COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. NO.: 4410-01

BILL NO.: SJR 0054

SUBJECT: Education, Elementary and Secondary: Maximum Levy

TYPE: Original

DATE: February 23, 2000




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
General Revenue ($43,800) UNKNOWN UNKNOWN
State School Moneys $0 $0 $0
Total Estimated

Net Effect on All

State Funds

($43,800) UNKNOWN UNKNOWN



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 (UNKNOWN) (UNKNOWN)

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 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 Secretary of State's Office assume statewide newspaper publication of constitutional amendments costs approximately $1,455 per column inch based on estimates provided by the Missouri Press Service x 3 for multiple printings as required by the Constitution and state statutes = $4,380 per column inch. Estimated total number of inches for this amendment would be 10 inches, which includes the title header and certification paragraph. $4,380 x 10 inches = $43,800. This cost would be in FY 2001.



Based on a response to a similar proposal in the prior year (SJR 26), officials of the Department of Elementary and Secondary Education stated the proposal would not affect the agency, administratively. They did note that state law requires minimum school district tax rates to fully participate in Foundation Formula distributions. Depending upon voter actions to raise rates to the point where districts could fully participate, there could be decreased costs to fully fund the Formula. Oversight assumes that the proposal would not affect the Formula before FY 2002.



FISCAL IMPACT - State Government FY 2001

(10 Mo.)

FY 2002 FY 2003
GENERAL REVENUE FUND
Savings-Department of Elementary and Secondary Education (DESE)
Reduced Transfers to the State School Moneys Fund $0 Unknown Unknown
Cost-Secretary of State's Office
Newspaper Advertisements ($43,800) $0 $0
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND ($43,800) UNKNOWN UNKNOWN
STATE SCHOOL MONEYS FUND
Savings-Department of Elementary and Secondary Education (DESE)
Reduced Distributions to School Districts $0 Unknown Unknown
Loss-Department of Elementary and Secondary Education (DESE)
Reduced Transfers from General Revenue Fund $0 (Unknown) (Unknown)
ESTIMATED NET EFFECT ON STATE SCHOOL MONEYS FUND $0 $0 $0



FISCAL IMPACT - Local Government FY 2001

(10 Mo.)

FY 2002 FY 2003
SCHOOL DISTRICTS
Loss-School Districts
Reduced Property Tax and Reduced Distributions from the Foundation Formula $0 (UNKNOWN) (UNKNOWN)



FISCAL IMPACT - Small Business



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



DESCRIPTION



The proposal would reduce the tax rates school districts could impose without a vote to $1.25 per $100 assessed valuation from $2.75 per $100 assessed valuation.



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 Tax Commission

Secretary of State's Office





Jeanne Jarrett, CPA

Director

February 23, 2000