COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 3141-03

Bill No.: SCS for SB 755

Subject: Education, Higher

Type: Original

Date: February 25, 2004




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2005 FY 2006 FY 2007
Total Estimated

Net Effect on

General Revenue

Fund

$0 $0 $0



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Total Estimated

Net Effect on All

State Funds

$0 $0 $0



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 5 pages.











ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Local Government $0 $0 $0




FISCAL ANALYSIS



ASSUMPTIONS



Name Change for Missouri Western State College



Officials from the Department of Higher Education (DHE) assume this legislation has no direct fiscal impact on the DHE. However, it could have an impact on the higher education institution included due to costs incurred with changes in signage, stationary, and other related changes, including costs associated with prospective changes in institutional mission.



In response to a previous version of this proposal, officials from Missouri Western State College assume this proposal would have no impact on their organization. They stated that with proper planning, the change could be done at minimal cost and would not result in the need for additional state appropriations.



In response to a similar proposal, officials from the University of Missouri assumed there would be no fiscal impact on their organization.





ASSUMPTIONS (continued)



Oversight assumes this proposal would result in minimal one-time costs to Missouri Western State College for signage, stationary, and other related changes. Oversight further assumes there would be no permanent increase in operating costs as a result of this proposal, and that any costs associated with prospective changes in institutional mission and additional degree programs would be addressed through the normal state budget process for higher education.



Prohibition of A+Reimbursements to Four-year Institutions



Officials from the Department of Higher Education (CBH) assume this proposal would have no impact on their organization.



Officials from the Metropolitan Community Colleges assume this proposal could result in losses to the community colleges if students enroll in vocation and technical schools instead.



Officials from the Department of Elementary and Secondary Education (DESE) assume this proposal would have no impact on their organization nor any fiscal impact on the state. DESE noted that during FY 2002, two four-year institutions had agreements with a community college and a technical school, respectively, for courses not available at the two-year institutions. Total A+ reimbursements related to these agreements were $625,804. DESE assumes that if these agreements were prohibited, the A+ funds would be awarded to other qualified students.



Officials from Linn State Technical College, Moberly Area Community College, North Central Missouri College, State Fair Community College, and St. Louis Community College System did not respond to our request for information.





FISCAL IMPACT - State Government FY 2005

(10 Mo.)

FY 2006 FY 2007
$0 $0 $0
FISCAL IMPACT - Local Government FY 2005

(10 Mo.)

FY 2006 FY 2007
$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 would change the name of Missouri Western State College to Missouri Western State University and change its mission to a statewide institution of applied learning. Associate degree programs would be discontinued unless continuation is approved by the Coordinating Board for Higher Education, and baccalaureate and graduate degree programs would be permitted. The regional governing body would be replaced by a board selected on a statewide basis. The proposal would also eliminate the minimum age requirement for admission to the University of Missouri. Reimbursements to four-year institutions from the A+ Schools program based on cooperative agreements with other institutions would be prohibited; A+ reimbursements would be limited to students exclusively attending community colleges and vocation and technical schools.



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



Missouri Western State College

Department of Higher Education

Department of Elementary and Secondary Education

Metropolitan Community Colleges



NOT RESPONDING



Linn State Technical College

Moberly Area Community College

North Central Missouri College

State Fair Community College

St. Louis Community College System







Mickey Wilson, CPA

Director

February 25, 2004