COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         3853-02

Bill No.:          SCS for SB 874

Subject:           Highway Patrol; Appropriations

Type:              Original

Date:               February 29, 2008

Bill Summary:            This proposal requires the General Assembly to separately appropriate funds for the Highway Patrol uniform allowance.

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 Office of Administration - Budget and Planning, Missouri Senate and the Missouri House of Representative each assume the proposal will not fiscally impact their respective agencies.

Officials from the Department of Public Safety - Missouri Highway Patrol (MHP) state the proposed legislation would require the General Assembly to separately appropriate funds for the Highway Patrol uniform allowance. The Budget and Procurement Division of the Highway Patrol assumes the appropriation will be established at an amount of $800 per uniformed employee, and that this money will not be new money but will instead be reallocated from elsewhere in the Patrol's budget. Therefore, there will be no initial cost to set this up in FY ‘10. The first increase will come in FY ‘11, and that is when the first new costs will be realized.

There are currently 1,691 employees receiving uniform allowance (1,485 from Highway funds, 103 from General Revenue, and 103 from Gaming). This would equate to $1,352,800 in uniform allowance in the first year (1,691 employees x $800 each), which would need to be reallocated from elsewhere in the Patrol's budget. Since there is no way to predict what the Consumer Price Index will be in future years, it is impossible to project the cost of the annual increases. However, to get an idea, the most recent change in the CPI for the region Missouri is included in was 2.65%, according to the Bureau of Labor Statistics' website. Over the past 5 years, the average increase has been 2.66%. Based on current employee counts, this would have amounted to an average of approximately $35,984 in increases per year ($800 x 1,691 employees x 2.66%). This fiscal note is being prepared on that 5 year average.

Total FTE count:

Highway funded 87.82% (1,485/1691) = $31,602

General Revenue funded 6.09% ( 103/1691) = $ 2,191

Gaming funded 6.09% ( 103/1691) = $ 2,191

                                                                                    $35,984

Increases are estimated to be $35,984 per year, beginning in FY ‘11. Therefore the cost to the Highway fund will be $31,602 ($35,984 x 87.82%), the cost to General Revenue and Gaming will be $2,191 ($35,984 x 6.09%).

FISCAL IMPACT - Small Business

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

FISCAL DESCRIPTION

Beginning in fiscal year 2010, the General Assembly shall separately appropriate funds for the Highway Patrol uniform allowance and designate the amount for such allowance. The amount for the uniform allowance shall be no less than $800 and shall be adjusted each succeeding fiscal year by no less than the rate of the Consumer Price Index.

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 - Missouri Highway Patrol

Office of Administration - Budget and Planning

Missouri Senate

Missouri House of Representatives

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                February 29, 2008