COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 0730-03
Bill No.: SB 287
Subject: Education, Elementary and Secondary; Employees-Employers; Labor and Management; Salaries; Workers Compensation
Type: Original
Date: February 12, 2003
FISCAL SUMMARY
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on General Revenue Fund |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on Other State Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 5 pages.
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Local Government * | Unknown | Unknown | Unknown |
* expected to exceed $100,000 per year.
ASSUMPTION
Officials from the Office of Administration - Division of Personnel, and Division of Design and Construction; and the Department of Higher Education assume this proposal would result in no fiscal impact to their organizations.
Officials from Truman State University assume this proposal could result in unknown savings to their organization.
Officials from the University of Missouri stated they were unable to determine the extent to which this proposal might apply to their organization.
ASSUMPTION (continued)
Officials from the Department of Elementary and Secondary Education (DESE) assume this proposal would eliminate the requirement for prevailing wage determinations in the maintenance, renovation or construction of public school facilities by non-school district workmen (laborers, workmen and mechanics).
DESE assumes passage of this bill would require zero increase in state cost and have the added benefit of reducing public school district facility construction costs significantly (potentially 15%-40%). A statewide survey of school district facility needs conducted in February 2000 found that the age of the facilities exceeded 30 years for 64% of the school buildings reported. DESE found that 25% of the school buildings exceeded 50 years of age and 12% exceeded 70 years. The survey report estimated current building costs for required repairs, renovation, modernization and new construction to exceed $4 billion. If the passage of this bill reduced the school district facility cost by even 15%, the cost savings to Missouri taxpayers could be $600 million.
Oversight assumes this proposal would eliminate the prevailing wage requirement for maintenance, renovation or construction of school facilities by non-school district workmen. Eliminating the prevailing wage requirement could result in significant but unknown savings to schools and allow small businesses to participate in these projects which do not currently pay their workers at a prevailing wage rate.
Officials from the St. Louis Community College System and Three Rivers Community College did not respond to our request for information.
| FISCAL IMPACT - State Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| $0 | $0 | $0 | |
| FISCAL IMPACT - Local Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| POLITICAL SUBDIVISIONS | |||
| Schools | |||
| Construction cost savings * | Unknown | Unknown | Unknown |
| NET EFFECT ON POLITICAL SUBDIVISIONS * |
Unknown |
Unknown |
Unknown |
| * expected to exceed $100,000. |
FISCAL IMPACT - Small Business
Small businesses in the construction industry could be affected by this proposal.
DESCRIPTION
This proposal would eliminate the requirements of the Prevailing Wage Laws for work done on behalf of schools.
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 and Industrial Relations
Office of Administration
Department of Elementary and Secondary Education
Department of Higher Education
University of Missouri
Truman State University
NOT RESPONDING
St. Louis Community College System
Three Rivers Community College
Mickey Wilson, CPA
Director
February 12, 2003