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 0793 - Limits fees charged by Revenue Department for collection of charitable contributions
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 3537-01
BILL NO. Truly Agreed to and Finally Passed SB 793
SUBJECT: Home Delivered Meals Trust Fund Administrative Costs
TYPE: Original
DATE: April 23, 1998
FISCAL SUMMARY
|
ESTIMATED NET EFFECT ON STATE FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| General Revenue | ($15,206) | ($15,206) | ($15,206) |
| Aging Elderly Home Delivered Meals Trust Fund | $15,206 | $15,206 | $15,206 |
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 1998 | FY 1999 | FY 2000 |
| None | |||
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 1998 | FY 1999 | FY 2000 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 3 pages.
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Social Services (DOS), Division of Aging (DA) assume the expenditure of available funds from the Aging Elderly Home Delivered Meals Trust Fund would increase due to the decrease in the amount the Department of Revenue could withhold for administrative costs. The increase would be provided to the Area Agencies on Aging to provide more meals to the elderly.
In the FY99 budget request, the Department of Revenue (DOR) requested appropriations of $10,800 for expense and equipment and $8,813 for personal services from the Aging Elderly Home Delivered Trust Fund to cover costs associated with collection of the contributions. The language of the proposal would limit the amount the DOR could retain from these collections to five percent. In FY 97, the DOS-Division of Aging reported the Aging Elderly Home Delivered Trust Fund received $88,147 in contributions for FY 97. Assuming the same amount of revenue in FY 99, the DOR could only retain $4,407 (i.e., 5% of $88,147) to cover the costs of collection based on this proposal. The DOR assumes that the difference would have to be appropriated from the General Revenue Fund. Therefore, the Aging Elderly Home Delivered Trust Fund would experience a savings, while the General Revenue Fund would incur additional costs.
Assuming that administrative costs would remain relatively constant, Oversight has shown the difference of $15,206 ($19,613 - $4,407) as a savings to the Aging Elderly Home Delivered Trust Fund and as a cost to the General Revenue Fund for the same amount each year. However, the actual fiscal impact would be dependent upon the level of collections.
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| GENERAL REVENUE FUND | |||
| Costs - Department of Revenue (DOR) | |||
| Difference in Administrative Costs | |||
| Not Funded from the Aging Elderly | |||
| Home Delivered Meals Trust Fund | ($15,206) | ($15,206) | ($15,206) |
|
ESTIMATED NET EFFECT ON | |||
| GENERAL REVENUE FUND | ($15,206) | ($15,206) | ($15,206) |
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| (continued) | |||
| AGING ELDERLY HOME DELIVERED | |||
| MEALS TRUST FUND | |||
| Savings | |||
| Difference in DOR Administrative Costs | |||
| No Longer Funded | $15,206 | $15,206 | $15,206 |
|
ESTIMATED NET EFFECT ON | |||
| AGING ELDERLY HOME | |||
| DELIVERED MEALS TRUST FUND | $15,206 | $15,206 | $15,206 |
| FISCAL IMPACT - Local Government | FY 1998 | FY 1999 | FY 2000 |
| $0 | $0 | $0 | |
| FISCAL IMPACT - Small Business | |||
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This proposal relates to contributions by individuals or corporations to the Division of Aging Elderly Home Delivered Meals Trust Fund. When contributions are made through state income tax forms, the Department of Revenue shall transfer money to the state treasury less an amount not to exceed five percent of the contribution in order to cover the costs of collection and
handling. Current law places no limit on handling and collection costs.
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 Social Services
Department of Revenue
Jeanne Jarrett, CPA
Director
April 23, 1998