SB 0636 - Fiscal Note

Fiscal Note - SB 0636 - Places Dept. of Revenue Employees Under Merit System

L.R. NO.  2484-01
BILL NO.  SB 636
SUBJECT:  Office of Administration, Merit System, Department of Revenue
TYPE:     Original
DATE:     January 10, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999
General Revenue         ($123,602)          ($103,981)        ($106,516)

Total Estimated
Net Effect on All
State Funds             ($123,602)          ($103,981)        ($106,516)

                   ESTIMATED NET EFFECT ON FEDERAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999
None

Total Estimated
Net Effect on All
Federal Funds                   $0                  $0                $0

                    ESTIMATED NET EFFECT ON LOCAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999
Local Government                $0                  $0                $0


                              FISCAL ANALYSIS

ASSUMPTION

Officials of the Office of Administration - Division of Personnel (OA) stated
that as of December 31, 1994, DOR had a total of 2,200 employees and the
merit system had approximately 31,491 total employees.  Based on those
statistics, OA assumed that the workload of their office would increase by
7%.

OA staff received 131,072 applications for classes received during FY94; 7%
would increase those applications by 9,175.  OA officials also assumed that
job opportunity announcements would need to be issued, recruitment activities
initiated, data entry and correspondence performed, and related activities in
relation to the increase in the number of applications.  OA officials assumed
that they would request one (1) Personnel Analyst II and two Clerk Typist
II's to perform the increased workload related to those functions.  OA staff
would request one (1) Personnel Analyst II would be requested to develop,
revise, monitor, and maintain selection procedures for the DOR and to consult
with them and advise the agency on selections issues.  OA officials estimated
the personnel/pay transaction audit actions and the actions required for the
certification and maintenance of registers of eligible candidates would
increase by a minimum of 7%.  This was based not only on the addition of
2,200 employees, but also on a turnover rate of 13.7% for DOR as listed on a
COMAP report on turnover by department (1/1/93 - 12/31/93).  OA officials
would request one (1) Clerk Typist III and two (2) Clerk Typist II's would be
requested to handle the increased workload in those areas.  OA officials
would request a total of seven (7) new FTEs.

Oversight assumed that DOR would need three (3) fewer FTEs in their personnel
unit because OA would be processing applications, issuing job announcements,
performing recruitment activities, data entry and correspondence and other
personnel related duties for DOR as a result of this proposal.  Oversight has
shown a savings of three (3) FTEs to General Revenue in DOR.

Officials from the State Emergency Management Agency, Capitol Police,
Department of Labor-Division of Labor Standards,  and the Department of Labor
state that passage of this legislation will have no fiscal impact on their
department.

Officials from the Department of Economic Development and the Department of
Revenue did not respond to our fiscal impact request.

Officials from the Department of Revenue responded to a similar fiscal note
last session and reported that it would not have a fiscal impact on their
agency.

FISCAL IMPACT - State Government         FY 1997   FY 1998   FY 1999
                                        (10 Mo.)
GENERAL REVENUE FUND

Savings-Department of Revenue (DOR)
  Personal Service (3 FTE)               $55,891   $68,745   $70,464
  Fringe Benefits                         17,181    21,132    21,660
  Expense and Equipment                    2,099     2,596     2,673

Total Savings-DOR                        $75,171   $92,473   $94,797

Cost-Office of Administration's (OA)
Division of Personnel
  Personal Service (7 FTE)            ($123,841)($148,609)($152,325)
  Fringe Benefits                       (38,069)  (45,682)  (46,825)
  Expense and Equipment                 (37,223)   (2,163)   (2,163)

Total Cost-OA's Division of Personnel ($198,773)($196,454)($201,313)

ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND                  ($123,602)($103,981)($106,516)


FISCAL IMPACT - Local Government         FY 1997   FY 1998   FY 1999
                                        (10 Mo.)

                                              $0        $0        $0


DESCRIPTION

This proposal would place the Department of Revenue under the State Personnel
Law.

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
Department of Labor
Department of Public Safety

Not Responding:  Department of Economic Development, Department of Revenue