COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 3958-02
Bill No.: SCS for SB 945
Subject: Military Affairs; Veterans.
Type: Original
Date: February 13, 2002
FISCAL SUMMARY
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| General Revenue * | ($373,800) | ($114,454) | $0 |
| World War II Veterans' Recognition Award | $0 | $0 | $0 |
| Total Estimated
Net Effect on All State Funds* |
($373,800) | ($114,454) | $0 |
* Includes only surviving veterans. Subject to appropriations.
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| None | |||
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 5 pages.
ASSUMPTION
Officials from the Department of Public Safety - Office of the Adjutant General (OTAG) state this proposal extends the application period to file for the W.W. II Veteran Recognition Awards through July 1, 2003 and directs the Adjutant General to administer the program. Under this program, veterans of W.W. II residing in Missouri on August 28, 2001 are eligible to receive a medal/medallion and certificate from the State of Missouri as appreciation for their service. OTAG assumes this program will be completed by September 30, 2003.
OTAG states this proposal will extend the eligibility of approximately 90,000 World War II veterans residing in Missouri eligible to receive W.W. II Recognition Awards who had not applied for their award by January 1, 2002. OTAG based their fiscal note estimate on the assumption that survivors of deceased veterans who had not submitted applications prior to their death are not eligible for awards.
OTAG states their computations assume that all W.W. II veterans who currently reside in Missouri were residents of Missouri at time of entering service. Since the Office of the Adjutant General's military archives maintain only war records of veterans who initially entered service from Missouri, verification of service of W.W. II veterans who entered service from states other than Missouri but currently reside in Missouri will require additional research (time/effort).
OTAG assumes the administration and the final distribution of medals would last no longer than September 30, 2003 and that all awards will be mailed to awardees, or be presented by local veteran organizations.
Information received by the Office of the Adjutant General projects that 125,000 W.W. II veterans currently live in Missouri of which only approximately 35,000 have applied for awards. OTAG originally assumed that 50% of the remaining eligible will apply for the awards. However, in an updated estimate for similar proposal, OTAG assumed approximately 50 percent of the 125,000 estimated eligible living veterans will apply for this award. Since 35,000 have submitted applications, that would leave an estimated 27,500 (125,000 / 2 = 62,500 - 35,000 = 27,500) living W.W.II veterans anticipated to apply for the award. However, the actual number of applicants could be significantly higher or lower.
The Office of the Adjutant General assumes the need for four additional full-time temporary personnel (4 FTE) to administer the program. These additional staff would include one Veterans Benefit Program Administrator (at $36,012), one Office Support Assistant (at $21,192), one Accountant I (at $30,204) and one Account Clerk II (at $23,184). Total expenses for FY 2003 estimated by OTAG are $110,592 for personal service for the four FTE, $37,699 for fringe benefits, and $148,800 in contract
ASSUMPTION (continued)
labor and supplies. OTAG assumes an additional 27,500 awards will be distributed at a revised cost estimate of $10 per award, or $270,000 in expense. OTAG also estimates total expenses of $83,298 in FY 2004.
OTAG states that this proposal will require a FY 2003 regular or supplemental spending authority to fund the program through September 2003. OTAG states that under the appropriation for FY02, the World War II Veterans Program was authorized $3,000,000 from the Veterans Commission Capitol Improvement Trust Fund. OTAG estimates that only about $400,000 from this appropriation has been expended. OTAG states they have not requested an appropriation/spending authority for FY 2003 to continue the program since the original application deadline of January 1, 2002 would have allowed them to complete everything within FY 2002. If this law is passed, this spending authority will need to be reappropriated for FY 2003 and FY 2004. Based on cost experienced by OTAG to date, funding for this program is adequate from the original $3,000,000 appropriated for FY 2002 and no additional funding will be needed.
Oversight assumes that since OTAG was not allowed additional FTE in their budgets to administer this program, OTAG will be able to continue the administration for an additional year with the current temporary employees and necessary supplies. An estimate of $50 was used for the cost of the award in 2000, however, with experience OTAG estimates the cost of the awards (including mailing) to be $10 each.
Oversight assumes the unutilized balance of the $3,000,000 appropriation from FY 2002 would sufficiently cover the additional costs resulting from this proposal. However, making the FY 2002 surplus available to be used in FY 2003 and FY 2004 would have to be executed through reappropriation budget decisions and Oversight has reflected the fiscal note as the actual anticipated costs of extending the program for 18 months. Oversight assumes that of the 27,500 awards estimated by to be given out, 20,000 will be purchased in FY 2003 at a cost of $200,000 (20,000 x $10 each) and the other 7,500 awards will be purchased in FY 2004 at a cost of $75,000 (7,500 x $10 each).
OTAG states that the reduction in the number of awards processed would not result in a reduction in the personnel and other expenses estimated to complete this program.
Officials from the Missouri Veterans' Commission (VET) assumed an additional cost to the Veterans' Commission Capital Improvements Trust Fund of $30,000 ($25,000 in FY 2003 and $5,000 in FY 2004). Figures are based upon costs incurred from the initial onset of the program. The costs estimate includes additional postage, printing, etc. involved in the distribution and submission of applications as well as personnel to assist with the additional workload.
| FISCAL IMPACT - State Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| GENERAL REVENUE FUND | |||
| Transfer Out - to the World War II Veterans' Recognition Award Fund |
($373,800) |
($114,454) |
$0 |
| ESTIMATED NET EFFECT TO THE GENERAL REVENUE FUND ** |
($373,800) |
($114,454) |
$0 |
| WORLD WAR II VETERANS' RECOGNITION AWARD FUND | |||
| Transfer In - from General Revenue | $373,800 | $114,454 | $0 |
| Costs - Adjutant General's Office | |||
| Expense and Equipment | ($148,800) | ($34,454) | $0 |
| Costs - Veterans' Commission | |||
| Expense | ($25,000) | ($5,000) | $0 |
| Medallions and Certificates * | ($200,000) | $75,000) | $0 |
| Total Costs - Veterans' Commission | ($225,000) | ($80,000) | $0 |
| ESTIMATED NET EFFECT TO THE WORLD WAR II VETERANS' RECOGNITION AWARD FUND ** |
$0 |
$0 |
$0 |
| * Includes only surviving veterans
** Subject to appropriation. |
|||
| FISCAL IMPACT - Local Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| $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 changes the deadline for filing applications for World War II medals from January 1, 2002, to July 1, 2003.
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 Public Safety
Office of the Adjutant General
Missouri Veterans Commission
Mickey Wilson, CPA
Acting Director
February 13, 2002