This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0600 - Requires statutory or constitutional authority for political subdivisions to participate in federal programs
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 2567-02
BILL NO. SB 600
SUBJECT: Federal-State Relations: Political Subdivisions
TYPE: Original
DATE: January 29, 1998
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS Net Effect on All State Funds
FUND AFFECTED
FY 1999
FY 2000
FY 2001
Total Estimated
$0
$0
$0
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| Total Estimated
Net Effect on All Federal Fund |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| Local Government | $0 or (Unknown) | $0 or (Unknown) | $0 or (Unknown) |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 4 pages.
FISCAL ANALYSIS
Officials of the Department of Mental Health, the State Auditor, and the Office of Administration-Division of Budget and Planning stated the proposal would not affect their agencies.
Officials of the Department of Labor and Industrial Relations note that their Division of Employment Security (DES) is part of an inter-departmental management team administering Missouri's five-year federal grant (beginning in 1996) for the School-to-Work program. The DES anticipates receiving $84,000 per year in federal funds for administrative costs. They also note that prohibiting political subdivisions from participating in the School-to-Work program unless allowed by law would put Missouri's program out of compliance with federal law and could cause Missouri to lose moneys from the grant.
Officials of the Department of Economic Development noted over $40,000,000 per year of federal funds being distributed to or through political subdivisions which, depending upon how section 16 or article VI of the state constitution is applied, could require statutory or constitutional permission to be continued when the programs expire.
Officials of the Department of Health noted that the proposal would prevent the Department from receiving any new federal funds which would be distributed through political subdivisions (e.g. Local Public Health Agencies) unless the Department could find substitute contractors or receive case by case statutory permission to use political subdivisions as contractors.
Officials of the Department of Elementary and Secondary Education noted that the proposal would not affect that agency's budget request, but could affect school districts participating in the School-to-Work program.
Officials of the City of St. Louis report that agencies of the City participation federal programs amount to about $100,000,000 per year. Unless statutory approval is received, those programs need to be renewed will expire with a resulting loss of funds. The City would need statutory approval to enter into new programs with federal financial participation. They note that the proposed expansion of Lambert-St. Louis International Airport would qualify for 75% federal participation or about $1,500,000,000.
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| FEDERAL FUNDS | |||
| Savings-Department of Labor | |||
| School-to-Work Administration | $84,000 | $84,000 | $81,000 |
| Loss-Department of Labor | |||
| Grants for School-to-Work Administration | ($84,000) | ($84,000) | ($81,000) |
| NET EFFECT ON FEDERAL FUNDS | $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| POLITICAL SUBDIVISIONS | |||
| Loss-Federal Grants* | $0 | $0 | $0 |
| or | or | or | |
| (unknown) | (unknown) | (unknown) | |
| *Depending on statutory or constitutional approval. | |||
| FISCAL IMPACT - Small Business | |||
Small businesses which perform services for political subdivisions which pay with federal funds could be affected by this proposal.
DESCRIPTION
This proposal would forbid any political subdivision from participating in any federal government agency administered or sponsored program, unless allowed to do so by statute or the state constitution.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. This legislation would not affect Total State Revenue.
SOURCES OF INFORMATION
Department of Economic Development
Department of Elementary and Secondary Education
Department of Health
Department of Labor and Industrial Relations-Division of Employment Security
Department of Mental Health
Office of Administration-Division of Budget and Planning
State Auditor
City of St. Louis
Not Responding: Columbia School District; St. Louis County; St. Charles County; Jackson County
Jeanne Jarrett, CPA
Director
January 29, 1998