COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 1377-01
Bill No.: Perfected SB 353
Subject: Education, Elementary and Secondary: Aid
Type: Original
Date: March 27, 2001
FISCAL SUMMARY
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| General Revenue | ($0 to Unknown) | ($0 to Unknown) | ($0 to Unknown) |
| State School Moneys | $0 | $0 | $0 |
| Total Estimated
Net Effect on All State Funds |
($0 to Unknown) | ($0 to Unknown) | ($0 to Unknown) |
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| School Districts | $0 to Unknown | $0 to Unknown | $0 to Unknown |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
ASSUMPTION
Officials of Department of Elementary and Secondary Education stated that the proposal would allow school districts to propose tax increases which would be phased in over more than one year. Districts would have a voluntary roll back until the increases were fully implemented; however, district tax rates would be higher than those for the previous year and they would still be given credit for reassessment add-ons in the Foundation Formula.
The proposal could increase the cost to fully fund the Foundation Formula; however, officials of the Department of Elementary and Secondary Education have no way of estimating the number of school districts that would propose phased-in tax increases (or whether the voters would approve those increases).
They also noted that calculated levies would not be eliminated due to increased voluntary rollbacks; therefore, the proposal would not ever decrease the cost of fully funding state aid.
| FISCAL IMPACT - State Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
| GENERAL REVENUE FUND | |||
| Cost - Increased Transfers to State School Moneys Fund | ($0 to Unknown) | ($0 to Unknown) | ($0 to Unknown) |
| ESTIMATED NET EFFECT ON GENERAL REVENUE FUND | ($0 to Unknown) | ($0 to Unknown) | ($0 to Unknown) |
| STATE SCHOOL MONEYS FUND | |||
| Income - Increased Transfers from General Revenue Fund | $0 to Unknown | $0 to Unknown | $0 to Unknown |
| Cost - Increased Distributions to School Districts | ($0 to Unknown) | ($0 to Unknown) | ($0 to Unknown) |
| ESTIMATED NET EFFECT ON STATE SCHOOL MONEYS FUND | $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
| SCHOOL DISTRICTS | |||
| Income - Increased State Aid | $0 to Unknown | $0 to Unknown | $0 to Unknown |
| ESTIMATED NET EFFECT ON SCHOOL DISTRICTS | $0 to Unknown | $0 to Unknown | $0 to Unknown |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This proposal would modify the definition of operating levy for school purposes in 163.011(13). Currently, the reassessment add-on must be eliminated in the state aid formula when a school district increases its voluntary rollback. This proposal would allow the add-on to be applied as long as a district's actual tax rate did not decrease. (The actual tax rate means the adjusted tax rate in the Incidental and Teachers Funds, combined.)
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. The proposal would not affect Total State Revenue.
SOURCES OF INFORMATION
Department of Elementary and Secondary Education
Jeanne Jarrett, CPA
Director
March 27, 2001