COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         4957-03

Bill No.:          HCS for HBs 2281, 2489 & 2537

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

Type:              Original

Date:               April 25, 2008

Bill Summary:           Requires school districts to disclose the total compensation packages of school administrators; Allows two or more adjacent school districts to share a superintendent when at least one of the districts' accreditation status is "accredited" or "provisionally accredited"; Changes the maximum percentage of increase in annual compensation in the final average salary for members of the Missouri Public School System

FISCAL SUMMARY

Numbers within parentheses: ( ) indicate costs or losses. This fiscal note contains 6 pages.

☐ 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).

FISCAL ANALYSIS

ASSUMPTION

Officials from the Office of Secretary of State (SOS) assume many bills considered by the General Assembly include provisions allowing or requiring agencies to submit rules and regulations to implement the act. The SOS is provided with core funding to handle a certain amount of normal activity resulting from each year’s legislative session. The fiscal impact to the SOS office for Administrative Rules for this proposal is less than $2,500. The SOS recognizes this is a small amount and does not expect additional funding would be required to meet these costs. However, SOS also recognizes that many such bills may be passed in a given year and that collectively the costs may be in excess of what the SOS can sustain with their core budget. Any additional required funding would be handled through the budget process.

§165.111

Officials from the Department of Elementary and Secondary Education (DESE) assume this section of the proposal will likely result in advertising costs and increased employee time for local school districts. DESE defers to the districts regarding total costs.

This section requires DESE to publish the information on the Internet web site. This requirement will increase employee work time but will not likely result in significant additional costs.   

DESE provided the following OAITSD estimates of cost:

In order to collect, store, and make available for viewing data concerning school district staff compensation, some additional storage and either new programs or modifications to existing programs would be required.

This work is estimated between 160 to 260 man-hours.

     Cost if done with State staff would be between $4,000 and $6,500

     Cost if done with consulting staff would be between $12,800 and $20,800

Based on IT responses from other agencies, Oversight estimates the IT portion of this request can be accomplished within existing resources; however; if priorities shift, additional FTE/overtime would be needed to implement. Funding would be requested through the budget process

§168.218

Officials from the Department of Elementary and Secondary Education state this section will ASSUMPTION (continued)

have no fiscal impact on their agency or on local school districts.

Officials from the Francis Howell School District assume districts taking advantage of this legislative change may reduce expenses.

Officials from the Marshfield School District state salary and benefits saved may be from $40,000 to $50,000 per district if they do not have to add other staff to help fill the void.

Officials from the Poplar Bluff School District state there would be no fiscal impact to their school district.

Oversight assumes there would be savings to participating districts. Not knowing how many, if any, districts would participate, Oversight will show a positive impact from $0 to Unknown.

§169.010 & 169.020 

The Joint Committee on Public Employee Retirement has reviewed this proposal and has determined an actuarial study is not needed under the provisions of section 105.660 (5).      

Officials from the Public School and Education Employee Retirement Systems of Missouri (PSRS) state this proposal will have no fiscal impact on their agency. A similar request was sent to PSRS actuaries (Gabrial, Roeder, Smith and Company), who estimated that while there would be some financial impact to the plan, the cost impact would be immaterial.

FISCAL IMPACT - Small Business

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

FISCAL DESCRIPTION

§168.218

Two or more adjacent school districts may share a superintendent who possesses a valid Missouri superintendent's license when at least one of the sharing districts is classified as accredited or provisionally accredited by the state board of education.

Section 169.010 has an emergency clause.

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

Public School and Education Employee Retirement Systems of Missouri

Office of Secretary of State

            Administrative Rules Division

School Districts

            Francis Howell

            Marshfield

            Poplar Bluff

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                April 25, 2008