SUBJECT: Corrections, Laundry Services.
TYPE: Original
DATE: February 8, 2000
Net Effect on All State Funds
FUND AFFECTED
FY 2001
FY 2002
FY 2003 Working Capital
Revolving Fund
($207,250)
($207,250)
$0
Total Estimated
($207,250)
($207,250)
$0
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| None | |||
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 3 pages.
ASSUMPTION
Officials from the Department of Corrections assume the proposed legislation would eliminate the ability of the Missouri Vocational Enterprises (MVE) to provide "laundry and linen services" for not-for-profit organizations as currently authorized.
At the present time, MVE has one-year contracts renewable to a maximum of three years for laundry and linen services with four (4) not-for-profit organizations as listed below:
· St. Mary's Health Center, Jefferson City MO, expires April 2002
· Villa Marie Nursing Home, Jefferson City MO, expires April 2002
· BJC Health Systems (Boone Hospital), Columbia MO, expires March 2002
· SSM Health Care, St. Louis MO, expires September 2002
In total these contracts generate $207,250 in annual profit to the Working Capital Revolving Fund, hence the initial impact of not renewing contracts will be $207,250 in loss of profits in FY 2001 and FY 2002.
FISCAL IMPACT - State Government FY 2001 FY 2002 FY 2003
(10 Mo.)
WORKING CAPITAL REVOLVING FUND
Loss of Revenue - Department of Corrections ($207,250) ($207,250) $0
FISCAL IMPACT - Local Government FY 2001 FY 2002 FY 2003
(10 Mo.)
0 0 0
FISCAL IMPACT - Small Business
The proposal could impact those not-for-profit organization that contract with the vocational enterprises program for laundry or linen services.
DESCRIPTION
The proposed legislation authorizes the Vocational Enterprises Program of the Department of Corrections to provide laundry or linen services only to any department, agency or institution of
the state, and any state employee.
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
Department of Corrections
Office of Attorney General
NOT RESPONDING: Office of Attorney General
Jeanne Jarrett, CPA
Director
February 7, 2000