SB 0390 - Fiscal Note

Fiscal Note - SB 0390 - Revises MOSTARS Higher Education Savings Program

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 1614-01

BILL NO.: SB 390

SUBJECT: Education, Elementary and Secondary: Minority Teaching Scholarships

TYPE: Original

DATE: February 19, 1999

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
General Revenue	($875,000)	($875,000)	($875,000)
Total Estimated Net Effect on All State Funds	($875,000)	($875,000)	($875,000)

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
None	$0	$0	$0
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 3 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials from the Coordinating Board For Higher Education (CBHE) assume there would be no fiscal impact on the CBHE since the program is administered by the Department of Elementary and Secondary Education. They assume increasing the potential number and value of minority teaching scholarships would not create a fiscal impact because the program is subject to appropriations.

Officials from the Department of Elementary and Secondary Education (DESE) assume no additional administrative impact would result to DESE. They assume no additional cost to school districts would result. DESE officials calculated the fiscal impact from scholarships as follows:

Cost estimate assumptions:

a) 400 additional scholarships x $2,000 = $800,000

b) Special education track students = 15% x 500 = 75

c) Additional scholarships for students specializing in special education = 75 x $1,000 = $75,000

d) Total estimated cost = $875,000

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
GENERAL REVENUE FUND
Cost-Department of Elementary and
Secondary Education (DESE)
Scholarships	($875,000)	($875,000)	($875,000)
FISCAL IMPACT - Local Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
	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 increase the number of minority student teaching scholarships from one hundred to five hundred. The scholarship amounts would remain at two thousand dollars but would be increased to three thousand dollars if the student would enter the special education field.

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

Coordinating Board For Higher Education

Jeanne Jarrett, CPA

Director

February 19, 1999