COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 3073-01

Bill No.: SB 932

Subject: Unemployment Compensation; General Assembly, County Officials

Type: Original

Date: January 20, 2004




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2005 FY 2006 FY 2007
Total Estimated

Net Effect on

General Revenue

Fund

$0 $0 $0



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Unemployment Compensation Trust Fund Less than $25,000 Less than $25,000 Less than $25,000
Total Estimated

Net Effect on All

State Funds

Less than $25,000 Less than $25,000 Less than $25,000



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 pages.









ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Local Government $0 $0 $0




FISCAL ANALYSIS



ASSUMPTION



Officials from the Office of Administration, Division of Personnel, assume this proposal would have no impact on their organization.



Officials from the Department of Labor and Industrial Relations (DOL) assume the fiscal impact of this proposal cannot be estimated as wages earned by an elected official are not reportable in the base period. However, it is DOL's estimation that 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.



In response to a similar proposal in the prior session, officials from the Office of Administration - Division of Accounting, the Department of Transportation, the City of Kansas City and the County of Cole assume the proposal would have no fiscal impact on their organizations.



In response to a similar proposal in the prior session, officials from the City of Springfield assumed the proposal could result in savings to the City but are unable to estimate how much.





ASSUMPTION (continued)



In response to a similar proposal in the prior session, officials from the Department of Conservation assumed the proposal would have insignificant impact on their agency's funds.



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 2005

(10 Mo.)

FY 2006 FY 2007
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
ESTIMATED NET EFFECT ON UNEMPLOYMENT COMPENSATION TRUST FUND



Less than $25,000


Less than $25,000


Less than $25,000




FISCAL IMPACT - Local Government FY 2005

(10 Mo.)

FY 2006 FY 2007
$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 remove 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 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

Department of Labor and Industrial Relations









Mickey Wilson, CPA

Director

January 20, 2004