SB 0067 - Fiscal Note

Fiscal Note - SB 0067 - Provides for the election of public service commissioners

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 0163-01

BILL NO. SB 67

SUBJECT: Elections; Public Service Commission

TYPE: Original

DATE: January 22, 1999

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Public Service Commission	$0	($917,731)	($1,517,020)
Total Estimated Net Effect on All State Funds	$0	($917,731)	($1,517,020)

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
None
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Economic Development, Public Service Commission (PSC) state that implementation of this proposal would increase the number of Commissioners from five to nine and would require them to be elected by poplar vote from Missouri's nine congressional districts. The proposal would require up to nine additional Commissioners (9 FTE at $122,274 per year) for a period of time and four administrative secretaries (4 FTE @ $30,631 per year) with related fringe, expense and equipment, commencing January 1, 2001, resulting in a net cost of approximately $1 million during the first half year of implementation in FY 01 and a net cost of approximately $1.5 million during the first full year of implementation in FY 02.

PSC officials derived the amount of the elected Commissioners' salaries from a combination of language in the proposal and language in Sections 386.190 and 386.150, RSMo. The proposal stipulates the salaries would be one and one-half times that of the members of the General Assembly, which would equate to approximately $43,000 annually. Additionally, Section 386.190, RSMo, indicates that members of the publications commission of the PSC would receive $52,000 annually, as enhanced by annual adjustments prescribed by Section 105.005. Each Commissioner is a member of the publications commission. Since enactment of SB 528 in 1984, Commissioners' salaries have been composed of those amounts as outlined in Sections 386.150 and 386.190, RSMo, and enhanced annually according to Section 105.005, RSMo. Therefore, calculation of the Commissioners' salaries would include the amounts set out in the two statutes, as well as the amount stipulated in the proposal, resulting in an annual salary of $122,274.

The PSC has included estimated costs of $15,000 to renovate the agenda room and hearing room to accommodate the additional Commissioners. There would be various numbers of appointed Commissioners serving contemporaneously with nine elected Commissioners for a period of time, resulting in as many as 14 Commissioners for a period of time. PSC officials have also included rental space for the 13 additional FTE, resulting in annual costs of approximately $30,000. However, Oversight assumes the PSC will locate these new FTE in the existing facilities and have only included costs associated with the renovations in the fiscal impact specifications below.

Pursuant to SB 67, one Commissioner from each Missouri Congressional District would be elected at the general election in November 2000. During the time period included in the fiscal note, two Commissioners' terms would end April 14, 2001. Therefore, from April 15, 2001 through the end of FY 01 and FY 02, savings of approximately $50,000 and $250,000, respectively, would be realized for these two appointments.

ASSUMPTION (continued)

The four additional secretaries would have the same duties and responsibilities as the present secretaries to the present Commissioners. The additional Commissioners would have the same statutory duties and responsibilities, i.e., other than location of residence, as the appointed Commissioners.

The Department of Economic Development, Office of the Public Counsel (OPC) assume this proposal would not fiscally impact their agency.

Officials from the Office of the Secretary of State (SOS) assume the first election for Public Service Commissioners would be held in the year 2000 on the general election day and every four years thereafter. Per Section 115.063.3, RSMo, primary and general election costs are borne by the counties and City of St. Louis; therefore, there would be no fiscal impact to the state.

Oversight assumes that since a special election would not be held to elect the Commissioners, any potential additional costs could be absorbed.

Officials from the Office of the Governor (GOV) assume this proposal would have either no or minimal fiscal impact on their office.

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)	(6 Mo.)
PUBLIC SERVICE
COMMISSION FUND
Savings-Public Service Commission (PSC)
Personal Service	$0	$37,957	$186,776
Fringe Benefits	0	11,600	57,079
Expense	0	2,065	10,210
Total Savings - PSC	$0	$51,622	$254,065
Costs-PSC
Personal Service	$0	($642,452)	($1,317,027)
Fringe Benefits	0	(196,333)	(402,483)
Expense and Equipment	0	(130,568)	(51,575)
Total Costs - PSC	$0	($969,353)	($1,771,085)
ESTIMATED NET EFFECT
ON PUBLIC SERVICE
COMMISSION FUND	$0	($917,731)	($1,517,020)
FISCAL IMPACT - Local Government	FY 2000	FY 2001	FY 2002
	(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

This proposal would make Public Service Commissioners elected officers, with one from each of the nine congressional districts, beginning at the general election in the year 2000 and every four years thereafter. Commissioners would serve four-year terms, except for those first elected from even-numbered districts who would initially serve two-year terms. Currently, Public Service Commissioners are appointed and serve six-year terms. Current Commissioners would serve until their terms expire. The newly elected Commissioners would enter office on the first day of January after the election.

This legislation is not federally mandated, would not duplicate any other program and would require additional capital improvements or rental space.

This proposal would not affect Total State Revenues.

SOURCES OF INFORMATION

Department of Economic Development

Public Service Commission

Office of the Public Counsel

Office of the Secretary of State

Office of the Governor

Jeanne Jarrett, CPA

Director

January 22, 1999