Colorado Legislative Council Staff

STATE and LOCAL

CONDITIONAL FISCAL NOTE

State General Fund Expenditure Impact

Cash Fund Revenue Impact

School District Revenue Impact


Drafting Number:

Prime Sponsor(s):

LLS 98-144

Rep. Keller

Sen. Chlouber

Date:

Bill Status:

Fiscal Analyst:

January 22, 1998

House Education

Harry Zeid (866-4753)

 

TITLE:            CONCERNING THE CREATION OF A SCHOOL DISTRICT CAPITAL CONSTRUCTION ACCOUNT IN THE CAPITAL CONSTRUCTION FUND FOR THE PURPOSE OF DISTRIBUTING MONEYS TO QUALIFYING SCHOOL DISTRICTS FOR CAPITAL CONSTRUCTION PROJECTS.



Summary of Legislation


STATE FISCAL IMPACT SUMMARY

FY 1998/99

FY 1999/2000

State Revenues

General Fund

Capital Construction Fund



 



$100,000,000

State Expenditures

General Fund - Transfer to Capital Construction Fund

Other Fund


 


$100,000,000

FTE Position Change

None

None

Local Government ImpactSchool districts that have a per pupil assessed valuation below the statewide average for per pupil assessed valuation may apply for funding of eligible capital construction projects. Moneys would be awarded beginning in FY 2000-01.


            This bill would submit a question to the registered electors of the State of Colorado at the next general election in November 1998, to establish the School District Capital Construction Account within the Capital Construction Fund. For FY 1999-00 and each of the succeeding four fiscal years thereafter, $100 million would be transferred from the General Fund to the School District Capital Construction account. Interest earned from the investment of moneys in the account would remain in the account, and would not revert to the General Fund. Transfers to the account would not be deemed to be appropriations subject to the restriction on state appropriations identified in Section 24-75-201.1, C.R.S.


            Moneys in the School District Capital Construction Account would be used to provide assistance to school districts that undertake qualified capital construction projects. No later than July 1 of each year beginning July 1, 1999, school districts that have a per pupil assessed valuation below the statewide average for per pupil assessed valuation may apply for funding to a joint committee consisting of three members of the House Education Committee and three members of the Senate Education Committee. The committee would evaluate applications and prioritize them based on the following criteria in descending order:

 

               projects designed for immediate safety hazards or health concerns at an existing school facility;

               projects in a school district that has a lower relative wealth compared to other school districts in the state;

               projects that address enrollment growth issues within a school district;

               projects designed to incorporate technology into the educational environment; and

               all other capital construction projects.


            The committee would submit a prioritized list of eligible capital construction projects to the Joint Budget Committee no later than December 1 of each year for consideration for inclusion in the General Appropriations bill. Based on the General Appropriations Bill for FY 2000-01, and each of the succeeding four fiscal years, the Department of Education would direct the payment of moneys appropriated to the Department for approved projects.


            State and school district fiscal impact of the bill is conditional upon approval by the voters.

 


State Expenditures


            Upon approval by the voters, the bill would transfer $100 million annually for a period of five years from the General Fund to the School District Capital Construction Account within the Capital Construction Fund, beginning in FY 1999-00.



Election Expenditure Impacts (For Informational Purposes Only)


            A General Fund line-item in the 1998-99 Long Appropriations Bill will fund the costs of publicizing any initiative or referendum proposal in newspapers and for printing and distribution of the Blue Book to all electors. The General Assembly spent $291,267 GF for one state-wide ballot proposal on the November, 1995 ballot and $1,042,014 GF for the 12 proposals that appeared on the November, 1996 ballot.


            The 1996 General Election fixed costs for mailing the Blue Book to 1.35 million registered voters was $174,036 for postage and $3,800 for obtaining mailing addresses. These costs will be the same regardless of the number of issues on the ballot. Variable costs included: Spanish translation of $11,215; newspaper publication of $644,828; printing costs of $206,806; and other costs of $1,328. Total costs were $1,042,014 GF. Fixed costs totaled $177,837 and variable costs were $72,015 per ballot issue.


            Based on the costs incurred for the 1996 Blue Book, one ballot issue cost $249,852 to print and mail to the public. The $72,015 of incremental cost would be added for each issue to the basic mailing costs of $177,837.



School District Impact


            School districts that have a per pupil assessed valuation below the statewide average per pupil assessed valuation may apply for funding of eligible capital construction projects. Moneys would be awarded beginning in FY 2000-01.



Spending Authority


            The fiscal note would imply that no additional appropriation would be required in FY 1998-99 for implementation of the bill.



Departments Contacted


            Legislative Council Staff        Education