COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 3037-01
Bill No.: SB 788
Subject: Gambling; Education, Elementary and Secondary; Taxation and Revenue - General.
Type: Original
Date: February 4, 2002
FISCAL SUMMARY
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| General Revenue | ($35,950,200) | ($74,141,412) | ($114,674,482) |
| Year 2000 Classroom | $0 | $0 | $0 |
| State School Money | $0 | $0 | $0 |
| Total Estimated
Net Effect on All State Funds |
($35,950,200) | ($74,141,412) | ($114,674,482) |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Local Government | $35,950,200 | $74,141,412 | $114,674,482 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 5 pages.
ASSUMPTION
Officials from the Office of the State Treasurer, Department of Public Safety - Missouri Gaming Commission, and the Department of Revenue assume this proposal will not fiscally impact their respective agencies.
Officials from Department of Elementary and Secondary Education (DESE) assume this
proposal would take the gaming money currently used in funding the foundation formula and
instead distribute that money on a per eligible pupil basis through a new fund labeled "Year 2000
Classroom Fund" (CF) beginning with FY 03.
State School Moneys Fund (SSMF) is estimated to be $186,751,000. This amount divided by a
projected eligible pupil number of 880,000 equals approximately $212 per eligible pupil. This would be increased money to school districts if the legislature replaces this source of money for the foundation formula with General Revenue as required in the proposal in Section 160.534.3. The proposal would eliminate the transfer to the State School Moneys Fund over 5 years. The
increased state costs would be equal to the amount of gaming proceeds transferred to the State School Moneys Fund for the state aid formula, which is approximately $186,751,000 in FY 02.
For FY2002 the gaming proceeds in the Gaming Proceeds for Education Fund transferred to the
GR Impact
Funds diverted from the State School Moneys Fund (SSMF) to the Classroom Fund will be replaced by an equal transfer from the General Fund into the SSMF.
Officials from the Office of Administration - Budget and Planning (BAP) did not respond to the request for fiscal impact of this legislation. Based on the BAP response on similar legislation from last year, Oversight assumes the following distribution to the Year 2000 Classroom Fund, including a 3% inflation factor for FY 2004 and FY 2005..
FY 2003 FY 2004 FY 2005
Estimated Gaming Proceeds for Education
Fund revenue $186,751,000 $192,353,530 $198,124,136
Minus School District Bond Fund transfer ($ 7,000,000) ($ 7,000,000) ($ 7,000,000)
Net available to State School Money Fund $179,751,000 $185,353,530 $191,124,136
Allocation percentages:
Percent to State School Money Fund 80% 60% 40%
Percent to Year 2000 Classroom Fund 20% 40% 60%
ASSUMPTION (continued)
Distributions:
State School Money Fund $143,800,800 $111,212,118 $ 76,449,654
Year 2000 Classroom Fund $ 35,950,200 $ 74,141,412 $ 114,674,482
General Revenue would pick-up $ 35,950,200 $ 74,141,412 $ 114,674,482
| FISCAL IMPACT - State Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| GENERAL REVENUE FUND | |||
| Costs - Department of Elementary and Secondary Education (DESE) | |||
| Transfer to the SSMF | ($35,950,200) | ($74,141,412) | ($114,674,482) |
| YEAR 2000 CLASSROOM FUND | |||
| Income - DESE | |||
| Transfer from Gaming Proceeds for Education Fund | $35,950,200 | $74,141,412 | $114,674,482 |
| Costs - DESE | |||
| Distributions to School Districts | ($35,950,200) | ($74,141,412) | $114,674,482) |
| ESTIMATED NET EFFECT ON
YEAR 2000 CLASSROOM FUND |
$0 |
$0 |
$0 |
| STATE SCHOOL MONEYS FUND | |||
| Loss - reduction in transfer from Gaming Proceeds for Education Fund |
($35,950,200) |
($74,141,412) |
($114,674,482) |
| Income - Replacement transfer in from General Revenue Fund |
$35,950,200 |
$74,141,412 |
$114,674,482 |
| ESTIMATED NET EFFECT ON
STATE SCHOOL MONEYS FUND |
$0 |
$0 |
$0 |
| FISCAL IMPACT - Local Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| SCHOOL DISTRICTS | |||
| Income - School Districts | |||
| Distributions from Year 2000 Classroom Fund |
$35,950,200 |
$74,141,412 |
$114,674,482 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This proposal revises the distribution of riverboat gaming proceeds. Currently, any gaming proceeds in excess of the amount transferred to the School District Bond Fund is transferred to the State School Moneys Fund and used to fund the basic state school aid formula.
The proposal revises the distribution to place the riverboat gaming proceeds which now go to the State School Moneys Fund. It transfers a portion of the proceeds to the Year 2000 Classroom Fund, which is created by the proposed legislation. The change is implemented over a five year period beginning in FY 2003, with 20% increases each year in the portion transferred to the Year 2000 Classroom Fund, until 100% of such funds are transferred in FY 2007. For FY 2008 and thereafter, the distribution reverts to transferring all such funds to the State School Moneys Fund. Transfers to the School District Bond Fund are not affected by this proposal.
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 Public Safety
Missouri Gaming Commission
Department of Revenue
Office of State Treasurer
Department of Elementary and Secondary Education
Not responding
Office of Administration
Division of Budget and Planning
Mickey Wilson, CPA
Acting Director
February 4, 2002