COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 2745-01
Bill No.: SB 811
Subject: Teachers; Education, Elementary and Secondary; Contracts and Contractors; Salaries
Type: Original
Date: February 4, 2002
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 | ($901,323) | ($981,540) | ($1,068,897) |
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, DESE 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 $765,845
FY 03 impact statewide is estimated to be $834,005
FY 04 impact statewide is estimated to be $908,231
The Oversight Division calculated fringe benefits at 17.69% 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 | ($765,845) | ($834,005) | ($908,231) |
| Fringe Benefits | ($135,478) | ($147,535) | ($160,666) |
| ESTIMATED NET EFFECT ON SCHOOL DISTRICTS | ($901,323) | ($981,540) | ($1,068,897) |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This proposed legislation requires that a minimum level of salary schedule credit be offered to public school teachers who change employment from one Missouri school district to another as specified in the proposal. Beginning with the 2002-2003 school year, teachers who have been employed for one year or more shall be offered credit for each year of service up to five years, with annual increases thereafter through the 2007-2008 school year. School districts may offer credit in excess of the schedule.
The proposal also specifies that in the event the courts declare that Section 16 of Article X of the Missouri Constitution applies to any provision of Section 168.090, RSMo (Section 168.095), moneys necessary to fund this section shall 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.
SOURCES OF INFORMATION
Department of Elementary and Secondary Education
State Lottery Commission
Office of State Courts Administrator
Public School Retirement System
Non-Teacher School Employee Retirement System
Mickey Wilson, CPA
Acting Director
February 4, 2001