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 0108 - Exempts certain political subdivisions from the state prevailing wage
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 0166-04
BILL NO. SB 108
SUBJECT: Prevailing Wage
TYPE: Original
FISCAL SUMMARY
|
ESTIMATED NET EFFECT ON STATE FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| Natural Resources Dedicated Funds | Unknown | Unknown | Unknown |
| Partial Estimated
Net Effect on All State Funds* |
Unknown | Unknown | Unknown |
*Unknown savings.
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| Local Government* | Unknown | Unknown | Unknown |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 4 pages.
*Unknown savings.
FISCAL ANALYSIS
ASSUMPTION
The Office of Administration, Department of Corrections, City of Kansas City, Secretary of State's Office, Department of Agriculture, Department of Economic Development, Department of Social Services, Department of Conservation, Governor's Office, Department of Health, Department of Public Safety, State Tax Commission, Housing Authority of Kansas City, Missouri Veterans Commission, Department of Insurance, House of Representatives, Department of Labor and Industrial Relations, Department of Transportation, Lieutenant Governor's Office, Office of State Courts Administrator, and the County of Boone do not expect to be fiscally impacted.
The Department of Natural Resources (DNR) assumes that it could experience a savings as a result of this proposal, but the amount could not be estimated given the uncertainties of the nature of the contracts (i.e., actual projects, bids, specialties, etc.). The DNR assumes that there could be a labor cost savings on projects exempted from the prevailing wage law and on public works projects funded with department monies. A savings of funds would allow the department to distribute the funds to projects which may have otherwise been unfunded. Oversight has shown an unknown savings.
Oversight assumes this proposal would result in an unknown savings to political subdivisions whose voters decide to opt out of the state prevailing wage provisions that would otherwise be required on public works projects in their communities. However, the federal prevailing wage law, if applicable on a particular project, would still apply.
| FISCAL IMPACT - State Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| NATURAL RESOURCES DEDICATED FUNDS | |||
| Department of Natural Resources (DNR) | |||
| Exemption from Prevailing Wage | Unknown | Unknown | Unknown |
|
PARTIAL ESTIMATED NET EFFECT ON |
|||
| NATURAL RESOURCES DEDICATED | |||
| FUNDS | Unknown | Unknown | Unknown |
| FISCAL IMPACT - Local Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| LOCAL GOVERNMENT | |||
| Savings-Other Political Subdivisions | |||
| Exemption from Prevailing Wage Law | Unknown | Unknown | Unknown |
|
PARTIAL ESTIMATED NET EFFECT | |||
| ON LOCAL GOVERNMENT | Unknown | Unknown | Unknown |
| FISCAL IMPACT - Small Business | |||
| This proposal could have a direct fiscal impact on small businesses as a result of being exempted from the prevailing wage law. This could result in lower costs for small businesses. | |||
DESCRIPTION
The proposal would provide that upon a majority rule of the voters, political subdivisions in any county with an assessed valuation of less than $300 million dollars may choose to be excluded from the state prevailing wage law.
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 Labor & Industrial Relations
Office of Administration
Division of Design & Construction
Department of Transportation
Department of Conservation
Department of Natural Resources
Department of Corrections
Department of Economic Development
Department of Agriculture
State Courts Administrator
Department of Health
SOURCES OF INFORMATION (Cont'd)
Department of Social Services
Department of Public Safety
Governor's Office
House of Representatives
Department of Insurance
Lieutenant Governor's Office
Secretary of State
Tax Commission
Boone County
City of Kansas City
Kansas City Housing Authority
NOT RESPONDING: St. Louis County, Attorney General's Office, Higher Education, Department of Elementary and Secondary Education, Department of Mental Health, Gaming Commission, Department of Revenue, Lottery Commission, State Auditor's Office, Senate, State Treasurer's Office, City of St. Louis, Cole County, Greene County.
Jeanne Jarrett, CPA
Director
December 31, 1998