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 0869 - Performance based budgeting and appropriation requests
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 2753-02
BILL NO. SB 869
SUBJECT: Appropriations
TYPE: Original
DATE: February 15, 1998
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS Net Effect on All State Funds
FUND AFFECTED
FY 1999
FY 2000
FY 2001 General Revenue
($89,969)
($101,751)
($245,601) Workers' Compensation
($3,933)
($4,546)
($4,682) Crime Victims
Compensation
($191)
($221)
($228) Total Estimated
($94,093)
($106,518)
($250,511)
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| ($30,495) | ($35,259) | ($36,309) | |
| Total Estimated
Net Effect on All Federal Funds |
($30,495) | ($35,259) | ($36,309) |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 7 pages.
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| Local Government | $0 | $0 | $0 |
FISCAL ANALYSIS
ASSUMPTION
Officials of the office of the Governor stated that the proposal would not affect their office, administratively.
Officials of the following agencies stated that their agencies' budget analysts are already doing strategic planning under Office of Administration budget preparation guidelines and feel, at this time, that they can absorb additional duties caused by this proposal with existing resources: Department of Revenue, Department of Health, Department of Agriculture, Department of Social Services, and Department of Mental Health.
Officials of the Office of Administration stated that the requirements of this proposal, to conduct twelve public meetings every two years on the effectiveness and efficiency of state government and to evaluate agency objectives could be accomplished most efficiently through contracts, thus eliminating requirements for state FTE. Oversight assumes that evaluation of agency objectives would begin in FY 2001.
Officials of the Department of Labor and Industrial Relations stated that budgetary analysis for their agency is currently done by staff with other duties. They would request one Budget Analyst due to the requirement that the Department participate in the work force development joint strategic plan. The position would be funded according to the Department's federal cost allocation plan: 5.62%-General Revenue, 10.72%-Workers' Compensation, .52%-Crime Victims' Compensation, and 83.14%-Federal.
Officials of the Department of Transportation would request a Senior Budget Analyst to develop and track performance measures.
Officials of the Department of Public Safety, the Department of Elementary and Secondary Education, and the Missouri Department of Conservation indicated that they could not estimate the fiscal impact of this proposal on their agencies. Officials of the Department of Natural Resources indicated that because their agency is not part of the one mandated joint strategic plan, there would be no impact on their agency at this time.
ASSUMPTION (continued)
For purposes of this fiscal note, Oversight assumes the departments of education would require an additional budget analyst due to the work force development joint strategic plan and that the analysts would monitor agency success in meeting goals and help prepare agency budget requests based on that success.
Oversight assumes other agencies have developed strategic plans in accordance with OA guidelines and would not require additional resources to revise guidelines, if necessary, after
meeting with appropriate legislative committees. Agencies would request resources as needed through the normal budget process (including supplemental budget requests) as the Office of Administration developed other areas for joint strategic planning.
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| GENERAL REVENUE FUND | |||
| Cost - Office of Administration (OA) | |||
| Expense and Equipment | |||
| Meetings | |||
| 6 meetings (1 day) | $ 3,000 | $ 3,000 | $ 3,000 |
| preparation with state officials (1 week) | 1,250 | 1,250 | 1,250 |
| preparing report (2 days per meeting) | 6,000 | 6,000 | 6,000 |
| advertising (2 ads in 12 papers) | 4,300 | 4,300 | 4,300 |
| Meeting Costs | ($14,550) | ($14,550) | ($14,550) |
| Evaluations Contracts | |||
| Project Director | $0 | $0 | $40,000 |
| Clerical and Technical | 0 | 0 | 20,000 |
| Fringe Benefits | 0 | 0 | 18,000 |
| Postage/Communications | 0 | 0 | 10,000 |
| Travel/Office Expenses | 0 | 0 | 5,000 |
| Data Processing/Computer Time | 0 | 0 | 20,000 |
| Overhead | 0 | 0 | 28,250 |
| Contract Cost | $0 | $0 | ($141,250) |
| OA Administrative Cost | ($14,550) | ($14,550) | ($155,800) |
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| (continued) | (10 Mo.) | ||
| Cost - Department of Elementary and Secondary Education (DESE) | |||
| Personal Service (1 FTE) | $ 26,610 | $32,890 | $ 33,877 |
| Fringe Benefits | 7,459 | 9,219 | 9,496 |
| Expense and Equipment | 2,610 | 300 | 300 |
| DESE Administrative Cost | ($ 36,679) | ($ 42,409) | ($ 43,673) |
| Cost - Coordinating Board for Higher (CBHE) | |||
| Personal Service (1 FTE) | $ 26,610 | $32,890 | $ 33,877 |
| Fringe Benefits | 7,459 | 9,219 | 9,496 |
| Expense and Equipment | 2,610 | 300 | 300 |
| CBHE Administrative Cost | ($ 36,679) | ($ 42,409) | ($ 43,673) |
| Cost - Department of Labor and Industrial Relations (DOLIR) | |||
| Personal Service (.0562 FTE) | $ 1,495 | $ 1,848 | $ 1,904 |
| Fringe Benefits | 419 | 518 | 534 |
| Expense and Equipment | 147 | 17 | 17 |
| DOLIR Administrative Cost | ($ 2,061) | ($ 2,383) | ($ 2,455) |
| NET EFFECT ON GENERAL | |||
| REVENUE FUND | ($89,969) | ($101,751) | ($245,601) |
| WORKERS' COMPENSATION FUND | |||
| Cost - Department of Labor and Industrial Relations (DOLIR) | |||
| Personal Service (.1072 FTE) | $ 2,853 | $ 3,526 | $ 3,632 |
| Fringe Benefits | 800 | 988 | 1,018 |
| Expense and Equipment | 280 | 32 | 32 |
| DOLIR Administrative Cost | ($ 3,933) | ($ 4,546) | ($ 4,682) |
| NET EFFECT ON WORKERS' | |||
| COMPENSATION FUND | ($ 3,933) | ($ 4,546) | ($ 4,682) |
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| (continued) | (10 Mo.) | ||
| CRIME VICTIMS' COMPENSATION FUND | |||
| Cost - Department of Labor and Industrial Relations (DOLIR) | |||
| Personal Service (.0052 FTE) | $ 138 | $ 171 | $ 176 |
| Fringe Benefits | 39 | 48 | 49 |
| Expense and Equipment | 14 | 2 | 2 |
| DOLIR Administrative Cost | ($ 191) | ($ 221) | ($ 228) |
| NET EFFECT ON CRIME VICTIMS' | |||
| COMPENSATION FUND | ($ 191) | ($ 221) | ($ 228) |
| FEDERAL FUNDS | |||
| Cost - Department of Labor and Industrial Relations (DOLIR) | |||
| Personal Service (.8314 FTE) | $ 22,124 | $ 27,345 | $ 28,165 |
| Fringe Benefits | 6,201 | 7,665 | 7,895 |
| Expense and Equipment | 2,170 | 249 | 249 |
| DOLIR Administrative Cost | ($ 30,495) | ($ 35,259) | ($ 36,309) |
| NET EFFECT ON FEDERAL FUNDS | ($ 30,495) | ($35,259) | ($ 36,309) |
| FISCAL IMPACT - Local Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| 0 | 0 | 0 | |
FISCAL IMPACT - Small Business
No direct fiscal effect on small businesses would be expected due to this proposal.
DESCRIPTION
This proposal would make Missouri's appropriations into a performance based budgeting
DESCRIPTION (continued)
process. Agencies would base all budget requests on strategic plans which establish quantifiable
outcomes. Funding would be tied to performances relative to stated objectives.
The Office of Administration (OA) would conduct a series of public meetings to get citizens' reactions to current state government programs. OA officials would file a report the results of the meetings and recommendations based upon meeting finding the appropriations committees of the General Assembly on or before October 1, 1999.
The proposal contains a schedule for converting the budget process:
1) agencies would prepare a draft of a strategic plan by 1 January 1999,
2) agencies would submit a budget request for at least one program incorporating measurable objectives by 30 September 1999,
3) agencies would, by 30 September 1999, identify, in consultation with appropriate legislative committees, one or more programs within a policy area which affects more than one agency and develop measurable objectives and coordinated strategies for achieving the objectives,
4) the State Budget Director and the Appropriations Committees would, by 31 December 1999, develop a plan to group agencies by policy areas with common goals and objectives,
5) beginning 30 September, 2000, all state agencies within each policy area would develop joint strategic plans which they would submit to The Budget Director and appropriate standing committees of the General Assembly, and
6) beginning 30 September 2001 (and annually thereafter), budget requests would include and make reference to, strategic plans and measurable objectives.
Work force development would be the initial policy area included in the joint strategic plan developed by the departments of Elementary and Secondary Education, Higher Education, Economic Development, Social Services, Mental Health and Labor and Industrial Relations. The plan would be due by October 1, 1999.
The Office of Administration would conduct detail base review evaluations of agencies'
success in achieving stated objectives. The Commissioner could contract this responsibility to a non-governmental entity to insure the completion of an independent review.
On or before 1 October 2000, and annually thereafter, the Commissioner would report evaluation
DESCRIPTION (continued)
results to the appropriation committees of the General Assembly.
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
Office of Administration
Department of Agriculture
Department of Conservation
Department of Economic Development
Department of Elementary and Secondary Education
Department of Health
Department of Transportation
Department of Labor and Industrial Relations
Department of Mental Health
Department of Natural Resources
Department of Public Safety
Department of Revenue
Department of Social Services
Governor
Not Responding: Department of Higher Education, Department of Insurance, Department of Corrections
Jeanne Jarrett, CPA
Director
February 15, 1998