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 0969 - Revises provisions relating to school desegregation and school funding
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
SUBJECT: Education, Elementary and Secondary: School Funding
TYPE: Original
DATE: March 11, 1998
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS Net Effect on All State Funds
FUND AFFECTED
FY 1999
FY 2000
FY 2001 General Revenue
($1,212,523,593) TO
(UNKNOWN)
($1,212,523,593) TO
(UNKNOWN)
($1,212,523,593) TO
(UNKNOWN) Total Estimated
($1,212,523,593) TO
(UNKNOWN)
($1,212,523,593) TO
(UNKNOWN)
($1,212,523,593) TO
(UNKNOWN)
|
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 | $1,212,523,593 TO UNKNOWN | $1,212,523,593 TO UNKNOWN | $1,212,523,593 TO UNKNOWN |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 5 pages.
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Elementary and Secondary Education (DESE) assume the following:
1) For students in St. Louis, the district where the student resides would receive an additional payment by DESE equal to one-half of the district's state aid for each student. Public school choice incentive payments would be paid by DESE. The fiscal impact is unknown.
2) Any district in St. Louis which experiences an increase in student population as a result of the desegregation settlement would be entitled to state aid for the funding of capital improvements in the district to accommodate returning students. The fiscal impact is unknown.
3) "Eligible pupil" is revised to be based solely on average membership, which means school districts are paid whether the pupils come to school or not. The impact is as follows:
Proposed Line 1 = 880,646 EP x 3.22 x 119,163/100 = $3,379,081,501
Current Line 1 = 854,000 EP x 3.22 x 119,163/100 = $3,276,839,504
Increase 26,646 EP $ 102,241,997
4) Eliminating the deduction for intangible taxes, fines, forfeitures, payments in lieu of taxes, and state assessed railroad and utility on line 3 and 4 of the formula would cost $124,696,339.
5) Removing the .20 from Line 14 would cost:
Proposed Line 14 = 313,450 x 119,163/100 x 2.75 = $1,027,170,165
Current Line 14 = 313,450 x .20 x 119,163/100 x 2.75 = $ 205,434,033
Increase $ 821,736,132
6) Addition of payment for aid to dependent children recipients would add costs. A conservative assumption is that there would be 100,000 AFDC students. 100,000 x .50 x 119,163/100 x 2.75 = $163,849,125.
Officials from the State Tax Commission (TAX) assume the proposal would result in no fiscal impact to them.
ASSUMPTION (continued)
Officials from the Department of Social Services (DOS) assume the data on AFDC children would be needed by DESE to comply with the legislation. The Research and Evaluation section of DOS currently provides data on AFDC children to DESE by school district annually.
DOS assumes this would be a continuing function, and there would be no change in DOS activities as a result of the proposal. Thus, no fiscal impact is estimated for DOS.
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| GENERAL REVENUE FUND | |||
| Cost-DESE | |||
| Public School Choice Incentive Payments, | |||
| Magnet Schools, | |||
| Capital Improvements for Returning Students | (UNKNOWN) | (UNKNOWN) | (UNKNOWN) |
| Foundation Formula | ($1,212,523,593) | ($1,212,523,593) | ($1,212,523,593) |
| Total Cost-DESE | ($1,212,523,593) | ($1,212,523,593) | ($1,212,523,593) |
| TO | TO | TO | |
| (UNKNOWN) | (UNKNOWN) | (UNKNOWN) | |
| FISCAL IMPACT - Local Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| Income-School Districts | |||
| Public School Choice Incentive Payments, | |||
| Magnet Schools, | |||
| Capital Improvements for Returning Students | UNKNOWN | UNKNOWN | UNKNOWN |
| Foundation Formula | $1,212,523,593 | $1,212,523,593 | $1,212,523,593 |
| Total Income-School Districts | $1,212,523,593 | $1,212,523,593 | $1,212,523,593 |
| TO | TO | TO | |
| UNKNOWN | UNKNOWN | UNKNOWN | |
| FISCAL IMPACT - Small Business | |||
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
An urban public school choice program would be established in any school district located in a county with a population in excess of 900,000 persons or in a city not within a county, beginning with the fiscal year following the fiscal year in which a final judgment is made by a federal court disposing all claims involving the state and its officials and appeals. Four regional attendance zones would be established.
A student residing in a district in a program area and attending another district in the program area would be counted as an eligible pupil in the district where the student attends school, and such student would be counted as part of the membership of the district where the student attends
school. In addition to any funds received, for a student residing in a city not within a county and attending school in another district the district where the student resides would receive an additional payment paid by DESE equal to one-half the state aid for each student. The district where the student attends school would receive a public school choice incentive payment from DESE. School districts of attendance would provide pupil transportation, and the school district would receive state transportation aid for reimbursement of 100% of the district's costs to provide transportation.
Any district within a city not within a county could continue to operate and maintain magnet schools designed to foster an integrated educational experience. The district would receive additional state aid per pupil in an amount equal to the costs of educating students attending magnet schools which exceed the district's average per pupil expenditure, for up to 16,000 students.
For any school district within a city not within a county which experiences an increase in student population as a result of a final judgment or resulting from the termination of the urban public school choice program, such school district would be entitled to state aid for funding of capital improvements to accommodate returning students. The district would submit a plan to DESE regarding the costs of capital improvements, and DESE and the district would agree upon the amount of funding necessary for capital improvements. If no agreement would be reached, the parties would select a mutually acceptable arbitrator to rule on disputed issues, whose decision would be final.
"Eligible Pupils" would no longer include the sum of average daily attendance, but would instead include the average of resident full-time students, the full-time equivalent number of part-time students and the full-time equivalent number of summer school pupils. The definition of "membership" would be deleted.
DESCRIPTION (Continued)
"Qualified aid to dependent children recipient" would be resident children five years of age or older and under eighteen years of age enrolled in schools the previous September and for whom aid to dependent children was allowed as certified by the Division of Family Services.
Intangible taxes, fines, forfeitures, escheats and payments in lieu of taxes would no longer be deducted in the school aid formula.
As a categorical add-on in the school aid formula, 20% would no longer be applied to the free and reduced lunch eligible pupil count. Qualified aid to dependent children recipients would become a categorical add-on.
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
Department of Social Services
Jeanne Jarrett, CPA
Director
March 11, 1998