COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 1962-01
Bill No.: Perfected SB 607
Subject: Unemployment Compensation; General Assembly; County Officials
Type: Original
Date: April 1, 2003
FISCAL SUMMARY
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on General Revenue Fund |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on Other State Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Unemployment Compensation Trust Fund | Less than $25,000 | Less than $25,000 | Less than $25,000 |
| Total Estimated
Net Effect on All Federal Funds |
Less than $25,000 | Less than $25,000 | Less than $25,000 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Local Government | $0 | $0 | $0 |
ASSUMPTION
Officials from the Counties of Boone, St. Charles and St. Louis and the City of St. Louis did not respond to our fiscal impact request.
Officials from the Office of Administration - Division of Accounting, Department of Transportation, City of Kansas City and County of Cole assume the proposal would have no fiscal impact on their agencies.
Officials from the City of Springfield assume the proposal could result in savings to the City but are unable to estimate how much.
Officials from the Department of Conservation assume the proposal would have insignificant impact on their agency's funds.
Officials from the Department of Labor and Industrial Relations (DOL) note currently, section 288.060.3, RSM0, requires that when calculating the weekly benefit amount of a partially unemployed claimant, the amount of wages earned in excess of $20 are to be deducted from the ASSUMPTION (continued)
claimant's weekly benefit amount. DOL notes, however, currently pay earned by an elected official is not considered wages when making this computation. DOL states this proposal would make pay earned by an elected official considered as wages when calculating the claimant's weekly benefit amount. DOL states the fiscal impact of this proposal cannot be estimated as wages earned by an elected official are not reportable in the base period. DOL estimates the amount of the reduction in benefits paid from the Unemployment Compensation Trust Fund as a result of this change would not exceed $25,000 annually.
Oversight notes the estimate from DOL for the Unemployment Compensation Trust Fund accounts for all unemployment claims, private and public. Accordingly, Oversight is showing no additional impact to state or local governments.
| FISCAL IMPACT - State Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| FEDERAL FUNDS | |||
| UNEMPLOYMENT COMPENSATION TRUST FUND | |||
| Savings - DOL | |||
| Potential Reduction in Benefits Paid to
Elected Officials |
Less than $25,000 | Less than $25,000 | Less than $25,000 |
| 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 businesses would be expected as a result of this proposal.
DESCRIPTION
This proposal removes the salaries of elected officials from those salaries which are not considered wages when determining the amount a partially unemployed employee is entitled to receive in a given week.
This proposal 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 Accounting
Department of Transportation
City of Kansas City
County of Cole
City of Springfield
Department of Conservation
Department of Labor and Industrial Relations
NOT RESPONDING
Boone County
St. Charles County
St. Louis County
City of St. Louis
Mickey Wilson, CPA
Director
April 1, 2003