COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. NO.: 3975-02

BILL NO.: SCS For SB 926

SUBJECT: Education, Elementary and Secondary: State Aid

TYPE: Original

DATE: March 6, 2000



FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
State School Moneys* ($11,500,000) ($11,500,000) ($11,500,000)
Total Estimated

Net Effect on All

State Funds

 ($11,500,000) ($11,500,000) ($11,500,000)

*Maximum cost estimated by DESE.

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
School Districts $11,500,000 $11,500,000 $11,500,000

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 Line 10 amount for FY 2001 is not available. Therefore, the percentage change can not be estimated by DESE. DESE officials estimated the maximum cost based on the following assumptions:

(a) All FY 2000 hold harmless districts would receive the maximum GTB increase in FY 2001 which is 6.63%;

(b) All hold harmless districts would have the same number of payment eligible pupils in FY 2001 as in FY 2000.

Based on these assumptions, the maximum increased cost is estimated to be $11.5 million.

Note: The actual cost would be somewhat less because not all FY 2000 hold harmless districts would receive the full 6.63% increase in FY 2001 because of the Line 10 increase.



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* ($11,500,000) ($11,500,000) ($11,500,000)



*Maximum cost estimated by DESE.



FISCAL IMPACT - Local Government FY 2001

(10 Mo.)

 FY 2002 FY 2003
SCHOOL DISTRICTS
Income-School Districts
State Aid $11,500,000 $11,500,000 $11,500,000



FISCAL IMPACT - Small Business



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









DESCRIPTION



The proposal would revise state school aid to "hold harmless" districts.



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

March 6, 2000