COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 2686-01
BILL NO.: SB 591
SUBJECT: Education, Elementary and Secondary: Year 2000 Classroom Fund
TYPE: Original
DATE: January 11, 2000
FISCAL SUMMARY
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| General Revenue | ($31,442,816) | ($64,772,201) | ($100,073,051) |
| Year 2000 Classroom | $0 | $0 | $0 |
| Total Estimated
Net Effect on All State Funds |
($31,442,816) | ($64,772,201) | ($100,073,051) |
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Local Government | $31,442,816 | $64,772,201 | $100,073,051 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
ASSUMPTION
Officials from the Gaming Commission and State Treasurer's Office assume the proposal would result in no fiscal impact to the agencies.
Officials from the Office of Administration - Budget and Planning estimate that in FY 2001 $187.2 million is transferred from the Gaming Proceeds for Education Fund to the State Schools Moneys Fund. They assume no growth for the Gaming Proceeds for Education. Therefore, they estimate the following transfers to the Year 2000 Classroom Fund:
FY 2001 (20%) $37.4 million
FY 2002 (40%) $74.9 million
FY 2003 (60%) $112.3 million
FY 2004 (80%) $149.8 million
FY 2005 (100%) $187.2 million
Officials from Department of Elementary and Secondary Education (DESE) assume the following:
Gaming proceeds for education
Gaming proceeds for education amounts used in this fiscal note response begin with the FY 2001 budget request. A 3% per year growth factor in this amount is assumed for FY 2002 and FY 2003.
FY 2001 $157,214,081 -- 20% will go to Year 2000 Classroom Fund = $31,442,816
FY 2002 $161,930,503 -- 40% will go to Year 2000 Classroom Fund = $64,772,201
FY 2003 $166,788,418 -- 60% will go to Year 2000 Classroom Fund = $100,073,051
GR Impact
Funds diverted from the SSMF to the Classroom Fund will be replaced by an equal transfer from the General Fund into the SSMF.
IT Impact
Minimal programming costs will be incurred to alter the existing school finance system. These costs are estimated to be $1,000 to $2,000 ($1,500 mid-point selected).
DESE officials assume there would be a net increase in moneys going out to school districts of $31,442,816 in FY 2001; $64,772,201 in FY 2002; and $100,073,051 in FY 2003. These moneys could be used by districts for school construction, renovation or leasing; teacher recruitment, retention, salaries or professional development; or technology enhancements, textbooks or instructional materials.
| FISCAL IMPACT - State Government | FY 2001
(10 Mo.) |
FY 2002 | FY 2003 |
| GENERAL REVENUE FUND | |||
| Cost-Department of Elementary and Secondary Education (DESE) | |||
| Transfer to the SSMF | ($31,442,816) | ($64,772,201) | ($100,073,051) |
| YEAR 2000 CLASSROOM FUND | |||
| Income-Department of Elementary and Secondary Education (DESE) | |||
| Transfer from Gaming Proceeds | $31,442,816 | $64,772,201 | $100,073,051 |
| For Education Fund | |||
| Cost-Department of Elementary and Secondary Education (DESE) | |||
| Distributions to School Districts | ($31,442,816) | ($64,772,201) | ($100,073,051) |
| ESTIMATED NET EFFECT ON | |||
| YEAR 2000 CLASSROOM FUND | $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 2001
(10 Mo.) |
FY 2002 | FY 2003 |
| SCHOOL DISTRICTS | |||
| Income-School Districts | |||
| Distributions from Year 2000 Classroom | |||
| Fund | $31,442,816 | $64,772,201 | $100,073,051 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
Excursion gambling boat proceeds deposited in the Gaming Proceeds for Education Fund in excess of the amount transferred to the School District Bond Fund are currently transferred to the State School Moneys Fund. The proposal would transfer these moneys as follows: 1) for FY 2001, 20% to the Year 2000 Classroom Fund and 80% to the State School Moneys Fund; 2) for FY 2002, 40% to the Year 2000 Classroom Fund and 60% to the State School Moneys Fund; 3) for FY 2003, 60% Year 2000 Classroom Fund and 40% to the State School Moneys Fund; 4) for FY 2004, 80% to the Year 2000 Classroom Fund and 20% to the State School Moneys Fund; and for FY 2005, 100% to the Year 2000 Classroom Fund.
The amount transferred to the Year 2000 Classroom Fund would be replaced in the State School Moneys Fund from General Revenue.
For FY 2001 and each subsequent fiscal year, the Year 2000 Classroom Fund would be distributed to each school district on a per eligible pupil basis. The moneys could be used by the districts for school construction, renovation or leasing; teacher recruitment, retention, salaries or professional development; or technology enhancements, textbooks or instructional materials.
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
State Treasurer's Office
Office of Administration - Budget and Planning
Gaming Commission
Jeanne Jarrett, CPA
Director
January 11, 2000