NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.



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F I S C A L I M P A C T R E P O R T





SPONSOR: Gonzales DATE TYPED: 02/15/99 HB 169
SHORT TITLE: Uniform Accounting System SB
ANALYST: Fernandez


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
 Recurring

or Non-Rec

 Fund

Affected

FY99 FY2000 FY99 FY2000
NFI



(Parenthesis ( ) Indicate Expenditure Decreases)



Relates to HB 125, Conflicts with SB22



SOURCES OF INFORMATION



State Department of Public Education (SDE)

State Auditor

LFC files



SUMMARY



Synopsis of Bill



This bill amends the Public School Finance Act to require SDE to establish rules and procedures for a uniform system of accounting and budgeting for public schools and establishes a school district's temporary operating budget as the school district's final operating budget.



Significant Issues



The State Department of Education indicates that the proposed changes would benefit school districts, local boards, and would result in improved utilization of staff resources for school districts and the department.





FISCAL IMPLICATIONS



The State Department of Education indicates this change may result in a savings in administrative costs.



ADMINISTRATIVE IMPLICATIONS



The proposed changes would result in a reduction of responsibilities and staff time. The department indicates that staff resources would be redirected toward other statutory requirements.



DUPLICATION/CONFLICT/RELATIONSHIP



House Bill 169 relates to House Bill 125 which amends the Public School Finance Act to require the use of prior year 40th day and December 1 membership for calculation of program units for distribution of State Equalization Guarantee (SEG) funds.



This bill conflicts with Senate Bill 22 which proposes to eliminate SDE from the budget approval process.



TECHNICAL ISSUES



The Office of the State Auditor indicates that SDE should forward a copy of the rules and procedures for accounting and budgeting for public schools to their office in order to ensure compliance with rules and regulations promulgated by the State Auditor.



OTHER SUBSTANTIVE



The LFC supports a provision that provides local school districts with the flexibility to implement budgets in a more efficient manner and which would result in a more effective and efficient use of department and district resources without compromising accountability.



CTF/njw