Community colleges-amendments.

09LSO-0202.C1

FISCAL NOTE

This bill contains an appropriation of $1,335,000 from the GENERAL FUND.  This appropriation is effective immediately.

This bill contains an appropriation of $250,000 from the GENERAL FUND.

This bill contains an authorization of 4 Full-Time positions and up to 3 AWEC positions.

Discussion of Appropriations:

Community College Commission:

The draft bill provides a $250,000 fiscal-year 2010 appropriation for distribution to the colleges in order to defer costs stemming from submission of capital construction requests to the Construction Management Division of the Department of Administration and Information.  It is presumed that similar appropriations, possibly adjusted for inflation, would be needed for fiscal-years 2011 and 2012.

State Aid payments to colleges might also increase, but the magnitude of any increase would be subject to the following:  1) fiscal-year 2010 supplemental appropriations; 2) 4-mill revenue collections through fiscal-year 2009; 3) consistent separation of fixed and variable costs by all seven colleges; 4) enrollment figures for academic-year 2009; and 5) any approved external cost adjustments.  Given these variables, any increases for fiscal-years 2011 and 2012 cannot be determined at this time.

The draft bill provides $525,000 in appropriations for four (4) additional full-time positions.  These appropriations cover the time period between the effective dates of the various subsections (assumed to be no later than mid-March 2009) and June 30, 2010.  It is presumed that similar appropriations, albeit based upon 12-month periods, rather than a 15-month period, and possibly adjusted for inflation, would be needed for FY11 and FY12.

The draft bill also provides a $300,000 appropriation for development and maintenance of “the comprehensive assessment of community college buildings and future space requirements.”  It is presumed that while development activities would be finished in fiscal-year 2010, maintenance activities would be ongoing in fiscal-years 2011 and 2012.  The cost of these ongoing maintenance activities might need to be adjusted for inflation as well.

The draft bill provides a $150,000 appropriation for development of “guidelines and criteria necessary for segregating variable and fixed cost data.”  This would cover a one-time expenditure occurring in the latter part of FY09, but there is a requirement that this segregation of data be reviewed at least every four years, resulting in a subsequent review (and possible additional expenditure, albeit smaller) no later than FY13.

General Services Division, Department of Administration and Information:

The draft bill provides an appropriation of $360,000 and up to three (3) AWEC positions. This would cover costs for salary, benefits, transportation, telecom and central data services based on current costs per Construction Manager employee. The appropriation does not include cost for space rent as room will be made in existing General Service Division facilities.

Prepared by:   Matthew Sackett, LSO   Phone: 777-7881