COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 1442-01
Bill No.: SB 362
Subject: Education, Elementary and Secondary: Tobacco Products
Type: Original
Date: February 14, 2001
FISCAL SUMMARY
FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
General Revenue | ($319,000,000) | ($162,000,000) | ($164,000,000) |
Missouri Tobacco Settlement Trust | $241,750,000 | $121,500,000 | $123,000,000 |
Total Estimated
Net Effect on All State Funds |
($77,250,000) | ($40,500,000) | ($41,000,000) |
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 |
Local Government | $77,250,000 | $40,500,000 | $41,000,000 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 5 pages.
ASSUMPTION
Officials of the Office of Administration's Division of Accounting and the State Treasurer stated that they could carry out their duties under this proposal with existing resources.
Officials of the Department of Elementary and Secondary Education stated the proposal would not directly affect their agencies.
Oversight assumes that tobacco settlement funds would be deposited into the General Revenue Fund in the absence of this proposal. Oversight also notes that Missouri's tobacco settlement funds have been, thus far, deposited in an escrow fund and assumes that payments for 1998 through 2000 would be deposited at one time and payments for 2001 would also be made during FY 2002; therefore the figure for FY 2002 represents three years worth of estimated payments. (There were no payments in calendar 1999.)
FISCAL IMPACT - State Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
MISSOURI TOBACCO SETTLEMENT TRUST FUND | |||
Income - Tobacco Settlement Revenue | $319,000,000 | $162,000,000 | $164,000,000 |
Cost - Distributions to School Districts | ($77,250,000) | ($40,500,000) | ($41,000,000) |
ESTIMATED NET EFFECT ON MISSOURI TOBACCO SETTLEMENT TRUST FUND | $241,750,000 | $121,500,000 | $123,000,000 |
GENERAL REVENUE FUND | |||
Loss - Tobacco Settlement Revenue | ($319,000,000) | ($162,000,000) | ($164,000,000) |
ESTIMATED NET EFFECT ON GENERAL REVENUE FUND | ($319,000,000) | ($162,000,000) | ($164,000,000) |
FISCAL IMPACT - Local Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
SCHOOL DISTRICTS | |||
Income - Distributions from State | $72,250,000 | $40,500,000 | $41,000,000 |
ESTIMATED NET EFFECT ON SCHOOL DISTRICTS | $72,250,000 | $40,500,000 | $41,000,000 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This proposal would create the "Missouri Settlement Trust Fund". The State Treasurer would deposit all moneys received from tobacco companies in settlement of a dispute between Missouri and tobacco companies. Monies in the Fund and interest earned on those monies would not revert to general revenue at the end of the biennium.
The General Assembly would annually appropriate at least twenty-five percent (25%) of moneys in the Fund to school districts on a per eligible pupil basis, to be used as each district sees fit.
Distributions would be to each district's operating fund and up to fifteen percent (15%) of the money could be placed in the district's capital projects fund. Tobacco settlement distributions placed in the capital projects fund would be exempt from salary compliance requirements set out in section 165.016.
The Commissioner of Administration would maintain data on receipts to the Fund. The Commissioner would update the data at least quarterly and would make the data available on the Internet.
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 affect Total State Revenues.
SOURCES OF INFORMATION
Department of Elementary and Secondary Education
Office of Administration
State Treasurer
Jeanne Jarrett, CPA
Director
February 14, 2001
Year | OA - B&P | Governors | 3% CPI Increase | ||
Association | |||||
1998 | $54,590,426 | $54,590,426 | $54,590,426 | ||
1999 | $0 | $0 | $0 | ||
2000 | $129,451,392 | $145,841,736 | $150,216,988 | ||
2001 | $135,420,621 | $157,485,647 | $167,076,523 | ||
2002 | $162,447,798 | $189,094,295 | $206,623,336 | ||
2003 | $164,044,888 | $190,883,868 | $214,820,705 | ||
2004 | $143,399,390 | $159,313,061 | $184,659,769 | ||
2005 | $144,834,156 | $159,313,061 | $190,203,864 | ||
2006 | $146,278,082 | $159,313,061 | $195,907,271 | ||
2007 | $147,740,792 | $159,313,061 | $201,785,923 | ||
2008 | $164,693,218 | $175,833,051 | $181,916,875 | ||
2009 | $166,353,707 | $175,833,051 | $236,266,871 | ||
2010 | $168,003,541 | $175,833,051 | $243,352,943 | ||
2011 | $169,675,393 | $175,833,051 | $250,667,598 | ||
2012 | $171,378,869 | $175,833,051 | $261,340,664 | ||
2013 | $173,100,158 | $175,833,051 | $265,929,906 | ||
2014 | $174,833,563 | $175,833,051 | $273,895,144 | ||
2015 | $176,602,091 | $175,833,051 | $282,124,130 | ||
2016 | $178,364,609 | $175,833,051 | $290,581,700 | ||
2017 | $180,168,255 | $175,833,051 | $299,303,019 | ||
2018 | $188,424,839 | $182,059,072 | $319,204,171 | ||
2019 | $190,339,585 | $182,059,072 | $328,780,478 | ||
2020 | $192,257,965 | $182,059,072 | $338,629,874 | ||
2021 | $194,207,025 | $182,059,072 | $348,788,770 | ||
2022 | $196,152,138 | $182,059,072 | $359,257,167 | ||
2023 | $198,156,125 | $182,059,072 | $370,035,064 | ||
2024 | $200,180,829 | $182,059,072 | $381,140,667 | ||
2025 | $202,222,663 | $182,059,072 | $392,573,977 | ||
Total | $4,513,322,118 | $4,589,951,302 | $6,989,673,821 |