Fiscal Note - SB 0391 - Modifies Holidays For State Employees
L.R. NO. 1555-02
BILL NO. SB 391
SUBJECT: Holidays; State Employees
TYPE: Original
DATE: February 22, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
All State Funds $2,798,340 $2,938,257 $3,085,169
Total Estimated
Net Effect on All
State Funds $2,798,340 $2,938,257 $3,085,169
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
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 of the Office of Administration - Division of Personnel (OA) assume
the State of Missouri has twelve (12) holidays plus one (1) executive day,
the Friday after Thanksgiving, off each year. The State's average budgeted
salary cost of one work day or holiday for 1997 for each of its 55,656
employees is $124.15 per day, totalling $6,909,692 per day. Therefore this
proposal would result in a $6,909,692 savings in productivity annually.
COA officials stated the State has approximately 36% of its employees working
in an operation that runs seven days a week (ex. prisons, mental health
facilities, veteran homes and the Missouri State Highway Patrol). 75% or
15,027 employees must work on a holiday at straight time rate and
subsequently be paid for the holiday by cash or time off (at a later date).
COA staff noted that states, cities and counties who have added personal or
vacation days vs. fixed holidays, estimate the following cost savings:
a) 75% (15,027) of those employees will be considered essential and
required to work each holiday.
b) About 75% to 90% of those 15,027 employees (11,270 minimum) can be
rescheduled off with no premium cost by spreading out the scheduling
of their accrued time (personal day).
Estimated Cost of One Paid Day
Based on FY97 Total Personal Service and Total FTE (55,656)
Total
FY97 Total Personal Services $1,504,009,502
Fringes (19.45%) 292,529,848
Totals Plus Fringes 1,796,539,350
TPS = Fringes Divided by 2,080 = 863,720.84
Times 8 hours per day = 6,909,766.72
Divided by Total FTE 55,656.00
= Cost per employee per day $124.15
x 11,270 employees = $1,399,170.50
1 day - Spreading out scheduling of accrued time = $1.4 million
2 days - Spreading out scheduling of accrued time = $2.8 million
3 days - Spreading out scheduling of accrued time = $4.2 million
Years of Service
0-5 years 5+ years Total
# of Employees 20,593 35,063 55,656
% of Employees 37.0% 63.0% 100%
NOTE: Data projected to 55,656 FTEs based on years of service of 47,585
employees.
After further discussions with OA, Oversight assumes that the actual savings
shown represents overtime amounts previously paid when employees worked
holidays. Therefore, OA officials stated that this proposal would eliminate
two holidays resulting in a cost avoidance of approximately $2.8 million plus
an adjustment for inflation.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
ALL STATE FUNDS
Savings-All State Funds
Personal services $2,798,340 $2,938,257 $3,085,169
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 proposal would eliminate Lincoln's birthday, Truman's birthday and
Columbus day as public holidays for state employees. It would make the
Friday following Thanksgiving a state holiday and would allow state employees
to have two personal days off each year in addition to their annual leave and
sick leave.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Office of Administration - Division of Personnel
This Fiscal Note is not an official copy and should not be quoted or cited.