COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 1247-01
Bill No.: Truly Agreed To and Finally Passed SB 330
Subject: Children and Minors; Employees-Employers; Family Law; Social Services Department
Type: Original
Date: May 20, 2003
FISCAL SUMMARY
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| General | $177,502 | $219,481 | $226,065 |
| Total Estimated
Net Effect on General Revenue Fund |
$177,502 | $219,481 | $226,065 |
| 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 4 pages.
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Federal* | |||
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
*Income and Costs of approximately $210,000 would net to $0.
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Local Government | $0 | $0 | $0 |
ASSUMPTION
Officials from the Department of Social Services - Division of Child Support Enforcement (CSE) state that this proposal would allow the CSE to mail income withholding orders and National Medical Support Notices to employers and unions by regular mail instead of strictly by certified, return receipt requested mail.
CSE states the cost of certified mail, return receipt requested service on an item is $2.30 for certified service and $1.75 for the return receipt card or a total of $4.05. This is a per-piece fee in addition to regular first class postage. The first class postage would be the same whether a letter is sent certified or simply by first class.
The CSE estimated the number of actions mailed annually that are affected by this proposal. Actions affected include new, revised and terminated income withholding orders sent to employers and new, revised and terminated National Medical Support Notices (NMSN) that are mailed to an employer or union. CSE assumes that the vast majority of NMSN's are mailed in the same envelope with a wage withholding, so they were not included in the count of letters mailed. In the first half of FY 03 (July through December), CSE has sent a total of 77,374 wage withholding actions. Assuming a one-to-one projection, CSE expects to send approximately 154,748 applicable action in FY 03.
ASSUMPTION (continued)
Assuming an annual mailing volume of 154,748 at a cost of $4.05 per action, CSE would realize savings of approximately $626,729.
| FISCAL IMPACT - State Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| GENERAL REVENUE | |||
| Savings - Department of Social Services - Division of Child Support Enforcement | |||
| Expense and Equipment | $177,502 | $219,481 | $226,065 |
| ESTIMATED NET EFFECT ON GENERAL REVENUE |
$177,502 |
$219,481 |
$226,065 |
| FEDERAL FUNDS | |||
| Income - Department of Social Services - Division of Child Support Enforcement |
|
||
| Federal Assistance | $344,563 | $426,050 | $438,832 |
| Costs - Department of Social Services - Division of Child Support Enforcement | |||
| Program expense | ($344,563) | ($426,050) | ($438,832) |
| ESTIMATED NET EFFECT ON FEDERAL FUNDS |
$0 |
$0 |
$0 |
| FISCAL IMPACT - Local Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| $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 allows the Division of Child Support Enforcement to send income withholding orders and orders to enroll to employers by either regular or certified mail.
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
Mickey Wilson, CPA
Director
May 20, 2003