COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 1589-02
Bill No.: SB 483
Subject: Education, Elementary and Secondary: Teachers' Salaries
Type: Original
Date: March 5, 2001
FISCAL SUMMARY
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
| 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 | ($678,886) | ($739,370) | ($805,239) |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
ASSUMPTION
Officials from the Lottery Commission, Office of State Courts Administrator, Public School Retirement System and Non-Teacher School Employee Retirement System assume the proposal would result in no fiscal impact to the agencies.
Officials from the Department of Elementary and Secondary Education (DESE) assume they could incur additional costs through a likely but indirect result of the bill. The bill would make salaries paid to state operated school teachers less competitive than salaries for those in public school districts. The state operated schools would likely need to increase salaries to retain qualified staff. The amount needed to fund this increase is not known.
To estimate the impact across districts statewide, Department data showing number of teachers newly transferred into a district and an estimated projected salary difference was combined with information from the Missouri State Teachers' Association pertaining to districts offering credit.
FY 02 impact statewide is estimated to be $573,529 x 1.1050 (retirement) = $633,749
FY 03 impact statewide is estimated to be $624,626 x 1.1050 (retirement) = $690,211
FY 04 impact statewide is estimated to be $680,273 x 1.1050 (retirement) = $751,702
The Oversight Division calculated fringe benefits at 18.37% to include retirement, FICA, unemployment and worker's compensation on the salary increases.
| FISCAL IMPACT - State Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
| $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
| SCHOOL DISTRICTS | |||
| Cost - School Districts | |||
| Personal Service | ($573,529) | ($624,626) | ($680,273) |
| Fringe Benefits | ($105,357) | ($114,744) | ($124,966) |
| ESTIMATED NET EFFECT ON SCHOOL DISTRICTS | ($678,886) | ($739,370) | ($805,239) |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
Beginning with the 2001-2002 school year, the proposal would require school districts to offer salary schedule credit to any teacher who has been employed by a public school district for one year or more.
For all school years beginning with contracts offered for school year 2001-2002, teachers accepting employment in a public school, other than the one which employed them the previous year would be offered salary schedule credit according to the following guidelines: up to five years of service for FY 2001-2002, up to six years for FY 2002-2003, up to seven years for FY 2003-2004, up to eight years for FY 2004-2005, up to nine years for FY 2005-2006 and up to ten years for FY 2006-2007 and each year thereafter. School districts could offer credit for service in excess of the guidelines.
The proposal would require that if a court would find that Section 16 of Article X of the
Constitution of Missouri applies to the proposal, any necessary funds would be appropriated from the State Lottery Fund.
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
State Lottery Commission
State Courts Administrator
Public School Retirement System/Non-Teacher School Employee Retirement System
Jeanne Jarrett, CPA
Director
March 2, 2001