Colorado Legislative Council Staff
STATE and LOCAL
REVISED FISCAL NOTE
(replaces Fiscal Note dated February 2, 1998)
State General Fund,Cash Fund, and Cash Funds Exempt Expenditure Impact
Federal Fund Expenditure Impact
Local Expenditure Impact
Drafting Number: Prime Sponsor(s): |
LLS 98-395 Rep. Anderson Sen. Lamborn |
Date: Bill Status: Fiscal Analyst: |
April 20, 1998 Senate Appropriations Steve Tammeus (866-2756) |
TITLE: CONCERNING A ONE-TENTH OF ONE PERCENT REDUCTION IN THE CONTRIBUTION RATE FOR EMPLOYERS IN THE STATE AND SCHOOL DIVISION OF THE PUBLIC EMPLOYEES’ RETIREMENT ASSOCIATION.
Summary of Legislation
STATE FISCAL IMPACT SUMMARY |
FY 1998/99 |
FY 1999/2000 |
State Revenues General Fund Other Fund |
|
|
State Expenditures General Fund Cash Funds Cash Funds Exempt Federal Funds Highway Users Tax Fund |
($721,792) (289,762) (231,195) (169,107) (7,253) |
($721,792) (289,762) (231,195) (169,107) (7,253) |
FTE Position Change |
None |
None |
Local Government Impact — This bill reduces the contribution rate for employers in the School Division of the Public Employees’ Retirement Association (PERA) from 11.5 percent to 11.4 percent. The reduced contributions would amount to $2,201,782 for FY 1998-99 and FY 1999-2000. |
This bill, as referred by the Senate Finance Committee (Senate Journal, March 18, 1998, page 490), reduces the contribution rate for employers in the State and School Division of the Public Employees’ Retirement Association (PERA) from 11.5 percent to 11.4 percent. The bill will become effective on July 1, 1998.
This bill will affect state and school district expenditures. Therefore, the bill is assessed as having a state and local fiscal impact.
State Expenditures
The 1998 Total Compensation Survey prepared by the Department of Personnel recommends a salary increase of 4.02 percent for FY 1998-99 for all occupational groups in the state personnel system. Based upon this recommendation, the total annual salary for FY 1998-99 for state employees would be approximately $1,419,110,000. This bill will reduce the state’s contribution rate for state employees by 0.1 percent, for a total reduction of $1,419,110 for FY 1998-99 and FY 1999-2000.
Local Government Impact
According to the Public Employee’s Retirement Association (PERA), the average school monthly payroll for CY 1997 for school employees who participate in PERA was $176,390,909. Based upon a salary increase similar to state employees, the average monthly salary for FY 1998-99 for school employees would be approximately $183,481,826 for an annual total salary of $2,201,781,882. This bill will reduce the school contribution rate for school division employees by 0.1 percent, for a total reduction of $2,201,782 for FY 1998-99 and FY 1999-2000.
Public Employees’ Retirement Association (PERA) Impact
The unfunded accrued actuarial liability in the PERA State and School Division is currently being amortized over a 21 year period. This amortization period takes into consideration all changes that were implemented as a result of 1997 legislation.
This bill will reduce the annual state contributions to PERA for state and school employees as identified above. PERA believes this reduction in contributions will increase the amortization period by one year. This increase is within statutory limits and is not considered to jeopardize the actuarial soundness of the PERA fund.
Spending Authority
This fiscal note implies that state agencies would require General Fund, cash fund, cash fund exempt, and federal fund reductions in the amount of $1,419,110 for FY 1998-99 as indicated in Table 1 on page 3 of this fiscal note.
Departments Contacted
Personnel PERA Joint Budget Committee Staff
Table 1
Impact of Reducing State and School Division Contributions to PERA
(these amounts represent reductions to state Agency costs)
Table 1 - Department |
Total |
GF |
CF |
CFE |
HUTF |
FF |
Agriculture |
$11,157 |
5,459 |
5,039 |
527 |
0 |
132 |
Corrections |
178,982 |
171,665 |
840 |
6,478 |
0 |
0 |
Education |
16,589 |
14,610 |
988 |
991 |
0 |
0 |
Governor's Office |
7,134 |
6,406 |
0 |
0 |
0 |
728 |
Health Care Policy & Financing |
7,453 |
3,550 |
0 |
0 |
0 |
3,903 |
HCPF (net GF transfer to HUM) |
29,869 |
14,690 |
0 |
0 |
0 |
15,179 |
Higher Education * |
403,801 |
198,441 |
190,989 |
14,257 |
0 |
114 |
Human Services |
184,711 |
99,651 |
2,132 |
53,338 |
0 |
29,590 |
Judicial Department |
100,273 |
95,462 |
4,811 |
0 |
0 |
0 |
Administration** |
84,028 |
79,217 |
4,811 |
0 |
0 |
0 |
Public Defender |
16,073 |
16,073 |
0 |
0 |
0 |
0 |
Alternate Defense Council |
171 |
171 |
0 |
0 |
0 |
0 |
Labor & Employment |
46,052 |
0 |
11,213 |
2,550 |
0 |
32,289 |
Law |
15,377 |
4,918 |
822 |
9,183 |
0 |
455 |
Legislature |
10,682 |
10,682 |
0 |
0 |
0 |
0 |
Local Affairs |
8,825 |
5,904 |
260 |
636 |
0 |
2,025 |
Military Affairs |
3,929 |
1,516 |
0 |
0 |
0 |
2,413 |
Natural Resources |
62,299 |
16,191 |
34,649 |
6,047 |
0 |
5,412 |
Personnel |
25,053 |
11,612 |
118 |
13,323 |
0 |
0 |
Public Health |
49,667 |
7,541 |
10,578 |
9,598 |
0 |
21,951 |
Public Safety |
46,030 |
8,897 |
2,316 |
31,789 |
2,110 |
918 |
Regulatory Agencies |
24,719 |
1,241 |
20,178 |
3,301 |
0 |
0 |
Revenue |
58,169 |
41,946 |
1,868 |
9,211 |
5,144 |
0 |
State |
2,592 |
0 |
2,592 |
0 |
0 |
0 |
Treasury |
1,212 |
1,212 |
0 |
0 |
0 |
0 |
Transportation |
124,534 |
198 |
370 |
69,967 |
0 |
53,998 |
Total PERA Reduction |
$1,419,110 |
$721,792 |
$289,762 |
$231,195 |
$7,253 |
$169,107 |