COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         4244-01

Bill No.:          HB 1949

Subject:           Ambulances and Ambulance Districts; Cities, Towns and Villages; Counties; Emergencies

Type:              Original

Date:               February 26, 2008

Bill Summary:            This proposal provides funds for grants to local emergency personnel to purchase equipment for use in disasters.

FISCAL SUMMARY

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 5 pages.

☐ 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).

FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Public Safety - State Emergency Management Agency (SEMA) state if House Bill 1949 is a one time equipment grant, then we could process the grant with contract labor. We would suggest no more than 2% for administration costs.

Officials from the Department of Public Safety - Director’s Office assume the proposal would not fiscally impact their agency.

Officials from the Office of the State Treasurer (STO) assume the proposal would not fiscally impact their agency. The STO defers to the Office of Administration - Budget and Planning for the impact on General Revenue.

Officials from the Office of Administration - Budget and Planning (BAP) state Subsection 11 allows appropriation of "no less than ten percent of the unbudgeted surplus in revenue from fiscal year 2007" to the Missouri Disaster Fund. BAP estimates that this amount would be up to approximately $8.9 million. The definition of "unbudgeted surplus" is unclear therefore BAP assumes this to mean general revenue only and that it refers to the revenues which exceeded the general revenue estimate proposed in the Governor's Fiscal Year 2007 budget.

According to the Governor’s budget recommendation for FY 2008, the Consensus Estimate for FY 2007 General Revenue receipts (less refunds) was $7,627,100,000. However, according to the Governor’s budget recommendation for FY 2009, the actual General Revenue collections for FY 2007 (less refunds) was $7,716,363,208. Therefore, Oversight will assume the ‘unbudgeted surplus in revenue from fiscal year 2007' to be the difference between the two, or $89,263,208 ($7,627,100,000 - $7,716,363,208). The proposal states ‘no less than ten percent’ of this shall be used to provide grants; therefore, Oversight will utilize an estimate of $9 million to be used for this program.

Oversight assumes this is not an on-going project, but simply a one-time equipment purchase grant from the state to the local political subdivisions that would occur in FY 2009.

FISCAL IMPACT - Small Business

No direct fiscal impact to small businesses would be expected as a result of this proposal.

FISCAL DESCRIPTION

This proposal requires at least 10% of the unbudgeted surplus in revenue from Fiscal Year 2007 from the Missouri Disaster Fund, or any other moneys appropriated to the fund under Section 44.032, RSMo, to be used to provide grants to any political subdivision to purchase necessary equipment for emergency personnel to respond to a natural or man-made disaster in a timely and efficient manner.

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 Public Safety

Office of Administration

Office of the State Treasurer

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                February 26, 2008