COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 3402-07

Bill No.: SCS for SB 968

Subject: Education, Elementary and Secondary; Teachers

Type: Original

Date: February 27, 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 4 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 (Unknown - Expected to Exceed $100,000) (Unknown - Expected to Exceed $100,000) (Unknown - Expected to Exceed $100,000)




FISCAL ANALYSIS



ASSUMPTION



Officials from the Department of Elementary and Secondary Education (DESE) indicated this proposal would have no fiscal impact on their agency; however, the proposal could result in significant costs for local school districts. DESE was unable to provide an estimate of the potential costs to school districts.



Officials from the Columbia Public Schools (CPS) assumes scenarios similar to the FY 04 funding cycle and as the district continues to reduce staff, CPS may have to reduce staff after contracts are issued. CPS assumes the fiscal impact could be in the range of $100,000.



In response to the introduced version of this proposal, officials from the Parkway School District indicated this proposal could be very costly to their school district. That cost would vary depending on the number of positions, amount of withholdings, teacher pay, etc.



Officials from the Mexico School District and the Saint Louis Public Schools indicated in a previous response that the costs associated with this proposal would be substantial.





ASSUMPTION (continued)



Responding to an earlier proposal, officials from the Kansas City Missouri School District indicated payment of teachers salaries for those that could be furloughed could be significant.



Oversight assumes that if a minimum of 34 teachers were affected by this proposal, the cost would exceed $100,000.



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
LOCAL SCHOOL DISTRICTS
Cost - Partial payment of contracts of laid off teachers



(Unknown - Expected to Exceed $100,000)


(Unknown - Expected to Exceed $100,000)


(Unknown - Expected to Exceed $100,000)
ESTIMATED NET EFFECT ON LOCAL SCHOOL DISTRICTS

(Unknown - Expected to Exceed $100,000)


(Unknown - Expected to Exceed $100,000)


(Unknown - Expected to Exceed $100,000)


FISCAL IMPACT - Small Business



No direct fiscal impact to small businesses would be expected as a result of this proposal.



DESCRIPTION



This proposal states that if a school district has an unrestricted combined ending fund balance of more than 10% in its teachers' and incidental funds, and in the subsequent fiscal year such district places a contracted teacher on leave of absence after 40 days subsequent to the Governor signing the Elementary and Secondary Education appropriation bill, the district shall pay the affected teacher the greater of their salary for any days worked under the contract, or a sum equal to three thousand dollars.



DESCRIPTION (continued)



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

Kansas City Missouri School District

Columbia Public Schools

Parkway School District

Saint Louis Public Schools

Mexico Public Schools









Mickey Wilson, CPA

Director

February 27, 2004