Fiscal Note - SB 0237 - State Milk Board Shall Be the Official Rating Agency For Milk Inspection
L.R. NO. 1015-01
BILL NO. SB 237
SUBJECT: Agriculture Department: Milk Inspection
TYPE: Original
DATE: February 18, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
General Revenue $0 $0 $0
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None $0 $0 $0
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Health (DOH) assume the proposed legislation
would result in savings to the General Revenue Fund. DOH assumes they would
reduce staff by 1.5 Environmental Public Health Specialist V (1.5 FTE)
presently used for conducting milk ratings. In addition, there would be a
savings to expense and equipment. DOH compiled savings based on salary from
12/1/96, plus 2.5% and actual calendar 96 expenses, plus 3% inflation.
Officials from the Department of Agriculture (AGR) assume l.5 FTE would be
transferred from DOH as a result of this proposal. That staff level has
enabled the program to meet the current minimum standards of the program, but
are insufficient to meet the dairy industry's need for additional Bulk Tank
Units. The expertise required to allow immediate certification for rating of
farms, plants, and haulers is only possessed by a few people. To assure
continuity of the milk rating program, it is essential that at least one
currently certified person is transferred from DOH as part of the 1.5 FTE
transfer. An additional 1.5 FTE would be needed to meet the milk rating
needs of the dairy industry. Three FTE would allow full rating activities
for biannual ratings as needed. As required by state law and adopted federal
guidelines, these three FTEs would rate, by statistical selection, Missouri
dairy farms, plants, receiving locations and milk haulers to certify Missouri
milk and products for shipment in interstate commerce, using methods depicted
in the manual of methods of rating for interstate commerce adopted by the
pasteurized milk ordinance and Missouri law. Additionally, AGR has requested
equipment and expense for the three FTEs, resulting in annual costs of
approximately $200,000. However, Oversight has not included costs associated
with these additional FTEs, since this legislation does not impose additional
duties consistent with AGR's request.
Oversight assumes existing duties at DOH would transfer to the State Milk
Board. The savings realized by DOH for these functions should transfer to
AGR as they assume the milk rating duties, resulting in a net effect of $0 to
the General Revenue Fund.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
GENERAL REVENUE FUND
Savings-Department of Health (DOH)
Personal Service $48,151 $59,249 $60,730
Fringe Benefits 13,737 16,904 17,326
Expense and Equipment 26,404 32,650 33,630
Total Savings - DOH $88,292 $108,803 $111,686
GENERAL REVENUE FUND
Costs-Department of Agriculture (AGR)
Personal Service ($48,151) ($59,249) ($60,730)
Fringe Benefits (13,737) (16,904) (17,326)
Expense and Equipment (26,404) (32,650) (33,630)
Total Costs - AGR ($88,292)($108,803)($111,686)
ESTIMATED NET EFFECT TO
GENERAL REVENUE FUND $0 $0 $0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of
this proposal.
DESCRIPTION
The proposed legislation would remove the Department of Health (DOH) as the
official rating agency and replace with the State Milk Board as the official
rating agency. Additionally, official rating surveys to determine
appropriate and effective enforcement of standards would be required "at
least biannually", rather than "at least annually". The other change would
remove DOH from the current joint participation of DOH and Department of
Agriculture (AGR) in the promulgation and adoption of a single method of
making official rating surveys of all milk sheds.
This legislation is not federally mandated, would not duplicate any other
program, would not require additional capital improvements or rental space,
and would not affect total state revenue.
SOURCES OF INFORMATION
Department of Health
Department of Agriculture
This Fiscal Note is not an official copy and should not be quoted or cited.