COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 1760-03

Bill No.: HB 668 with HCA 1,2,3,4,5,6,7 & 8

Subject: Roads and Highways, Transportation, Transportation Dept.

Type: Original

Date: March 30, 2003




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2004 FY 2005 FY 2006
General Revenue* (Unknown greater than $166,049) (Unknown greater than $181,462) (Unknown greater than $181,462)
Total Estimated

Net Effect on

General Revenue

Fund





(Unknown greater than $166,049)




(Unknown greater than $181,462)




(Unknown greater than $181,462)

*Unknown cost is subject to appropriations and the request of the Inspector General



ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Highway Fund* $0 $0 $0
Total Estimated

Net Effect on Other

State Funds

$0 $0 $0

**Income and Cost for rental space are a net zero for the Highway Fund.



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 6 pages.















ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Local Government $0 $0 $0




FISCAL ANALYSIS



ASSUMPTION



Officials with the Office of Administration-Budget and Planning (BAP) assume this proposal could have substantial impact on General Revenue for the cost of the Inspector General and subsequent staff. BAP further assumes that the provisions in 226.192 allow the inspector general to request assistance from BAP and its staff. BAP assumes this could create an unknown cost for their agency to fund personnel to assist the Inspector General. Oversight assumes that BAP could assist the Inspector General with existing resources.



Officials with the Department of Transportation (MoDOT) assume this legislation would require MoDOT to provide office space for the Transportation Inspector General and staff. MoDOT hopes to locate space without incurring additional expenses. However, there could be a need to lease a facility for the Transportation Inspector General and\or any MoDOT displaced staff. The estimated costs is $21,600 (based on an assumption of a staff of 8 people, 200 square feet per person, and $13.50 cost per square foot of space).



Oversight assumes that the extent of personnel is not specified and is subject to appropriations. Therefore, for fiscal note purposes, Oversight estimates that MoDOT could incur cost for rental space for two or more persons.





ASSUMPTION (continued)



MoDOT further assumes that this legislation could allow the Transportation Inspector General to hire needed staff and MoDOT assumes that there will be significant and on-going request for information including reports and explanations of inquiries. The additional required items for discussion by the Joint Committee on Transportation Oversight in Section 21.795.4, will require more frequent reporting. Therefore, MoDOT assumes that one additional Senior Business Specialist will be needed to coordinate information requests/responses for the new Transportation Inspector General and to coordinate the additional information to be discussed by the Joint Committee on Transportation Oversight. The salary for this employee is $44,628 with standard office equipment and expenses. Oversight assumes that MoDOT could handle the additional requests and reporting with existing staff.



Oversight assumes this proposal could create a position of an independent Inspector General and that the activities of the Inspector General could include investigations, complaint and contract reviews. For fiscal note purposes, Oversight uses the following personnel cost but notes that the full cost of the office is subject to the needs of the Inspector General and future appropriations.



Personal Service

Inspector General $86,868

Executive Secretary $33,380



FY 04-Cost (Ten Months)

Salaries (2 FTE) $102,712

Fringe Benefits $41,567

Equipment (one time) $10,120

Expenses $4,150

Travel Expenses $3,000

Rental Space (2 FTE*$2,700) $4,500

Total Estimated Cost for 2 FTE $166,049



FY 05-Cost (no growth assumed)

Salaries (2 FTE) $120,248

Fringe Benefits $48,664

Expenses $4,150

Travel Expenses $3,000

Rental Space (2 FTE*$2,700) $5,400

Total Estimated Cost for 2 FTE $181,462







ASSUMPTION (continued)



FY 06-Cost (no growth assumed)

Salaries (2 FTE) $120,248

Fringe Benefits $48,664

Expenses $4,150

Travel Expenses $3,000

Rental Space (2 FTE*$2,000) $5,400

Total Estimated Cost for 2 FTE $181,462



FISCAL IMPACT - State Government FY 2004

(10 Mo.)

FY 2005 FY 2006
GENERAL REVENUE
Cost - Inspector General's Office
Personal Service for 2 FTE (Inspector General and Executive Secretary) (Unknown greater than $102,712) (Unknown greater than $120,248) (Unknown greater than $120,248)
Fringe Benefits (Unknown greater than $41,567) (Unknown greater than $48,664) (Unknown greater than $48,664)
Expense and Equipment (Unknown greater than $17,270) (Unknown greater than $7,150) (Unknown greater than $7,150)
Reimburse Highway Fund for rental space (2 FTE) (Unknown greater than $4,500) (Unknown greater than $5,400) (Unknown greater than $5,400)
Total Cost* (Unknown greater than $166,049) (Unknown greater than $181,462) (Unknown greater than $181,462)
NET ESTIMATED EFFECT ON GENERAL REVENUE (Unknown greater than $166,049) (Unknown greater than $181,462) (Unknown greater than $181,462)
*Unknown cost is subject to appropriations and the request of the Inspector General.









FISCAL IMPACT - State Government FY 2004

(10 Mo.)

FY 2005 FY 2006
HIGHWAY FUND
Income-Department of Transportation
Reimbursement for rent space

(2 FTE)**

Unknown greater than $4,500 Unknown greater than $5,400 Unknown greater than $5,400
Cost-Department of Transportation
Rental space (2 FTE)** (Unknown greater than $4,500) (Unknown greater than $5,400) (Unknown greater than $5,400)
NET ESTIMATED EFFECT ON HIGHWAY FUND



$0


$0


$0

**Unknown cost and income for rental space is subject to appropriations for the number of employees in the Inspector General's office.



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 enacts various accountability measures for the operation of the Department of Transportation. These measures include a new Inspector General position and a provision for MoDOT to supply rental space.



This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements



Additional rental space could be needed.







SOURCES OF INFORMATION



Department of Revenue

Department of Transportation















Mickey Wilson, CPA

Director

March 30, 2003