SB 0525 - Fiscal Note

Fiscal Note - SB 0525 - Establishes a legislative academy

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 2543-02

BILL NO. HCS for SB 525

SUBJECT: General Assembly

TYPE: Original

DATE: May 8, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
General Revenue	($0 to $18,202)	($0 to $72,806)	($0 to $18,202)
Total Estimated Net Effect on All State Funds	($0 to $18,202)	($0 to $72,806)	($0 to $18,202)

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
None	$0	$0	$0
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials from the Division of Legislative Research, in their response to a similar proposal, assumed the Joint Committee on Legislative Research would determine the extent of academy offerings. They estimate costs to the Division could be as much as $79,000 per academy. Funds would be requested as the Division gains experience in operating academies.

Officials from the Oversight Division assume the changes concerning analyses, evaluations and reviews would clarify existing duties. Officials assume costs for duties related to the Legislative Academy, if any, would be addressed in budget decision items.

Officials from the Department of Economic Development - Professional Registration assume the proposal would result in no fiscal impact on the department.

Officials from the House of Representatives (House) assume that the average mileage paid per week would be $40 per member. They assume that mileage under the proposal would cost approximately $11,520 ($40 x 12 weeks x 24 new members). In addition, they assume a per diem of $69 per day for four day weeks (4 days x 12 weeks = 48 days total) would cost $79,488 for FY 1999 under the proposal ($69 x 48 days x 24 new members). Costs would be $91,008 per year of academy.

Officials from the Senate assume most members elected to the Senate have already served the House and therefore may not participate in the academy. For example, they had three new members from the last election, but two members had already served the House. The Senate assumes the academy would be four days per week with per diem at $69 per day and weekly mileage at $80 per member (current average). This would result in an estimated weekly cost per attendee to be $356 [(4 x $69) + $80]. Total estimated cost assuming attendance for twelve weeks of the academy would be $4,272 ($356 x 12 weeks) per member. Assuming only one to two members attend the twelve week duration of the academy, estimated cost to the Senate would be approximately $4,272 to $8,574 ($4,272 x 2 members). Given these assumptions the costs to the Senate could be absorbed within current appropriations during the period of this fiscal note.

Oversight also assumes that costs for the academy would be split between the fiscal years during which academies would be held and that they would be held every other year beginning with FY 1999/2000.

House and Senate officials note that costs for the academy could increase beginning in FY 2002 because participation will probably increase after constitutional term limit provisions take full ASSUMPTION (continued)

effect. They also note that per diem is tied to federal per diem and will fluctuate with federal per diem fluctuations.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
GENERAL REVENUE
Cost-House of Representatives
Mileage and Per Diem	($0 to	($0 to	($0 to
	$18,202)	$72,806)	$18202)
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND	($0 to	($0 to	($0 to
	$18,202)	$72,806)	$18,202)
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
	0	0	0

FISCAL IMPACT - Small Business

No direct fiscal impact to small businesses would be expected as a result of this proposal.

DESCRIPTION

The proposal would establish a "Legislative Academy" in the office of Legislative Research. Any member of the General Assembly could attend the academy, which would be designed to familiarize members with governmental operations, public facilities, revenue, appropriations and other topics as determined by the Joint Committee on Legislative Research. The academy would meet for not less than twelve weeks between June first and November first following the end of each First Regular Session of the General Assembly.

The members attending the academy would receive the regular per diem and expenses for each day of attendance at the academy.

DESCRIPTION (continued)

The proposal would change a duty of the Committee on Legislative Research, Oversight Division, from management and program audits to fiscal analyses, performance evaluations and expenditure reviews of state and local governments receiving funds appropriated by the General Assembly.

The proposal would remove the requirement of the federal mandate report, which includes a summary of unfunded federal mandates on state and local governments.

This legislation is not federally mandated, would not duplicate any other program, would not require additional capital improvements or rental space, and would not affect total state revenue.

SOURCES OF INFORMATION

House of Representatives

Senate

Legislative Research

Oversight Division

Jeanne Jarrett, CPA

Director

May 8, 1998