COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. NO.: 3316-01

BILL NO.: SB 754

SUBJECT: Education, Elementary and Secondary: County School Fund

TYPE: Original

DATE: January 21, 2000




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
State School Moneys ($26,000,000 to $30,000,000) ($26,000,000 to $30,000,000) ($26,000,000 to $30,000,000)
Total Estimated

Net Effect on All

State Funds

($26,000,000 to $30,000,000) ($26,000,000 to $30,000,000) ($26,000,000 to $30,000,000)



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 $26,000,000 to $30,000,000 $26,000,000 to $30,000,000 $26,000,000 to $30,000,000

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.

FISCAL ANALYSIS



ASSUMPTION



Officials from the Department of Elementary and Secondary Education (DESE) assume the proposal could potentially increase the cost of the basic state aid formula by approximately $26 to $30 million. Currently, the revenue from the county school fund as placed in the Teachers Fund is a deduction from the state cost (Line 3 of the formula). If local boards have the option of placing the money in the Capital Projects Fund, it is anticipated that most boards will choose to place the money in the Capital Projects Fund so that equipment can be purchased and renovations or additions to the physical plant can be made. Therefore, if the county school fund money is placed in the Capital Projects Fund by the district, it would not be a deduction in the basic state aid formula and the state would have to replace that money if a proration factor of 1.00 is maintained. That amount in FY 2000 is $26 million and generally has been between $26 to $30 million.



FISCAL IMPACT - State Government FY 2001

(10 Mo.)

FY 2002 FY 2003
STATE SCHOOL MONEYS FUND
Cost-Department of Elementary and Secondary Education (DESE)
State Aid ($26,000,000 to ($26,000,000 to ($26,000,000 to
$30,000,000) $30,000,000) $30,000,000)



FISCAL IMPACT - Local Government FY 2001

(10 Mo.)

FY 2002 FY 2003
SCHOOL DISTRICTS
Income-School Districts
State Aid $26,000,000 to $26,000,000 to $26,000,000 to
$30,000,000 $30,000,000 $30,000,000



FISCAL IMPACT - Small Business



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







DESCRIPTION



The proposal would require moneys received from the county school fund be placed to the credit of the fund designated by the school board, rather than the Teachers' Fund.



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





Jeanne Jarrett, CPA

Director

January 21, 2000