COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 0952-03

Bill No.: Perfected SS for SCS for SB 264

Subject: Education, Elementary and Secondary; Teachers

Type: Original

Date: March 18, 2003



FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on

General Revenue

Fund

 $0 $0 $0



ESTIMATED NET EFFECT ON OTHER STATE FUNDS
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 3 pages.

















ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on All

Federal Funds

 $0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Local Government $0 $0 $0




FISCAL ANALYSIS



ASSUMPTION



Officials from the Department of Elementary and Secondary Education (DESE) stated there would be no cost or savings to their agency as a result of this proposal. DESE indicated that this proposal would give flexibility to local boards of education to adjust budgets as necessary to cope with decreasing foundation formula revenue.



FISCAL IMPACT - State Government FY 2004 FY 2005 FY 2006
$0 $0 $0




FISCAL IMPACT - Local Government FY 2004 FY 2005 FY 2006
$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 outlines conditions wherein a school district shall not be obligated to comply with the salary compliance provisions of Section 165.016, RSMo.



The provisions of this proposal shall not apply to any district:



1) Receiving state aid pursuant to subsection 6 of section 163.031, RSMo, based on its 1992-93 payment amount per eligible pupil, which is less than 50% of the statewide average payment amount per eligible pupil paid during the previous year.



2) That has unrestricted fund balances the combined incidental and teacher funds on June 30th of the preceding year which are equal to or less than seventeen percent of the combined expenditures for the preceding year from these fund in any year in which state funds distributed for Section 163.631, RSMO, lines 1 to 10 plus line 14 is 96% or less than such state funds distributed in fiscal year 2002;



3) With ten percent or more of its assessed valuation that is owned by one person or corporation as commercial or personal property who is delinquent in property tax payment; and



4) With unrestricted fund balances in the combined incidental and teacher funds on June 30th of the preceding year which are equal to or less than one half of the local property tax revenue for the previous year.



This proposal has an emergency clause.

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





Mickey Wilson, CPA

Director

March 18, 2003