This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0698 - Establishes State-Owned Veterans' Cemetery in Springfield
L.R. NO. 2539-01
BILL NO. SB 698
SUBJECT: Veterans' Cemetery
TYPE: Original
DATE: February 6, 1996
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
General Revenue $0 $0
Fund to to
$0 ($75,680) ($1,624,445)
Total Estimated
Net Effect on All
State Funds $0 $0
to to
$0 ($75,680) ($1,624,445)
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
Federal Funds
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 State Tax Commission assume that this proposal would have no
direct fiscal impact to their agency. They assumed that eighty acres of land
in Springfield would cost approximately $10,000/acre, or $80,000.
Officials of the City of Springfield stated that they had adopted an
ordinance authorizing the City of Springfield, Missouri, to convey
approximately forty-nine acres of land owned by the city to the State of
Missouri for the purpose of establishing a veterans' cemetery. City of
Springfield officials stated that because this land is currently owned by the
city, there would be no loss in tax revenues as a result of this proposal.
Officials of the Missouri Veterans Commission (MVC) stated that through
contacts with the Federal Cemetery Grant Program and other states currently
operating state cemeteries, their office has determined that the cost to
develop a state veterans cemetery would be approximately three million
dollars. This cost would include land acquisition, planning and development,
and all machinery required for operations. MVC officials assumed the Federal
Cemetery Grant Program would pay half of that cost leaving $1.5 million as
the state's share. The appraised value of the land, even if donated could be
used to offset up to 50% of the state costs.
MVC officials assume the annual cost to operate a state cemetery would be
from $300,000 to $450,000 depending on the size and the number of graves to
be maintained. The cost of operations would increase over time as the number
of graves increased. MVC officials assumed that initially they would request
six (6) FTE and increase to nine (9) FTE by the tenth year of operations.
The cost of operations would be partially offset by the VA plot allowance of
$150 per internment of eligible veterans. MVC staff assumed approximately
60% of internments would be eligible veterans. The Springfield National
Cemetery has had about 475 internments per year. Assuming that trend
continued, the cost of operations would be partially offset by about $42,750
per year.
MVC officials assume that the best case scenario for the development of a
state veterans cemetery is the pre-application would need to be filed by July
1, 1997. The earliest possible date of Veterans Administration (VA) funding
would be October of 1997. Hiring of consultants, selection of architects,
and bidding could conceivably be completed by July of 1998. Construction
would require approximately one year making the completion date around July
of 1999. MVC officials emphasized that this would be a best case situation
and that in all probability the completion would require more time depending
on the number of applications received and the availability of VA funds.
Delays could also result from the outcomes of environmental impact studies,
historic site evaluations, zoning ordinances, etc.
MVC officials assumed that there would be long-range effect on General
Revenue Fund as follows:
ITEM FY 2000
Salary - Cemetery Manager $ 44,153
Salary - Clerk Typist II $ 17,246
Salary - Labor Supervisor $ 19,909
Salary - 3 Laborer II's $ 51,738
Fringe Benefits $ 41,510
Operating Costs (less salaries) $194,772
VA Plot Allowance ($42,750)
Total $326,578
MVC officials assumed that under the best case scenario, in FY98 they would
be in the planning and construction stages and would request one (1) Cemetery
Manager ($40,000) and one (1) Clerk Typist II ($15,624). Using that same
assumption, MVC officials stated that they would add one (1) Labor Supervisor
($18,036) and three (3) Laborer II's ($15,624) for six months in FY99.
Oversight assumed for purposes of this fiscal note, that some of the land
needed for a veterans' cemetery could be donated based on the City of
Springfield's response. In a similar proposal, it was assumed that a
standard acreage for a cemetery was eighty acres. State Tax Commission
assumed that land in Springfield would cost $10,000 per acre. A purchase of
eighty acres would be $80,000. A federal grant could be received for 50% of
the state costs. A breakdown of the land acquisition portion of the
$3,000,000 costs for land acquisition, planning and development, and
machinery required for operations estimated by the Federal Grant Cemetery
Program was not available. Based on that information and the fact that MVC's
estimates were on a best case scenario in regard to time frames, Oversight
has shown costs as a range from zero to MVC's maximum assumed costs. There
would be long-term fiscal impact due to this proposal in the form of on-going
operational costs for a veterans' cemetery which could be partially offset by
a VA plot allowance.
FISCAL IMPACT - State Government FY 1997 FY 1998 FY 1999
(10 Mo.)
GENERAL REVENUE FUND
Cost-Missouri Veterans Commission (MVC)
Personal Service (0, 0-2 FTE, 0-4 FTE) $ 0 ($ 0 ($ 0
to to
$58,440) $94,851)
Fringe Benefits $ 0 ($ 0 ($ 0
to to
$17,240) $29,594)
Land acquisition, planning and development,
machinery $ 0 $ 0 ($ 0
to
_________ _________ $1,500,000)
Total Cost-Missouri Veterans Commission $ 0 ($ 0 ($ 0
to to
$75,680) $1,624,445)
ESTIMATED NET EFFECT TO
GENERAL REVENUE FUND $ 0 ($ 0 ($ 0
to to
$75,680) $1,624,445)
FEDERAL FUNDS
Income-Missouri Veterans Commission
Federal Cemetery Grant $ 0 $ 0 $ 0
to
$1,500,000
Cost-Missouri Veterans Commission
Land acquisition, planning and development, $ 0 $ 0 ($ 0
machinery to
$1,500,000)
NET EFFECT ON FEDERAL FUNDS $ 0 $ 0 $ 0
FISCAL IMPACT - Local Government FY 1997 FY 1998 FY 1999
(10 Mo.)
0 0 0
DESCRIPTION
This proposal would require the establishment of a state-owned veterans'
cemetery in Springfield, Missouri. The Executive Director of the Missouri
Veterans' Commission would be given the authority to take actions necessary
for the establishment of the cemetery.
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
State Tax Commission
Missouri Veterans Commission
City of Springfield