SB 0523 - Fiscal Note

Fiscal Note - SB 0523 - Provides state aid to school districts educating certain disabled students

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 2198-01

BILL NO.: SB 523

SUBJECT: Education, Elementary and Secondary: Disabled Students

TYPE: Original

DATE: March 22, 1999

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
General Revenue	($60,503,158)	($62,318,253)	($64,187,801)
Total Estimated Net Effect on All State Funds	($60,503,158)	($62,318,253)	($64,187,801)

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	$60,503,158	$62,318,253	$64,187,801

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials from the Office of Administration and State Treasurer's Office assume the proposal would result in no fiscal impact to the agencies.

Officials from the Department of Elementary and Secondary Education (DESE) state the bill stipulates that the "proportionate share of state aid appropriated to the Missouri School for the Blind (MSB) and the Missouri School for the Deaf (MSD) shall be distributed to each school district educating each child eligible to attend the MSD or the MSB." The proportionate share and estimated distributions are calculated below.

[a] Per pupil cost for blind or partially-seeing students was derived from MSB information:

$4,969,349 (FY99 MSB allocation) / 112 (December, 1998 child count) = $44,369;

[b] Per pupil cost for deaf and hard-of-hearing was derived from MSD information:

$5,842,240 (FY99 MSD allocation) / 138 (December, 1998 child count) =$42,335;

[c] Partially Sighted and Blind cost calculations:

Partially sighted child count 212

Blind child count 257

Less MSB child count (112)

Net "blind" child count 357

Cost per student X $44,369

School district distributions $15,839,733

[d] Hard of hearing cost calculations:

Hard of hearing child count 760

Deaf child count 433

Less MSD child count (138)

Net "deaf" child count 1,055

Cost per student X $42,335

School district distributions $44,663,425

[e] Total cost $15,839,733 + $44,663,425 = $60,503,158 for FY 2000

[f] 3% inflation factor used to estimate FY 2001 and FY 2002

FY 2001 $62,318,253

FY 2002 $64,187,801

ASSUMPTION (continued)

While these distributions would be additional income to school districts, this income would go to offset additional costs associated with educating this population of children. However, it is believed that actual costs to the school districts would in almost all cases be less than MSD and MSB costs because actual costs to the districts would not include consideration of expenditures for residential costs and other non-day school service costs that the MSD and MSD would incur.

School district cost calculations (FY 2000):

[a] The current estimated annual expenditure per eligible pupil is approximately $5,300;

[b] The current estimated annual expenditure per eligible special education pupil is assumed to be twice the amount of the non-special education pupil: $5,300 X 2 = $10,600;

[c] Estimated number MSD/MSB eligible pupils being educated in the school district:

1,412 (357 blind; 1,055 deaf)

X $5,300

$7,483,600

[d] 3% inflation factor used to estimate FY 2001 and FY 2002 costs.

FY 2001 $7,708,108

FY 2002 $7,939,351

Estimated Net Gain for School Districts

FY 2000 $53,019,558

FY 2001 $54,610,145

FY 2002 $56,248,450

Because the costs to school districts included by DESE are current costs, the Oversight Division has excluded them from the fiscal impact resulting from the proposed legislation.

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
GENERAL REVENUE FUND
Cost-Department of Elementary and
Secondary Education
Distributions for blind and deaf students	($60,503,158)	($62,318,253)	($64,187,801)
FISCAL IMPACT - Local Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
SCHOOL DISTRICTS
Income-School Districts
Distributions for blind and deaf students	$60,503,158	$62,318,253	$64,187,801
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.

DESCRIPTION

The proportionate per pupil share of state aid appropriated to the Missouri School for the Deaf and to the Missouri School for the Blind would be distributed to each school district educating each child eligible to attend the Missouri School for the Deaf or the Missouri School for the Blind which would elect to attend school in the district.

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

March 22, 1999