COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 3753-02
Bill No.: SB 1232
Subject: Office of Administration, State Agencies, Employers/Employees
Type: Original
Date: February 16, 2004
FISCAL SUMMARY
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| General Revenue Fund * | $0 | (Unknown) | (Unknown) |
| Total Estimated
Net Effect on General Revenue Fund * |
$0 | (Unknown) | (Unknown) |
* unknown expected to exceed $100,000.
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Various State Funds * | $0 | (Unknown) | (Unknown) |
| Total Estimated
Net Effect on Other State Funds * |
$0 | (Unknown) | (Unknown) |
* unknown expected to exceed $100,000.
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 5 pages.
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Local Government | $0 | $0 | $0 |
ASSUMPTION
Officials from the Office of Administration, Division of Facilities Management, the Department of Public Safety; Division of Fire Safety, and Capitol Police; the Department of Corrections, the Department of Revenue, and the Department Of Labor and Industrial Relations, assume this proposal would have no impact on their organizations.
Officials from the Office of Administration, Division of Purchasing and Materials Management, the Department of Public Safety; Missouri Veterans Commission, and State Water Patrol; the Department of Insurance, the Department of Mental Health, the Department of Natural Resources, and the Department of Transportation, assume this proposal would have an unknown impact on their organizations.
ASSUMPTIONS (continued)
Officials from the Office of the Secretary of State (SOS) assume this proposal would require their organization to hire a purchasing consultant and an administrative assistant to assist management in defining commercial activities and developing the required commercial activity listing, developing a competitive sourcing process, collecting and analyzing cost data, and preparing required reports. SOS included an estimate of the cost for the 2 additional FTE including salaries, benefits, equipment, and expenses totaling $152,396 starting in FY 2006. Annual expenditures for salaries, benefits, and expenses would be approximately $133,000.
Officials from the Department of Elementary and Secondary Education (DESE) assume this proposal would require their organization to add a program director and an administrative assistant to compile the required commercial activities listing, analyze and track activities, and would require a number of DESE staff to provide the information used to develop the listing. DESE included an estimate of the cost for the 2 additional FTE including salaries, benefits, equipment, and expenses totaling $123,671 for FY 2005, $145,167 for FY 2006, and $148,838 for FY 2007.
Oversight assumes that nearly every state agency performs functions which could be classified as commercial activities, and that the administrative cost of implementing this proposal would be significant but unknown since developing the list of commercial activities is one of the requirements of the proposal. Oversight has shown unknown cost to various state funds beginning in FY 2006 for these activities.
Oversight further assumes that any savings to state agencies would not be realized until after FY 2007 since the process of developing competitive sourcing programs and publicizing the list of commercial activities would take place in FY 2007.
| FISCAL IMPACT - State Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| GENERAL REVENUE FUND | |||
| Cost - state agencies | |||
| Administration * | $0 | (Unknown) | (Unknown) |
| ESTIMATED NET EFFECT ON GENERAL REVENUE FUND * |
$0 |
(Unknown) |
(Unknown) |
| * unknown expected to exceed $100,000. | |||
| FISCAL IMPACT - State Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| VARIOUS STATE FUNDS | |||
| Cost - state agencies | |||
| Administration * | $0 | (Unknown) | (Unknown) |
| ESTIMATED NET EFFECT ON VARIOUS STATE FUNDS * |
$0 |
(Unknown) |
(Unknown) |
* unknown expected to exceed $100,000.
| 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 establish a process for defining government services which could be designated as commercial activities and performed by private businesses. The proposal would require state agencies to develop cost estimates for government performance of those services, and would require each agency to develop an open and competitive process for selecting state or external organizations to provide those services. An interested party as defined in the proposal could challenge an agency's decision to exclude any government service from the list of commercial activities.
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 the Secretary of State
Office of Administration
Division of Facilities Management
Division of Purchasing and Materials Management
Department of Corrections
Department of elementary and Secondary Education
Department of Insurance
Department Of Labor and Industrial Relations
Department of Mental Health
Department of Natural Resources
Department of Public Safety
Missouri Veterans Commission
Capitol Police
Fire Safety
State Water Patrol
Department of Revenue
Department of Transportation
Mickey Wilson, CPA
Director
February 16, 2004