COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 1166-22
Bill No.: HCS for SS 2 for SCS for SB 481
Subject: Transportation; Transportation Dept; Road and Highways
Type: Original
Date: May 6, 2003
FISCAL SUMMARY
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| General Revenue | (Unknown greater than $84,456) | (Unknown greater than $168,912) | (Unknown greater than $168,912) |
| Total Estimated
Net Effect on General Revenue Fund* |
(Unknown greater than $84,456) |
(Unknown greater than $168,912) |
(Unknown greater than $168,912) |
*Unknown could exceed $100,000.
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Highway Fund | Unknown greater than $330,670 | Unknown greater than$396,804 | Unknown greater than $396,804 |
| Total Estimated
Net Effect on Other State Funds |
Unknown greater than $330,670 |
Unknown greater than $396,804 |
Unknown greater than $396,804 |
*Unknown could exceed $100,000
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 8 pages.
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Local Government | $0 | $0 | $0 |
ASSUMPTION
Officials with the Office of State Courts Administrator and Department of Revenue assume this proposal would have no fiscal impact on their agencies.
21.795
This section proposes that the transportation Inspector General shall serve as the executive director of the Joint Committee on Transportation Oversight (JCTO) and includes other provisions for the JCTO.
Officials with Department of Transportation (MoDOT) assume this section could create an annual accountability report that MoDOT would submit to the JCTO and presentation of a prioritized plan for all modes of transportation. MoDOT notes there could be additional personnel needed to handle additional requests.
Oversight assumes MoDOT could absorb the additional workload with existing staff.
ASSUMPTION (continued)
226.030, 226.033
These sections include provisions for the state highways and transportation commission.
Officials with MoDOT assume this section has provisions for Commissioners for the Missouri Highways and Transportation Commission and could revise the Commissioners' duty dates.
No fiscal impact was noted by any responding agencies.
226.096
This section relates to the use of arbitration in MoDOT contract disputes.
MoDOT assumes this section could provide that any controversy or claim on a contract award for highway and bridge projects (probably even design contracts) are to be settled by arbitration. However, both parties at least have to agree to such alternative dispute resolution. MoDOT assumes this is likely to cost a substantial amount of money (Road Fund), but that amount is unknown.
Oversight assumes the potential unknown negative impact addressed by MoDOT is a possible secondary effect of the proposal, however, no direct fiscal impact was indicated.
226.192
This section of the proposal creates the office of transportation Inspector General.
Officials with the Office of Administration (COA)- Division of Budget and Planning (BAP) assume their agency could need additional staff and related expenses. Although the language does not order the Division to provide assistance, it allows the Inspector General to request assistance from the Division. Given the detailed nature of the Inspector General's assigned work, it is likely that any assistance requested from BAP would require a great deal of the staff's time to complete.
BAP further assumes this section of the proposal could cause considerable cost to General Revenue. While the bill does not specifically state what agency funds the Office of Inspector General, BAP assumes these costs would have to come from the General Revenue Fund. The Inspector General is assigned multiple duties, which could require a significant amount of staff and related expenses for the office.
ASSUMPTION (continued)
Officials with MoDOT assume this section creates the Transportation Inspector General, allows for the Transportation Inspector General to hire necessary staff, states that all funding for the Transportation Inspector General and staff will come from appropriations other than funds derived from highway users fees and dedicated to the operation of Department of Transportation and states the duties and responsibilities of the Transportation Inspector General.
MoDOT assumes that there will be significant and on-going requests for information including reports and explanations of inquiries. Therefore, MoDOT assumes that one additional Senior Business Specialist could be needed to coordinate information requests/responses for the new Transportation Inspector General and to coordinate the additional information to be discussed by the Joint Committee on Transportation Oversight. The salary for this employee is $44,628 with standard office equipment and expenses.
Oversight assumes that MoDOT could handle any additional requests for information with existing staff.
Oversight assumes this proposal could create a position of an independent Inspector General that would perform duties as assigned by the JCTO. Oversight further assumes that the activities of the Inspector General could include investigations, complaint and contract reviews. With information provided by BAP (for the Governor's Office) from a similar proposal, Oversight assumes the following cost could be associated with this proposal.
This position would become active on January 1, 2004.
Personal Service
Inspector General $86,868
Executive Secretary $33,380
Note: The Inspector General could request additional personnel appropriations depending on the scope of the new office.
FY 04-Cost (Six months)
Salaries $60,124
Fringe Benefits $24,332
Equipment and Expenses Unknown
Total (Unknown greater than $84,456)
ASSUMPTION (continued)
FY 05 and 06 (no growth assumed)
Salaries ($120,248)
Fringe Benefits ($48,664)
Equipment and Expenses (Unknown)
Total (Unknown greater than $168,912)
226.194, 226.195, 226.194, 226.197, 226.198, 226.199
These sections address the subsequent duties of the Inspector General's office.
Section 1
This section eliminates any Inspector General position within MoDOT.
MoDOT assumes this section states their agency cannot employ anyone in a position to detect and prevent fraud, waste, and abuse in department programs and operation and to provide independent and objective assistance to help assure the department is operated in compliance with the constitution and laws of the United States and the state of Missouri. Recently, the employees performing auditing duties were combined with the Inspector General's Office and the Director of the Audit and Business Analysis' title was changed to the Inspector General. MoDOT feels that it is necessary to maintain an internal process to monitor itself. Therefore, MoDOT assumes that we will continue to employ the employees that work as internal auditors and that the title for the current Inspector General will be changed back to Director of Audit and Business Analysis. Additionally, without internal audits and investigations of grievances, federal funding of highway dollars from Federal Highway Administration will be at risk.
Oversight notes that MoDOT currently has an Inspector General and an Audit and Business Analysis section. Both sections currently have a director's position.
Oversight assumes this section of the proposal could remove the current Inspector General position within MoDOT. The savings are based on current salaries and benefits.
FY 04 (six months), 05 and 06
Senior Investigator $43,764
Special Assignments Liaison $48,216
Asst. Special Reviews Coordinator $52,092
ASSUMPTION (continued)
Senior Investigator $41,304
Inspector General $83,808
Total Salaries $269,184
Benefits (47.41%) $127,620
FY 04 (six months)-Savings
Salaries $134,592
Fringe Benefits $63,810
Expense and Equipment Unknown
FY 05 and 06-Savings
Salaries $269184
Fringe Benefits $127620
Expense and Equipment Unknown
| FISCAL IMPACT - State Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| GENERAL REVENUE | |||
| Cost- Inspector General's Office | |||
| Personal Service (2 FTE) | (Unknown greater than $60,124) | (Unknown greater than $120,248) | (Unknown greater than $120,248) |
| Fringe Benefits | (Unknown greater than $24,332) | (Unknown greater than $48,664) | (Unknown greater than $48,664) |
| Expense and Equipment | (Unknown) | (Unknown) | (Unknown) |
| Total Cost- Inspector General's Office | (Unknown greater than $84,456) | (Unknown greater than $168,912) | (Unknown greater than $168,912) |
| NET ESTIMATED EFFECT ON GENERAL REVENUE | (Unknown greater than $84,456) | (Unknown greater than $168,912) | (Unknown greater than $168,912) |
| *Unknown cost is subject to appropriations and could exceed $100,000. | |||
| HIGHWAY FUND | |||
| Savings- Department of Transportation | |||
| Salaries | $224,320 | $269,184 | $269,184 |
| Fringe Benefits | $106,350 | $127,620 | $127,620 |
| Expense and Equipment | Unknown | Unknown | Unknown |
| Total Savings - MoDOT | Unknown greater than $330,670 | Unknown greater than $396,804 | Unknown greater than $396,804 |
| NET ESTIMATED EFFECT ON HIGHWAY FUND | Unknown greater than $330,670 | Unknown greater than $396,804 | Unknown greater than $396,804 |
| FISCAL IMPACT - Local Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small business would be expected as a result of this proposal.
DESCRIPTION
This proposal could create an Inspector General position to also serve as the Executive Director of the legislature's Joint Committee on Transportation Oversight.
This proposal has several provisions relating to the Highway and Transportation Commission.
This proposal has provisions relating to arbitration in MoDOT contracts.
This proposal could remove the Inspector General position currently with MoDOT.
This legislation is not federally mandated and would not require capital improvements.
There could be additional rental space needed for an Inspector General's office.
SOURCES OF INFORMATION
Office of State Courts Administrator
Department of Revenue
Department of Transportation
Office of Administration
Mickey Wilson, CPA
Director
May 6, 2003