This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0643 - Enabling Language for Creation of Dept. of Aging
L.R. NO. 2311-02
BILL NO. Perfected SB 643
SUBJECT: State Department: Aging
TYPE: Original
DATE: March 6, 1996
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
General Revenue ($34,800) to ($34,800) to
$0 ($348,000) ($348,000)
Other Funds* $0 $0 $0
Total Estimated
Net Effect on All ($34,800) to ($34,800) to
State Funds** $0 ($348,000) ($348,000)
*Other Funds include Child Support Enforcement Collections Fund,
Administrative Trust Fund, Educational Improvement Fund, Health Initiatives
Fund, Blind Pension Fund and Nursing Facility Quality of Care Fund.
**Others and costs not included. The costs indicated are new costs only.
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
Federal ($65,200) to ($65,200) to
$0 ($652,000) ($652,000)
Total Estimated
Net Effect on All ($65,200) to ($65,200) to
Federal Funds* $0 ($652,000) ($652,000)
*Other savings and costs not included. The costs indicated are new costs
only.
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Based on a earlier version, Oversight assumes that the Office of
Administration (OA), Division of Personnel would not incur any costs. If any
costs were to be incurred, the costs would be absorbed with existing
resources.
The Department of Health (DOH) and the Department of Mental Health (DMH) do
not expect to be fiscally impacted.
The Department of Social Services (DOS) anticipates a savings of $67,768,300
which is equivalent to the total appropriations for the Division of Aging
(DA). Additionally, DOS indicated that a savings would occur related to
support staff being transferred to the new department as well as a portion of
HB 13 which pertains to leases, related services and utilities. DOS
believes that these two components cannot not be quantified at this time, and
as such, the savings would be unknown.
For purposes of this fiscal note, Oversight has used HB 11, minus the
Governor's vetoes, to show the savings to the Department of Social Services,
Division of Aging. Total savings were estimated at $74,964,104 in FY98 and
$75,675,863 in FY99. Personal services were inflated 2.5%; fringe benefits
were calculated at 30.74%; and expense & equipment were inflated 3%. It was
assumed that the personal services/expense & equipment and program
disbursement appropriations would not be inflated.
Savings to the support divisions were calculated based on the difference
between the 725 FTE indicated in the proposal and DA's current number of FTE
(696.43). The difference is 28.57 FTE which is 3.94% of the total. Applying
the 3.94% to the support divisions appropriations, total savings would be
$1,456,989 in FY98 and $1,468,720 in FY99. Personal services were inflated
2.5%: fringe benefits were calculated at 30.74%; and expense & equipment were
inflated 3%. It was assumed that the personal services/expense & equipment
and program disbursement appropriations would not be inflated.
Savings related to HB 13 (i.e., leases, related services and utilities) were
calculated based the distribution of DA staff and costs developed by the
Office of Administration (OA). According to DOS, 128 of DA's FTE are located
in the metro areas, with 568.43 FTE located throughout the remainder of the
state. OA guidelines estimate janitorial/trash costs at $.80 per square
foot; utilities costs at $1.60 per square foot; and rental costs at $11.81
per square foot for the metro areas and $8.96 per square foot for outstate.
Combining these components and allowing 200 square feet per FTE as in OA
guidelines, total savings related to HB 13 would be $1,678,762 in FY98 and
$1,726,383 in FY99. FY98 and FY99 were inflated 3%.
The savings shown to DOS have also been shown as costs to the new Department
of Aging. Additionally, the Office of Administration, Division of Budget &
Planning provided Oversight with historical data on the creation of new
departments. Approximate costs to create the Department of Insurance were
$994,090, the Department of Health - $840,000 and the Department of
Corrections - $1,746,000. These costs included new FTE, data processing
equipment, moving expenses, new phone lines and position salary adjustments.
Based on this information, there could conceivably be additional costs for
the creation of the Department of Aging, but the amount would be unknown.
For purposes of this fiscal note, costs were ranged from $100,000 to
$1,000,000 for FY98 and FY99. Costs were split 34.8% general revenue and
65.2% federal.
Given the language of the proposal which limits the total number of FTE to
725 and the number of support staff which could be transferred from DOS,
costs for new FTE would not be included. However, it is conceivable that
salary position adjustments and contracting costs for additional support
staff and data processing support could occur. Moving costs and new phone
line expenses could be avoided if the Department of Aging does not relocate.
Oversight assumes that any costs which might occur as a result of the
development of a unified service delivery system with the Department of
Mental Health (DMH) and Health (DOH) could be absorbed in the existing costs
previously estimated .
FISCAL IMPACT - State Government FY 1997 FY 1998 FY 1999
(10 Mo.)
GENERAL REVENUE FUND
Savings-Department of Social Services
Division of Aging (DA)
Regular Appropriations
Personal Service (242.36 FTE) $0 $8,462,815 $8,674,385
Fringe Benefits $0 $2,601,469 $2,666,506
Expense and Equipment $0 $999,319 $1,029,299
Program Disbursement $0 $13,929,682 $13,929,682
Total Savings-DA $0 $25,993,285 $26,299,872
Savings-Division of Aging (DA)
From Support Divisions
Personal Service (10.44 FTE) $0 $112,417 $115,228
Fringe Benefits $0 $34,557 $35,421
Expense and Equipment $0 $20,451 $21,065
Personal Services/Expense & Equipment $0 $148,540 $148,540
Program Disbursements $0 $25,957 $25,957
Total Savings-DA $0 $341,922 $346,211
Savings-Division of Aging
From HB13 (Leases, Related Services
and Utilities)
Expense & Equipment $0 $529,674 $545,565
Costs-Department of Aging
Regular Appropriations
Personal Service (242.36 FTE) $0 ($8,462,815) ($8,674,385)
Fringe Benefits $0 ($2,601,469) ($2,666,506)
Expense and Equipment $0 ($999,319) ($1,029,299)
Program Disbursement $0 ($13,929,682) ($13,929,682)
Total Costs-Aging $0 ($25,993,285) ($26,299,872)
Costs-Department of Aging
From Support Divisions
Personal Service (10.44 FTE) $0 ($112,417) ($115,228)
Fringe Benefits $0 ($34,557) ($35,421)
Expense & Equipment $0 ($20,451) ($21,065)
Personal Services/Expense & Equipment $0 ($148,540) ($148,540)
Program Disbursements $0 ($25,957) ($25,957)
Total Costs-Aging $0 ($341,922) ($346,211)
Costs-Department of Aging
HB 13 (Leases, Related Services
and Utilities)
Expense & Equipment $0 ($529,674) ($545,565)
Costs-Department of Aging
New costs incurred as a result
of the creation of the Department $0 ($34,800) ($34,800)
to to
($348,000) ($348,000)
ESTIMATED NET EFFECT ON $0 ($34,800) ($34,800)
GENERAL REVENUE FUND to to
($348,000) ($348,000)
FEDERAL FUNDS
Savings-Department of Social Services
Division of Aging (DA)
Regular Appropriations
Personal Service (454.07 FTE) $0 $10,298,967 $10,556,441
Fringe Benefits $0 $3,165,902 3,245,050
Expense and Equipment $0 $2,284,986 $2,353,536
Personal Services/Expense & Equipment $0 $992,875 $992,875
Program Disbursement $0 $29,987,752 $29,987,752
Total Savings-DA $0 $46,730,482 $47,135,654
Savings-Division of Aging (DA)
From Support Divisions
Personal Service (18.13 FTE) $0 $195,154 $200,033
Fringe Benefits $0 $59,990 $61,490
Expense and Equipment $0 $35,503 $36,568
Personal Services/Expense & Equipment $0 $609,192 $609,192
Program Disbursement $0 $45,062 $45,062
Total Savings-DA $0 $944,901 $952,345
Savings-Division of Aging
From HB 13 (Leases, Related Services
and Utilities)
Expense & Equipment $0 $1,057,667 $1,089,397
Costs-Department of Aging
Regular Appropriations
Personal Service (454.07 FTE) $0 ($10,298,967) ($10,556,441)
Fringe Benefits $0 ($3,165,902) ($3,245,050)
Expense and Equipment $0 ($2,284,986) ($2,353,536)
Personal Services/Expense & Equipment $0 ($992,875) ($992,875)
Program Disbursement $0 ($29,987,752) ($29,987,752)
Total Costs-Aging $0 ($46,730,482) ($47,135,654)
Costs-Department of Aging
From Support Divisions
Personal Service (18.13 FTE) $0 ($195,154) ($200,033)
Fringe Benefits $0 ($59,990) ($61,490)
Expense and Equipment $0 ($35,503) ($36,568)
Personal Services/Expense & Equipment $0 ($609,192) ($609,192)
Program Disbursement $0 ($45,062) ($45,062)
Total Costs-Aging $0 ($944,901) ($952,345)
Costs-Department of Aging
From HB 13 (Leases, Related Services
and Utilities)
Expense & Equipment $0 ($1,057,667) ($1,089,397)
Costs-Department of Aging
New costs incurred as the result
of the creation of the Department $0 ($65,200) ($65,2500)
to to
($652,000) ($652,000)
ESTIMATED NET EFFECT ON $0 ($65,200) ($65,200)
FEDERAL FUNDS to to
$0 ($652,000) ($652,000)
OTHER FUNDS
Savings-Department of Social Services
Division of Aging (DA)
Program Disbursement
Nursing Facility Quality of Care
Fund $0 $1,661,611 $1,661,611
Aging Donations $0 $50,000 $50,000
Meals Tax Checkoff Fund $0 $100,000 $100,000
Total Savings-DA $0 $1,811,611 $1,811,611
Savings-Division of Aging (DA)
From Support Divisions
Personal Services/Expense & Equipment
Child Support Enforcement
Collections Fund $0 $97,482 $97,482
Administrative Trust Fund $0 $65,711 $65,711
Educational Improvement Fund $0 $5,013 $5,013
Health Initiatives Fund $0 $1,920 $1,920
Nursing Facility Quality of Care
Fund $0 $38 $38
Total Savings-DA $0 $170,164 $170,164
Savings-Division of Aging (DA)
From HB13 (Leases, Related Services
and Utilities)
Expense & Equipment
Child Support Enforcement
Collections Fund $0 $88,156 $88,156
Health Initiatives Fund $0 $2,285 $2,285
Blind Pension Fund $0 $980 $980
Total Savings-DA $0 $91,421 $91,421
Costs-Department of Aging
Program Disbursement
Nursing Facility Quality of Care
Fund $0 ($1,661,611) ($1,661,611)
Aging Donations $0 ($50,000) ($50,000)
Meals Tax Checkoff Fund $0 ($100,000) ($100,000)
Total Costs- Aging $0 ($1,811,611) ($1,811,611)
Costs-Department of Aging
From Support Divisions
Personal Services/Expense & Equipment
Child Support Enforcement
Collections Fund $0 ($97,482) ($97,482)
Administrative Trust Fund $0 ($65,711) ($65,711)
Educational Improvement Fund $0 ($5,013) ($5,013)
Health Initiatives Fund $0 ($1,920) ($1,920)
Nursing Facility Quality of Care
Fund $0 ($38) ($38)
Total Costs-Aging $0 ($170,164) ($170,164)
Costs-Department of Aging
From HB13 (Leases, Related Services
and Utilities)
Expense & Equipment
Child Support Enforcement
Collections Fund $0 ($88,156) ($88,156)
Health Initiatives Fund $0 ($2,285) ($2,285)
Blind Pension Fund $0 ($980) ($980)
Total Costs-Aging $0 ($91,421) ($91,421)
ESTIMATED NET EFFECT ON
OTHER FUNDS $0 $0 $0
FISCAL IMPACT - Local Government FY 1997 FY 1998 FY 1999
(10 Mo.)
$0 $0 $0
DESCRIPTION
The proposal would create the Department of Aging and charge it with the
duties and responsibilities currently vested in the Department of Social
Services (DOS), Division of Aging (DA). DA would be transferred to the
Department of Aging by a type I transfer. Appropriations for the Department
of Aging would be determined in the same appropriations bill as the DOS.
The Department of Aging would be authorized to employ all support personnel
which is currently provided to DA by DOS including, data processing, budget
and finance, general services and legal services personnel. The director
would be required to appoint and employ clerks, clerical and other personnel
necessary, but the total number of employees within the department could not
exceed 725.
The Departments of Aging, Social Services, Health and Mental Health would be
required to develop a unified service delivery system which would include,
but is not limited to a single application form. The unified service
delivery system would be used as a single point of entry for serving the
medical and health needs of older persons. The Departments of Aging, Social
Services, Health and Mental Health and the Divisions of Medical Services and
Family Services would develop agreements and protocols for sharing
application forms and information and for insuring the timely processing of
all applications.
The director would be appointed by the Governor with the advice and consent
of the Senate. The director would serve at the pleasure of the Governor and
the director's salary would not exceed appropriations for such purposes.
The Department of Aging could adopt, appeal and amend rules to carry out its
duties as assigned.
This proposal would become effective on July 1st following the adoption of a
constitutional amendment.
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 Social Services
Department of Health
Department of Mental Health
Office of Administration
Division of Personnel