COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. NO.: 2766-02

BILL NO.: SB 626

SUBJECT: Education, Higher: Community College Funding

TYPE: Original

DATE: January 10, 2000




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
Total Estimated

Net Effect on All

State Funds

$0 $0 $0



ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
Local Government* $0 $0 $0

*A redistribution of funding to community colleges based on enrollment could result.

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.



FISCAL ANALYSIS



ASSUMPTION



Officials from the State Tax Commission assume the proposal would result in no fiscal impact to the agency.



Officials from the Office of Administration - Budget and Planning assume the proposal would result in no fiscal impact to the agency; however, it could result in increased funding to the colleges.



Officials from the Coordinating Board For Higher Education (CBHE) assume the bill specifies a new method of dividing increased appropriations. They assume the proposal does not affect what the levels of increased appropriations could be in the aggregate; although, it could result in fiscal impact, both positive and negative on individual community colleges. Therefore, the proposal could result in a redistribution of funding to community colleges based on enrollment.



FISCAL IMPACT - State Government FY 2001

(10 Mo.)

FY 2002 FY 2003
$0 $0 $0



FISCAL IMPACT - Local Government FY 2001

(10 Mo.)

FY 2002 FY 2003
$0 $0 $0

A redistribution of funding to community colleges based on enrollment could result.



FISCAL IMPACT - Small Business



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















DESCRIPTION



The proposal would change the calculation of state funding for community colleges. Factors in the calculation would include a minimum tax levy and guaranteed per full-time equivalent enrollment payment amount.



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



Coordinating Board For Higher Education

Office of Administration - Budget and Planning

State Tax Commission





Jeanne Jarrett, CPA

Director

January 10, 2000