COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION


FISCAL NOTE


L.R. No.:         3814-01

Bill No.:          HB 1704

Subject:           Education, Elementary and Secondary: Elementary and Secondary Education Department

Type:              Original

Date:               February 8, 2008




 

Bill Summary:           Increases a specific appropriation amount for small school districts.



FISCAL SUMMARY


ESTIMATED NET EFFECT ON GENERAL REVENUE FUND

FUND AFFECTED

FY 2009

FY 2010

FY 2011

General Revenue

($5,000,000)

($5,000,000)

($5,000,000)

 

 

 

 

Total Estimated

Net Effect on

General Revenue

Fund

($5,000,000)

($5,000,000)

($5,000,000)


ESTIMATED NET EFFECT ON OTHER STATE FUNDS

FUND AFFECTED

FY 2009

FY 2010

FY 2011

State School Moneys Fund*

$0

$0

$0

 

 

 

 

Total Estimated

Net Effect on Other

State Funds*

$0

$0

$0

*Offsetting Transfers In from General Revenue and Disbursements to School Districts total $5,000,000 annually


Numbers within parentheses: ( ) indicate costs or losses. This fiscal note contains 4 pages.


ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED

FY 2009

FY 2010

FY 2011

 

 

 

 

 

 

 

 

Total Estimated

Net Effect on All

Federal Funds

$0

$0

$0



ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)

FUND AFFECTED

FY 2009

FY 2010

FY 2011

 

 

 

 

 

 

 

 

Total Estimated

Net Effect on

FTE

0

0

0


Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).


Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).


ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED

FY 2009

FY 2010

FY 2011

Local Government

$5,000,000

$5,000,000

$5,000,000








FISCAL ANALYSIS


ASSUMPTION


According to officials from the Department of Elementary and Secondary Education, this proposal will increase a specific appropriation to small school districts from the current $15 million to $20 million


FISCAL IMPACT - State Government

FY 2009

(10 Mo.)

FY 2010

FY 2011

GENERAL REVENUE

 

 

 

 

 

 

 

Cost - DESE - Increased appropriation for small school districts


($5,000,000)


($5,000,000)


($5,000,000)

 

 

 

 

ESTIMATED NET EFFECT ON GENERAL REVENUE


($5,000,000)


($5,000,000)


($5,000,000)

 

 

 

 

STATE SCHOOL MONEYS FUND

 

 

 

 

 

 

 

Transfer In - General Revenue - Increased appropriation for small school districts


$5,000,000


$5,000,000


$5,000,000

 

 

 

 

Disbursements - School Districts - Small school districts


($5,000,000)


($5,000,000)


($5,000,000)

 

 

 

 

ESTIMATED NET EFFECT ON STATE SCHOOL MONEYS FUND


$0


$0


$0



FISCAL IMPACT - Local Government

FY 2009

(10 Mo.)

FY 2010

FY 2011

LOCAL POLITICAL SUBDIVISIONS

 

 

 

 

 

 

 

Income - School Districts - Specific funding for small school districts


$5,000,000


$5,000,000


$5,000,000

 

 

 

 

ESTIMATED NET EFFECT ON LOCAL POLITICAL SUBDIVISIONS


$5,000,000


$5,000,000


$5,000,000

 

 

 

 


FISCAL IMPACT - Small Business


No direct fiscal impact to small businesses would be expected as a result of this proposal.


FISCAL DESCRIPTION


This proposed legislation increases the overall specific appropriation amount for small school districts from $15 million to $20 million with $15 million being distributed to eligible districts in proportion to their average daily attendance. Beginning with Fiscal Year 2009, the bill also allows schools that have an average daily attendance of 351 to 449 students to receive a flat amount per student that decreases proportionately as the average daily attendance increases.


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






                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                February 8, 2008