HCS HB 288 -- CLASSROOM TRUST FUND

SPONSOR:  Cunningham, 86 (Jetton)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Education
by a vote of 14 to 8 with 1 present.

Beginning in Fiscal Year 2007 and upon condition of full funding
of the Foundation Formula Program for the distribution of state
school aid, 20% of the moneys from the Gaming Proceeds for
Education Fund will be redirected into the Classroom Trust Fund,
created by the substitute.  Each subsequent year for four years,
an additional 20% of those moneys will be directed to the
Classroom Trust Fund until 100% of the gaming moneys go to that
fund.  Currently, these funds are deposited in the State School
Moneys Fund, which provides funds for the foundation formula.
The substitute directs that the gambling moneys must be replaced
in the State School Moneys Fund by general revenue.  The funds
will be distributed on a per-pupil basis; keyed to attendance;
and may be used for teacher recruitment and retention,
construction and repair of buildings, technology enhancements or
instructional materials, school safety, and supplying additional
funds for any required state or federal program.

FISCAL NOTE:  Estimated Net Effect on State School Moneys Fund of
$0 in FY 2004, FY 2005, and FY 2006.  Estimated Net Effect on the
Classroom Trust Fund of $0 in FY 2004, FY 2005, and FY 2006.
Estimated Net Effect on Gaming Proceeds for Education Fund of $0
in FY 2004, FY 2005, and FY 2006.  Estimated Net Effect on
Lottery Proceeds Fund of $0 in FY 2004, FY 2005, and FY 2006.
Provisions of this proposal do not take effect until FY 2007.
See narrative for fiscal impact beginning with FY 2007.

PROPONENTS:  Supporters say that the bill makes gaming funds
visible and trackable.  Safeguards are in place to prevent the
bill from eroding foundation formula funding.  Patrons of school
districts appreciate the flexibility of the funds and the fact
that it is easier to see and explain in any given district where
gaming money is going.  The bill is consistent with the original
intent of directing gaming moneys to education in addition to,
rather than in place of, general revenue.

Testifying for the bill were Representatives Jetton and Lager;
Jim Botts, Superintendent of New Bloomfield R-III School
District; Mark Enderle, Superintendent of Fulton School District;
Turner Tyson, Assistant Superintendent for Business of Jefferson
City Public Schools; Cooperating School Districts of Greater
Kansas City; Missouri State Teachers Association; Hold-Harmless
Coalition; and Cooperating School Districts of Greater St. Louis.

OPPONENTS:  Those who oppose the bill say that it will seriously
damage equity, possibly leading to litigation.  The safeguards
against eroding the funding for the foundation formula are
subject to mathematical manipulation, and the amount of funding
needed in future years makes it unlikely the bill would ever be
implemented.  Rather than proceeding with the bill, the General
Assembly should wait to see the outcome of current school finance
studies and possibly direct gaming to categorical funding in a
new formula.

Testifying against the bill were Representative Graham; and
Missouri National Education Association.

Becky DeNeve, Senior Legislative Analyst

Missouri House of Representatives
Last Updated July 25, 2003 at 10:11 am