COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 3393-01
Bill No.: SB 969
Subject: Education, Elementary and Secondary; Teachers
Type: Original
Date: January 20, 2004
FISCAL SUMMARY
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| General Revenue | ($3,947,351) | ($3,947,351) | ($3,947,351) |
| Total Estimated
Net Effect on General Revenue Fund |
($3,947,351) | ($3,947,351) | ($3,947,351) |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| State School Moneys Fund* | $0 | $0 | $0 |
| Total Estimated
Net Effect on All State Funds* |
$0 | $0 | $0 |
*Offsetting Transfers In and Out total $3,947,351
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Local Government* | $0 | $0 | $0 |
* Offsetting Transfers In and Disbursements total $3,947,351
ASSUMPTION
Officials from the Office of Administration - Division of Budget and Planning (BAP) stated the proposal should not result in additional costs or savings to BAP. The proposal could result in general revenue costs of approximately $4 million to fully fund the career ladder program.
Officials from the Department of Elementary and Secondary Education (DESE) stated the
FY05 projected need to pay the 2003-04 Career Ladder obligations is $39,473,501. Because the foundation formula proration is less than 1.00 and the Career Ladder payment cannot currently be paid at a higher percentage (proration) than the foundation formula, the FY05 budget request for Career Ladder is $35,526,150. Paying 100% of the Career Ladder obligation increases the state cost $3,947,351 above the FY05 budget request.
| FISCAL IMPACT - State Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| GENERAL REVENUE FUND
Cost - Department of Elementary and Secondary Education - Career Ladder |
($3,947,351) |
($3,947,351) |
($3,957,351) |
| ESTIMATED NET EFFECT ON GENERAL REVENUE FUND |
($3,947,351) |
($3,947,351) |
($3,957,351) |
| FISCAL IMPACT - State Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| STATE SCHOOL MONEYS FUND | |||
| Transfer In - General Revenue | $3,947,351 | $39,947,351 | $3,947,351 |
| Transfer Out - School Districts - Career Ladder Payments | ($3,947,351) | ($3,947,351) | ($3,947,351) |
| ESTIMATED NET EFFECT ON STATE SCHOOL MONEYS FUND |
$0 |
$0 |
$0 |
| FISCAL IMPACT - Local Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| SCHOOL DISTRICTS | |||
| Transfer In - State School Moneys Fund - Career Ladder Payments |
$3,947,351 |
$3,947,351 |
$3,947,351 |
| Cost - Career Ladder Payments to teachers |
($3,947,351) |
($3,947,351) |
($3,947,351) |
| 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 removes the proration factor for the Career Ladder program.
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
Office of Administration
Division of Budget and Planning
Mickey Wilson, CPA
Director
January 20, 2004