SB 0773 - Fiscal Note

Fiscal Note - SB 0773 - Revision of State Merit System Law

L.R. NO.  2991-01
BILL NO.  Perfected SB 773
SUBJECT:  Office of Administration, Merit, State Departments
TYPE:     Original
DATE:     March 18, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

General Revenue          ($12,680)           ($15,416)         ($15,621)

Total Estimated
Net Effect on All
State Funds              ($12,680)           ($15,416)         ($15,621)

                   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 from the Department of Mental Health,  Department of Economic
Development, Department of Health, Department of Corrections, Department of
Natural Resources, Department of Public Safety and the Department of Social
Services stated that passage of this legislation will have no fiscal impact
on their department.

Officials from the Office of Administration reported that although it is
difficult to accurately estimate the long term fiscal impact, savings in
administrative cost are likely. The proposal will require the addition of
four new board members for the Personnel Advisory Board. Daily pay and
expenses would be required for these additional members. The current daily
rate is $65.17 per day plus travel and lodging expenses. Meeting would be
held once a month.

Officials from the Department of Labor did not respond to our fiscal impact
request.




FISCAL IMPACT-State Government     FY 1997     FY 1998     FY 1999
                               (10 Months)

GENERAL REVENUE FUND

Cost to Office of Administration

Personal Services-Board Members   ($6,680)    ($8,216)    ($8,421)

Expense and Equipment             ($6,000)    ($7,200)    ($7,200)

Total Cost to OA                 ($12,680)   ($15,416)   ($15,621)

Estimated Net Effect on General
Revenue Fund                     ($12,680)   ($15,416)   ($15,621)


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

                                        $0          $0          $0


DESCRIPTION

The bill makes numerous changes to the state personnel law.  These changes
include providing exemptions for employees of certain agencies from
provisions related to establishment of personnel administration systems based
on merit; changing reporting requirements of the Office of Administration to
the General Assembly concerning the state employee suggestion award program;
requiring the Division of Personnel to provide consultation and expertise to
all state agencies in the area of  personnel management; increasing the
number of members on the state Personnel Advisory Board from 3 to 7; changing
qualifications of the members and the procedures for operation by the
Personnel Advisory Board; and changing various provisions related to the
state employee classification plan.

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
Department of Public Safety
Department of Health
Department of Social Services
Department of Natural Resources
Department of Mental Health
Office of Administration
Department of Economic Development
Department of Natural Resources

Not Responding:  Department of Labor,