Colorado Legislative Council Staff

STATE

FISCAL NOTE

General Fund Expenditure Impact


Drafting Number:

Prime Sponsor(s):

LLS 98-284

Rep. Schauer

 

Date:

Bill Status:

Fiscal Analyst:

February 4, 1998

House Finance

Harry Zeid (866-4753)

 

TITLE:            CONCERNING GOVERNMENTAL EFFECTIVENESS, AND, IN CONNECTION THEREWITH, PROVIDING FOR THE CREATION OF A TASK FORCE TO STUDY THE EFFICIENCY, EFFECTIVENESS, AND NECESSITY OF STATE AND LOCAL GOVERNMENTS AND THE COMMISSIONING OF A REVIEW AND ANALYSIS OF COLORADO’S TOTAL TAX REVENUES, TAX EXPENDITURES, AND FISCAL POLICIES.



Summary of Legislation


STATE FISCAL IMPACT SUMMARY

FY 1998/99

FY 1999/2000

State Revenues

General Fund

Other Fund



 



 

State Expenditures

General Fund

Other Fund


$836,635


$82,335

FTE Position Change

0.85 FTE

0.85 FTE

Local Government Impact — None


            This bill would establish a 21-member task force for the study and review of the efficiency, effectiveness, and necessity of state and local governments. Seven members each would be appointed by the Governor, the Speaker of the House of Representatives and the President of the Senate. Task force members would receive a per diem of $50 plus all actual and necessary travel and subsistence expenses. The first meeting of the task force would be held by November 1, 1998. An interim report for the General Assembly would be prepared by March 1, 1999. After completion of the interim report, the task force may request additional funding from the General Assembly to complete the final report. The final report and recommendations would be prepared by December 31, 1999. The bill provides that the Director of Research of the Legislative Council and the Director of the Office of Legislative Legal Services would supply staff assistance to the task force.


            The bill would authorize the Director of Research of the Legislative Council to contract for or conduct a review and analysis of the total tax revenues, tax expenditures, and fiscal policies of governments in Colorado. The analysis would be submitted to the General Assembly on or before December 31, 1999.


            The bill would require the expenditure of state moneys. Therefore, the bill is assessed as having state fiscal impact. The bill will become effective at 12:01 a.m. on the day following the ninety-day period after adjournment sine die of the General Assembly, or on the date of the official declaration of the vote of the people as proclaimed by the Governor, if a referendum petition is filed pursuant to Article V, Section 1 (3) of the State Constitution.



State Expenditures


            Efficiency of Government Task Force. The bill specifies that the Legislative Council staff and the Office of Legislative Legal Services staff would supply staff assistance to the task force. Legislative Council staff will require 0.25 FTE Research Staff and OLLS will require 0.10 FTE Staff Attorney in FY 1998-99 and FY 1999-00 for this function. In addition, Legislative Council staff will be responsible for contracting for the review of fiscal policies, and overseeing the contract. This will require 0.5 FTE Economist III annually in FY 1998-99 and FY 1999-00.


            Assuming the task force will meet eight times during FY 1998-99 and 8 times in FY 1999-00, meeting costs and staff resource requirements are identified in Table 1. It is assumed that in addition to the per diem of $50 per task force member, the average expense reimbursement for members is $50 per meeting.


Table 1. Estimated Fiscal Impact for the Efficiency of Government Task Force

 

FY 1998-99

FY 1999-00

Member Per Diem

$50/Day x 24 Members x 8 Meetings

$9,600

$9,600

Member Expense Reimbursement

$50/Meeting x 24 Members x 8 Meetings

$9,600

$9,600

Legislative Council Staff*:

0.25 FTE Research Staff

0.50 FTE Economist III

Office Furniture

Computer Capital Outlay

Operating and Travel


$8,756

49,282

1,800

2,500

       500

$62,838


$8,756

49,282

---

---

       500

$58,538

Office of Legislative Legal Services*:

0.10 Staff Attorney

$4,597

$4,597

  Total

$86,635

$82,335

             *Includes PERA and Medicare.



            Fiscal Policies Study. The bill authorizes the Director of Research of the Legislative Council to contract for or conduct a thorough review and analysis of the total tax revenues, tax expenditures, and fiscal policies of governments in Colorado. The objectives of the study are identified in the bill.             The cost of similar studies in other states have ranged from a low of $350,000 to a high of $1.5 million, depending on the nature of the study. For purposes of this fiscal note, it is assumed that a study in Colorado will require $750,000.



Expenditures Not Included


            Pursuant to the Joint Budget Committee’s budget policies, the following expenditures have not been included in this fiscal note:

 

               health and life insurance costs;

               short-term disability costs;

               inflationary cost factors;

               leased space; and

               indirect costs.



Spending Authority


            The fiscal note would imply that the Legislative Council would require a General Fund appropriation of $832,038 and 0.75 FTE, and the Office of Legislative Legal Services would require an appropriation of $4,597 and 0.1 FTE in FY 1998-99 in order to implement the provisions of the bill.



Departments Contacted


            Legislative Council                Office of Legislative Legal Services