COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 5157-01
Bill No.: SB 1166
Subject: Mental Health Dept.; State Employees
Type: Original
Date: February 29, 2008
Bill Summary: Provides for cost of living increases for Department of Mental Health contracted community providers.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUND |
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FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
General Revenue |
$0 or (Unknown exceeding $100,000) |
$0 or (Unknown exceeding $100,000) |
$0 or (Unknown exceeding $100,000) |
|
|
|
|
Total Estimated Net Effect on General Revenue Fund |
$0 or (Unknown exceeding $100,000) |
$0 or (Unknown exceeding $100,000) |
$0 or (Unknown exceeding $100,000) |
ESTIMATED NET EFFECT ON OTHER STATE FUNDS |
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FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
|
|
|
|
|
|
|
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Total Estimated Net Effect on Other State Funds |
$0 |
$0 |
$0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 5 pages.
ESTIMATED NET EFFECT ON FEDERAL FUNDS |
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FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
Federal |
$0* |
$0* |
$0* |
|
|
|
|
Total Estimated Net Effect on All Federal Funds |
$0* |
$0* |
$0* |
* Revenue and expenditures $0 to Unknown exceeding $100,000 annually and net to $0.
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE) |
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FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
|
|
|
|
|
|
|
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Total Estimated Net Effect on FTE |
0 |
0 |
0 |
☐ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).
☐ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).
ESTIMATED NET EFFECT ON LOCAL FUNDS |
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FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
Local Government |
$0 or (Unknown exceeding $100,000) |
$0 or (Unknown exceeding $100,000) |
$0 or (Unknown exceeding $100,000) |
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Social Services (DOS) state this proposal requires that the annual cost of living percentage increases for contracted community providers with the Department of Mental Health to be no less than the annual percentage pay increase, including fringe benefits, for Department of Mental Health state employees.
The MO HealthNet Division reviewed the language in this proposal and stated that there would be no fiscal impact to the DOS. The DOS assumes that the fiscal impact of any increase in reimbursement to providers would be borne by Department of Mental Health.
Officials from the Department of Mental Health (DMH) state the fiscal impact is contingent upon state employee pay and fringe benefit increases appropriated by the Legislature. The DMH is not able to project future state employee pay or fringe benefit increases. Therefore, the fiscal impact is unknown to greater than $100,000.
Oversight obtained additional information from the DMH. At the present time, the Governor’s recommended totals for the provider inflationary increase is a decision item in the DMH’s budget. Based on a 1% increase in state employee salaries, excluding fringe benefits, this proposal will result in additional costs to the State of approximately $7.37 million ($2.8 million General Revenue, $3.6 million Federal, and $1.0 million Other Funds.
Oversight assumes since the proposal is contingent on state employee pay and fringe benefit increases, the fiscal impact will be $0 when there are no pay and fringe benefit increases for state employees and unknown, exceeding $100,000, when state employees receive pay and fringe benefit increases.
FISCAL IMPACT - State Government |
FY 2009 (10 Mo.) |
FY 2010 |
FY 2011 |
GENERAL REVENUE FUND |
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|
|
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Costs - DMH |
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Increase in contracted community provider costs |
$0 or (Unknown exceeding $100,000) |
$0 or (Unknown exceeding $100,000) |
$0 or (Unknown exceeding $100,000) |
|
|
|
|
ESTIMATED NET EFFECT ON GENERAL REVENUE FUND |
$0 or (Unknown exceeding $100,000) |
$0 or (Unknown exceeding $100,000) |
$0 or (Unknown exceeding $100,000) |
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|
|
FEDERAL FUNDS |
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|
|
|
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Income - DMH |
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Increase in contracted community provider reimbursements |
$0 or Unknown exceeding $100,000 |
$0 or Unknown exceeding $100,000 |
$0 or Unknown exceeding $100,000 |
|
|
|
|
Costs - DMH |
|
|
|
Increase in contracted community provider costs |
($0 or Unknown exceeding $100,000) |
($0 or Unknown exceeding $100,000) |
($0 or Unknown exceeding $100,000) |
|
|
|
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS |
0* |
0* |
0* |
* Revenue and expenditures $0 to Unknown exceeding $100,000 annually and net to $0.
FISCAL IMPACT - Local Government |
FY 2009 (10 Mo.) |
FY 2010 |
FY 2011 |
LOCAL GOVERNMENTS |
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|
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Costs - Local Governments |
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|
|
Increase in contracted community provider costs |
$0 or (Unknown exceeding $100,000) |
$0 or (Unknown exceeding $100,000) |
$0 or (Unknown exceeding $100,000) |
|
|
|
|
ESTIMATED NET EFFECT ON LOCAL GOVERNMENTS |
$0 or (Unknown exceeding $100,000) |
$0 or (Unknown exceeding $100,000) |
$0 or (Unknown exceeding $100,000) |
FISCAL IMPACT - Small Business
The proposal could directly impact small businesses in the mental health sector that do not contract with the Department of Mental Health but provide similar services to private entities by forcing them to pay higher wages to compete in the labor market.
FISCAL DESCRIPTION
This proposal provides that annual cost of living percentage increases for contracted community providers with the Department of Mental Health shall be no less than the annual percentage pay increase for Department of Mental Health state employees.
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 Mental Health
Department of Social Services
Mickey Wilson, CPA
Director
February 29, 2008