures and operational policies would be developed along with staff studies to help determine demand for details and establish the appropriate staffing locations for the three details. MNG projects the first honor detail funeral services would be performed starting February 1. Three teams would be projected to be placed in service with initially two metro and one rural. For areas where honor details are requested, but not located geographically near these teams or when the demand exceeds the teams' capabilities, local veterans' organizations would be contracted with to provide necessary services. MNG anticipates that metro teams would perform two details per day, and the rural detail would

perform one service per day. Based on these assumptions, the MNG would be able to conduct 1,825 services per year. Unfortunately these three regional teams would not anticipate to be able to meet the demand generated for the entire state. The remaining demand requirements would be conducted by active duty personnel, and MNG assumes that the active military would continue to support approximately 1,000 honor services per year, and veterans' organizations through contracts as far as funding would allow (at an estimated $100 per service established by the committee).

MNG assumes they would need the following FTEs:

1 Program Director: Primarily responsible for execution of funeral program, budgeting, program development, operations, coordination, public affairs, administration, and ensure sustainment of services.

3 Administrative Assistants: Perform Area Headquarters administrative functions: clerical, data entry, accounting, expense account processing, payments to Veterans' organizations, time sheet, record keeping, program coordination, 1 per area command, participates in funeral details as

ASSUMPTION (continued)

available and required.

1 Training Coordinator: Coordinate and develop military honors training and certification programs between military details, funeral directors, and veterans organizations. Establish protocol policy and provide quality assurance and communication.

3 Area Coordinators: Scheduling coordination and serve as the official liaison between the Program Director, area veterans organizations, funeral directors, active military components, and the area detail commander. Ensures that details are scheduled and performed by either National Guard military detail personnel or other resources when National Guard resources are fully committed.

3 Area Commanders: Responsible for Area Headquarters operations and honor detail scheduling. Administrative and operational support to include compliance with military detail policy, state personnel and purchasing rules, duty performance, work closely with Area Coordinator in maintaining liaison with area veterans organizations and funeral directors, participates in officer funerals.

3 Team Leaders: Supervise, schedule detail personnel, arrange for temporary detail support when necessary, coordinate detail operational needs, and serves as full-time team member, serves as flag presenter.

18 Military Honor Team: 6 members per team, to conduct ceremonies as follows: flag detail, military music, rifle salute, required to be staffed for each military honor team.

11.4 Part-Time Military and Clerical: Part-time personnel would be needed to fill in for full-time personnel for time off, Mondays lost to weekends of 10,400; holidays of 1,200; vacation of 1,500; sick leave of 500 = 13,600 shortfall over a 7 day week full-time projected workload. Military funeral honor details would occur 7 days a week. These part-time positions would be necessary to avoid expensive overtime payments.

MNG assumes contract details for veterans' organizations would be $287,500 in FY 1999, $575,000 in FY 2000 and $575,000 in FY 2001.

In response to a similar proposal in the prior year, officials of the Missouri National Guard, Office of the Adjutant General, stated that the figures used for their estimated costs which would result from this proposal are based on information provided by the Missouri Funeral Directors Association regarding the number of veteran deaths projected by year in Missouri. It was estimated that in FY 1998 there could be 12,420 veteran deaths in Missouri. Also, the

ASSUMPTION (continued)

funeral honors detail personnel in the previous version of the proposal was 6 (5 riflemen/riflewomen and 1 bugler). Adjutant General officials noted that this was not in compliance with military funeral personnel requirements outlined in Field Manual 22-5, Drill and Ceremonies. Also, the amount to be reimbursed to the veterans' organizations was at the bill's maximum rate of 6 people at $30 per person or $180 per contracted detail.

In a response to a similar proposal in the prior year, Adjutant General officials assume that they would request the following FTE to implement the proposal: one (1) Program Manager; one (1) Deputy Program Manager; one (1) Accountant; one (1) Clerk II; one (1) Military Honors Trainer; one (1) Detail Supervisor; and twelve (12) Military Honor Team Members (10 riflemen/riflewomen and 2 buglers provide military funeral details assuming 10 details per week x 52 weeks).

For purposes of this fiscal note, Oversight assumes that initially, not all of the public eligible for the proposed service would request the ceremony. As awareness of the service increased, Oversight assumes the need for additional staff to perform the ceremony would also increase. Therefore, in FY 1999 Oversight assumed the Adjutant General would need one (1) Program Director, one (1) Training Coordinator, and one Military Honors Team comprised of five (5) riflemen/riflewomen and one (1) bugler. For FY 2000, Oversight assumes the requests for the proposed services would increase and there would be the need for Military Honors Teams from veterans' organizations. Therefore, for FY 2000, in addition to the staff requested in FY 1999, Oversight assumes there would be expenses to reimburse those veterans' organizations as

required by this proposal. In FY 2001, Oversight assumes that the number of requests for the ceremonies would continue to increase and there would be a need for an additional Military Honors Team (6 FTE), one (1) Team Leader, one (1) Area Coordinator and two (2) Administrative Assistants, with associated expense and equipment. In FY 2001, Oversight also assumes the need for Military Honors Team from veterans' organizations and subsequent expense reimbursements from the Adjutant General would continue.

In a response to a similar proposal in the prior year (HCS For SS For SB 208), officials of the Missouri National Guard (MNG) estimated all costs which relate to the Reenlistment Program and for actual payments anticipated to be made to Guard members reenlisting in the Missouri National Guard. MNG officials would not anticipate the need for additional staffing, operating supplies, or rental space as a result of this proposal.

MNG officials used pay scale for E-4 with over four years of service. They assumed 50% of first-timers would take advantage of the Reenlistment Bonus Program. MNG staff further assumed that first-timers reenlisting would reenlist for the maximum three year reenlistment. If this program is to be taxed, MNG officials assume the soldier's bonus payment would be net after

ASSUMPTION (continued)

taxes and applicable fringes. A 3% increase in base pay was projected for FY 1999 and FY 2000 for federal military personnel. MNG assumes the National Guard Reenlistment program would run $208,333 in FY 1999, $257,500 in FY 2000, and $265,225 in FY 2001.

The Oversight Division has included unknown cost in the General Revenue Fund for MNG Education Assistance Grants, since the proposal could increase tuition reimbursement and

expand eligibility.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
GENERAL REVENUE FUND
Savings-Department of Revenue
Tax Refund Designations	UNKNOWN	UNKNOWN	UNKNOWN
Cost-Department of Revenue
Transfer of Tax Refund Designations
to Missouri National Guard Trust Fund	(UNKNOWN)	(UNKNOWN)	(UNKNOWN)
Cost-Department of Health
Personal Service (3 FTE)	($76,260)	($93,800)	($96,145)
Fringe Benefits	(21,376)	(26,293)	(26,949)
Expense and Equipment	(35,940)	(30,591)	(31,510)
Sanitation Inspections	(31,080)	(31,080)	(31,080)
Total Cost-DOH	($164,656)	($181,764)	($185,684)
Cost-Missouri National Guard
Reenlistment Program	($208,333)	($257,500)	($265,225)
Cost-Missouri National Guard
Education Assistance Grants	(UNKNOWN)	(UNKNOWN)	(UNKNOWN)
Loss-General Revenue
Gaming Commission Fund Transfers	$0	$0	($32,016,452)
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND	($372,989)	($439,264)	($32,467,361)
	TO	TO	TO
	(UNKNOWN)	(UNKNOWN)	(UNKNOWN)
FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
(Continued)	(10 Mo.)
MISSOURI NATIONAL GUARD
TRUST FUND
Income-Department of Revenue
Contribution Designations	UNKNOWN	UNKNOWN	UNKNOWN
Cost-Department of Revenue
Telephone Usage Charge and
Script Change	($20,250)	($20,600)	($21,218)
FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
(Continued)	(10 Mo.)
Income-Missouri National Guard
Transfer from Gaming Commission Fund	$3,000,000	$3,000,000	$3,000,000
Income-Missouri National Guard
Transfer from the Veterans' Commission
Capital Improvements Trust Fund	$634,233	$971,349	$1,473,368
Cost-Missouri National Guard
Personal Service (8, 8, 18 FTE)	($185,860)	($231,948)	($495,616)
Fringe Benefits	(52,097)	(65,015)	(138,921)
Expense and Equipment	(396,276)	(674,386)	(838,831)
Total Cost-MNG	($634,233)	($971,349	($1,473,368)
ESTIMATED NET EFFECT ON
MISSOURI NATIONAL GUARD
TRUST FUND	$2,979,750	$2,979,400	$2,978,782
	TO	TO	TO
	UNKNOWN	UNKNOWN	UNKNOWN
FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
(Continued)	(10 Mo.)
VETERANS' COMMISSION CAPITAL
IMPROVEMENT TRUST FUND
Income-Veterans' Commission
Transfers from Gaming
Commission Fund	$0	$0	$3,000,000
Cost-Veterans' Commission
Transfer to Missouri National Guard
Trust Fund-Uniformed Honor Detail Burials	($634,233)	($971,349)	($1,473,368)
Cost-Veterans' Commission
Transfers to City of Kansas City
for restoration, renovation and
maintenance of memorial or museum	($0 to	($0 to	$0
	$5,000,000)	$2,000,000)
Loss-Veterans' Commission
Transfers from Gaming
Commission Fund	($27,746,937)	($27,726,252)	$0
ESTIMATED NET EFFECT ON
VETERANS' COMMISSION CAPITAL
IMPROVEMENT TRUST FUND	($28,381,170 to	($28,697,601 to	$1,526,632
	$33,381,170)	$30,697,601)
EDUCATION FUND FOR EARLY
CHILDHOOD PROGRAMS
Income-Department of Elementary and
Secondary Education (DESE)
Transfer from Gaming
Commission Fund (90%)	$22,272,243	$22,253,627	$23,414,807
Cost-DESE
Grants to School Districts for
Pre-Kindergarten Education and Care
Programs	($22,272,243)	($22,253,627)	($23,414,807)
FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
(Continued)	(10 Mo.)
Income-Department of Social Services (DOS)
Transfer from Gaming
Commission Fund (10%)	$2,474,694	$2,472,625	$2,601,645
Cost-DOS
Reimbursements to Child Care
Facilities for Low Income Served	($2,474,694)	($2,472,625)	($2,601,645)
ESTIMATED NET EFFECT ON
EDUCATION FUND FOR EARLY
CHILDHOOD PROGRAMS	$0	$0	$0
FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
(Continued)	(10 Mo.)
GAMING COMMISSION FUND
Savings-Gaming Commission
Transfers to General Revenue	$0	$0	$32,016,452
Savings-Gaming Commission
Transfers to Veterans' Commission
Capital Improvement Trust Fund	$27,746,937	$27,726,252	$0
Cost-Gaming Commission
Transfers to:
Veterans' Commission
Capital Improvement Trust Fund	$0	$0	($3,000,000)
Missouri National Guard Trust Fund	(3,000,000)	(3,000,000)	(3,000,000)
Education Fund For Early
Childhood Programs	(24,746,937)	(24,726,252)	(26,016,452)
ESTIMATED NET EFFECT ON
GAMING COMMISSION FUND	$0	$0	$0
FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
(Continued)	(10 Mo.)
FEDERAL FUNDS
Loss-Missouri Veterans Commission
Veterans Administration Per Diem,
Aide and Attendance Allowance	($409,915)	($464,425)	($518,935)
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
LOCAL HEALTH DEPARTMENTS
Income-DOH Inspection Contract
Sanitation Inspections	$31,080	$31,080	$31,080
Cost-DOH Inspection Contract
Sanitation Inspections	($31,080)	($31,080)	($31,080)
ESTIMATED NET EFFECT ON
LOCAL HEALTH DEPARTMENTS	$0	$0	$0
SCHOOL DISTRICTS
Income-School Districts
Grants from DESE for
Pre-Kindergarten Education and
Care Programs	$22,272,243	$22,253,627	$23,414,807
Cost-School Districts
Pre-Kindergarten Education and
Care Programs	($22,272,243)	($22,253,627)	($23,414,807)
ESTIMATED NET EFFECT
ON SCHOOL DISTRICTS	$0	$0	$0
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
(Continued)	(10 Mo.)
CITY OF KANSAS CITY
Income-City of Kansas City
Transfers from Veterans' Commission
Capital Improvement Trust Fund	$0 to	$0 to	$0
	$5,000,000	$2,000,000
Cost-City of Kansas City
Improvements to Liberty Memorial and Museum	($0 to	($0 to	$0
	$5,000,000)	$2,000,000)
ESTIMATED NET EFFECT ON
LOCAL GOVERNMENT	$0	$0	$0

FISCAL IMPACT - Small Business

Small business corporations could be fiscally impacted by decreasing their tax refunds by designating tax refunds to the Missouri National Guard Trust Fund.

DESCRIPTION

Missouri National Guard Enlistment Pay/Scholarship Requirements:

Sections 41.435 & 173.239

This proposal would change the calculation of reenlistment pay by allowing the adjutant general to pay one month active base pay (currently allowed to pay one hundred dollars) for each year of reenlistment or extension. Persons who performed other prior military service would not be eligible for such payments. The maximum payment would be three months active base pay, payable in sums of one month active base pay.

The proposal would refer to National Guard scholarships as "education assistance grants". The limits under current law of $500 per semester, $250 per summer semester, and $1,250 per school year would no longer apply. Educational assistance would not exceed the least of actual tuition or tuition charged a Missouri resident at the University of Missouri. National Guard members earning less that a 2.50 grade point average would be placed on probation for educational assistance. If a recipient of educational assistance would cease to be a member while enrolled in school, for any reason except death or disability, the educational assistance would be terminated and repaid.

Certain eligibility requirements for educational assistance would be deleted, including American

DESCRIPTION (Continued)

College Testing Program (ACT) scores of twenty or higher, state of Missouri residency and financial need. Part-time students would qualify for educational assistance.

Veterans Homes/Missouri National Guardsmen: Section 42.105

This proposal would make honorably discharged National Guardsmen eligible to secure admittance to state veterans' homes.

Military Honors/Office of the Adjutant General: Sections 41.214, 41.215, 41.958, & 313.835

This proposal would require the Adjutant General, at the request of the commander of any veterans' organization, military commander or by friends or relatives of any deceased person who had served in the United States armed forces during time of war, or is otherwise entitled to military honors to order a uniformed honor detail or an honor detail from a Missouri state veterans' organization to attend the burial . If the honor detail was provided by a veterans' organization, the organization could bill the Adjutant General's office for the service to be paid from the Missouri National Guard Trust Fund. The amount paid would be determined by the Adjutant General.

The Veterans' Commission could transfer moneys from the Veterans' Commission Capital Improvements Trust Fund to the Missouri National Guard Trust Fund to support uniformed honor detail burials.

It would also establish the Missouri National Guard Trust Fund. The fund would be established to provide funding for honor guards at the burial of qualified veterans. Until the fund exceeds $1 million only half the monies deposited would be available for disbursement. After the fund exceeds $1 million the Adjutant General could distribute funds within the limits of

appropriation. The fund could receive gifts, bequests, grants, and federal funds. The General Assembly could appropriate moneys annually from the Missouri National Guard Trust Fund to the Department of Revenue to offset costs incurred for collecting and transferring funds. Moneys appropriated to DOR would not exceed five percent of the revenues credited to the fund.

In each tax year beginning on or after January 1, 1998, individuals and corporations entitled to a tax refund could designate a minimum of $2 on a single return and $4 on a combined return of the refund due to the Missouri National Guard Trust Fund. A contribution designation would be clearly printed on income tax return forms. Individuals or corporations not entitled to tax refunds could contribute by check. The DOR would transfer monthly all contributions designated by individuals and corporations, less an amount sufficient to cover the cost of collection and

DESCRIPTION (Continued)

handling by the DOR, to the state Treasurer. The names of individuals and corporations who contributed could be supplied to the Adjutant General for the sole purpose of acknowledgement of the gift. Use of the names and addresses for any other purpose would be a class C felony.

Education Fund for Early Childhood Programs Fund: Section 313.835

In each fiscal year, total revenues to the Gaming Commission Fund for the preceding fiscal year would be compared to total expenditures and transfers from the Gaming Commission Fund for the preceding fiscal year. The remaining net proceeds in the Gaming Commission Fund for FY 1998 and prior years would be transferred to the Veterans' Commission Capital Improvements Trust Fund to include fund transfers to the Missouri Veterans' Homes Fund to maintain the solvency of the fund and fund transfers not to exceed five million dollars in any one fiscal year and not to exceed seven million dollars total appropriation to the City of Kansas City for restoration, renovation and maintenance of a World War One memorial or museum. The remaining net proceeds for FY 1999 and each fiscal year thereafter would be distributed as follows: a) $3 million to the Veterans' Commission Capital Improvement Trust Fund; b) $3 million to the Missouri National Guard Trust Fund; and c) all remaining net proceeds in the gaming commission fund would be transferred to the Education Fund for Early Childhood Programs Fund.

It would also remove language which transfers all unencumbered gaming commission funds to general revenue beginning July 1, 2000.

Moneys deposited in the Education Fund for Early Childhood Programs Fund would be used to support activities that prepare children from birth to kindergarten to enter school ready to learn. No less than 80% of the funds would annually be appropriated to DESE for voluntary, school-linked pre-kindergarten education and care programs. DESE would award the funds to school districts as grants. Grants would support children who qualify for free and reduced lunch and for

start-up funds. School districts would provide a business plan demonstrating how the program would be funded from parent fees. The plan would also include state licensure, partner agencies and community input. No less than 10% of the funds would be appropriated to DOS to increase by 20% reimbursements to child care facilities for low income served.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. The proposal could result in an increase in total state revenues, since income tax refunds could be designated to the Missouri National Guard Trust Fund.

SOURCES OF INFORMATION

Coordinating Board For Higher Education

State Treasurer's Office

Department of Elementary and Secondary Education

University of Missouri

Office of the State Public Defender

Office of Prosecution Services

Department of Public Safety - Highway Patrol

Missouri Veterans' Commission

Department of Revenue

Office of Administration - Budget and Planning

Department of Health

Missouri National Guard

Department of Corrections

Department of Social Services

NOT RESPONDING: Gaming Commission

Jeanne Jarrett, CPA

Director

March 2, 1998