COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 0074-02
Bill No.: SB 41
Subject: Education, Elementary and Secondary; Elementary and Secondary Education Dept; Teachers
Type: Original
Date: January 17, 2003
FISCAL SUMMARY
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| General Revenue Fund | ($1,770,000) | ($3,248,000) to ($3,540,000) | ($4,150,000) to ($5,310,000) |
| Total Estimated
Net Effect on General Revenue Fund |
($1,770,000) | ($3,248,000) to ($3,540,000) | ($4,150,000) to ($5,310,000) |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on Other State Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 5 pages.
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| School Districts | $0 | $0 | $0 |
ASSUMPTION
Officials from the Secretary of State's Office (SOS) assumed the rules, regulations and forms issued by the state board of education could require as many as 4 pages in the Code of State Regulations. For any given rule, roughly half again as many pages are published in the Missouri Register as in the Code because cost statements, fiscal notes and the like are not repeated in the Code. These costs are estimated. The estimated cost of a page in the Missouri Register is $23. The estimated cost of a page in the Code of State Regulations is $27. The actual costs could be more or less the SOS's estimated cost of $246 for FY 2004. The impact of this legislation in future years is unknown and depends upon the frequency and length of rules, filed, amended, rescinded or withdrawn.
Oversight assumes the SOS could absorb the costs of printing and distributing regulations related to this proposal. If multiple bills pass which require the printing and distribution of regulations at substantial costs, the SOS could request funding through the appropriation process. Any decisions to raise fees to defray costs would likely be made in subsequent fiscal years.
| Officials from the Department of Elementary and Secondary Education (DESE) state that a
signing bonus of $2,000 would be given each year for five years to each newly-hired teacher in
rural school districts. DESE stated that the proposed legislation does not clearly indicate
whether DESE would request state funds that it would then pay the district or if the district is to
ASSUMPTION (continued)
pay the bonus from its own resources. The proposal indicates the State Board shall establish a program but makes no mention of a funding source; DESE assumes they would request state funds that would be paid to the district. Last year, "rural" districts employed 885 teachers with 1 year of district experience, 739 with 2 years, 451 with 3 years, 398 with 4 years, and 285 with 5 years. Based on this data, costs could be estimated as follows: |
Option 1 Option 2
Assumes the number of teacher returning to Assumes all teachers return to employment
employment in subsequent years is equal to in subsequent years and that rural districts
FY 2002 data and that rural districts will will hire the same number of new teachers
hire the same number of new teachers as were as were hired during FY 2002.
hired during FY 2002.
FY 2004 FY 2004
2,000 x 885 newly hired = $1,770,000 $2,000 x 885 newly hired = $1,770,000
FY 2005 FY 2005
739 2nd year from 2004 885 2nd year from 2004
885 newly hired 885 newly hired
$2,000 x 1,624 = $3,248,000 $2,000 x 1,770 = $3,540,000
FY 2006 FY 2006
451 3rd year from 2004 885 3rd year from 2004
739 2nd year from 2005 885 2nd year from 2005
885 newly hired 885 newly hired
$2,000 x 2,075 = $4,150,000 $2,000 x 2,655 = $5,310,000
Using the same assumptions for the full five year period, costs for FY 2007 could range from $4,946,000 to $7,080,000 and costs for FY 2008 could range from $5,522,000 to $8,850,000.
| FISCAL IMPACT - State Government | FY 2004 | FY 2005 | FY 2006 |
| GENERAL REVENUE | |||
| Transfer Out - Dept of Elementary and Secondary Education | |||
|
Rural teacher signing bonuses |
($1,770,000) |
($3,248,000) to ($3,540,000) | ($4,150,000) to ($5,310,000) |
| FISCAL IMPACT - Local Government | FY 2004 | FY 2005 | FY 2006 |
| LOCAL SCHOOL DISTRICTS | |||
| Transfer In - Rural teacher signing bonuses |
$1,770,000 |
$3,248,000 to $3,540,000 | $4,150,000 to $5,310,000 |
|
Cost - Teacher signing bonuses |
($1,770,000) |
($3,248,000) to ($3,540,000) | ($4,150,000) to ($5,310,000) |
| ESTIMATED NET EFFECT ON SCHOOL DISTRICTS |
$0 |
$0 |
$0 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This proposal creates a program of signing bonuses for newly- hired teachers in rural school districts. An annual signing bonus of $2,000 will be given for a period of up to five consecutive years, provided the teacher is employed in the current year with a rural school district in a full-time teaching position.
The proposal defines a "rural school district" as any school district which contains any part of either a third or fourth class county, has a current assessed valuation which is less than thirty million dollars, and has a current membership which is less than or equal to six hundred pupils.
A "newly-hired teacher" must be employed by the district as a full time teacher for the first time in the current school year, beginning no later than February first. Neither a substitute teacher nor DESCRIPTION (continued)
any teacher who has been a "newly-hired teacher" in a previous school year is eligible to be a "newly- hired teacher".
The signing bonus shall be in addition to the base salary to which the teacher would otherwise be entitled. Teachers receiving the signing bonus shall receive any pay and benefits received by teachers of similar training, experience, and duties. The signing bonus shall be provided no later than one month following the commencement of employment as a newly-hired teacher.
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
Office of Secretary of State
Administrative Rules Division
Department of Elementary and Secondary Education
Mickey Wilson, CPA
Director
January 17, 2003