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





SPONSOR: Sanchez DATE TYPED: 02-26-99 HB
SHORT TITLE: Construct Public Schools on Indian Lands SB 236
ANALYST: Taylor

REVENUE



Estimated Revenue
Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY99 FY2000
n.a. $ 58,000.0 $ 58,000.0 Recurring Legislative Public School Capital Outlay
n.a. $ (58,000.0) $ (58,000.0) Recurring General Fund

(Parenthesis ( ) Indicate Revenue Decreases)



Conflicts with SB-240



SOURCES OF INFORMATION



State Department of Education



SUMMARY



Synopsis of Bill



Senate Bill 236 renames the public school capital outlay fund. The fund becomes the legislative public school capital outlay fund. The bill redistributes Indian gaming revenue sharing, Indian gaming regulatory fees and (non Indian) gaming tax revenues from the general fund to the legislative public school capital outlay fund. It changes the way that the public school capital outlay council is to prioritize applications for assistance by giving first priority (except for emergences) to the construction of new schools on Indian lands and previously funded but incomplete projects. It directs the public school capital outlay council, working with the State Department of Education and appropriate school districts to evaluate annually the need for new public schools on Indian reservations. The bill repeals the new provisions that transfer gaming revenues and require an annual evaluation of the need for new schools on Indian reservations on July 1, 2003.



FISCAL IMPLICATIONS



The transfer of Indian gaming regulatory fees, Indian gaming revenue sharing and the gaming tax revenues would provide an estimated $58 million annually to the legislative public school capital outlay fund for four years or until FY 2004. The gain to the school fund is offset by an equivalent loss to the general fund.



Estimated gaming revenues remain highly uncertain. Several Indian gaming tribes are not complying with the revenue sharing agreements. Non-Indian gaming is just beginning and thus the revenue estimate is based on assumptions as to the likely level of activity rather than any historical evidence.



ADMINISTRATIVE IMPLICATIONS



The SDE reports that it would need to FTE to provide the required evaluation of public school capital outlay need on Indian reservations.



BT/gm