This Fiscal Note is not an official copy and should not be quoted or cited. Represents maximum effect on state. Officials of the Office of Administration-Division of Budget and Planning stated they could accomplish duties required by this proposal with existing personnel.
Oversight notes that the proposal is designed to have no fiscal impact on political subdivisions.
Any monies subdivisions would realize from adjusting tax rates and from increased Foundation Formula distributions would be subtracted from total losses before direct state reimbursements would be calculated. Phasing out the property tax on motor vehicles from property tax would eliminate a source of the Fund's income. Reducing assessed values could affect amounts needed to fully fund the Foundation Formula. DES officials note that reducing assessed values would start to lower the guaranteed tax base in three years. A reduced guaranteed tax base reduces the inflation adjustment in the Formula for districts to fund inflationary increases of educational and operational increases.