Colorado Legislative Council Staff

STATE

REVISED FISCAL NOTE

(Replaces Fiscal Note dated January 30, 1998)

General Fund &Cash Fund Expenditure Impact

TITLE:            Concerning the creation of the department of communication and information resources.

Summary of Legislation

            The reengrossed bill would create a new Department of Communication and Information Resources as a principal department to coordinate communication and information resources management within state government. The following agencies would be transferred from the Department of Personnel to the new department;

∙          the Commission on Information Management;

∙          the Division of Telecommunications;

∙          the General Government Computer Center; and

∙          the Division of State Archives and Public Records.

            Employees and the functions and duties would be transferred to the new department, except for certain employees who may be transferred upon the approval of the Chief Technology Officer. The appointment, replacement, and removal of members of the Commission on Information Management and their terms of office and compensation of the commission would be changed. The commission's purposes and duties would be defined. The Governor would appoint the Chief Technology Officer who would prepare a state strategic plan and submit it to the commission.

            State agencies would be required to:

            •   pay the department for services provided by the department;

            •   assess progress toward achieving strategic plan;

            •   summarize uses of communication resources;

            •   summarize expenditures by project;

            •   compare expenditures with last years noting differences;

            •   submit a strategic plan; and

            •   obtain the commission's approval in obtaining new technologies.

            The commission would:

            •   monitor national and international standards;

            •   develop policies and standards relating to information resources management;

            •   provide technical and managerial assistance; and

            •   establish an information resource technology evaluation center.

            A Chief Technology Officer would be created to head the new department, assist the commission in carrying out its duties, and prepare a state strategic plan for information resources management. An annual report would be prepared on information resources management activities of state government. State agencies would have to obtain commission approval before acquiring informational technologies. The bill would create the Communication and Information Resources Management Fund. Revenue to the fund would be from fees charged to departments for the costs of services provided by the commission. An advisory committee and a nine member legislative Joint Computer Management Committee would be created. The reengrossed changes the effective date of the bill from July 1, 1998, to July 1, 1999.

State Expenditures

            Impact to Other State Departments. State departments purchasing services from the new department would experience an increase in fees resulting from the requirement that the new department assess fees based on services rendered. The amount of the fee increase to each department would depend upon a departments utilization of the new departments services. For purposes of this fiscal note, all of the Chief Technical Officer’s budget ($316,102) and 4.0 FTE would be from cash exempt funds.

            Other departments of the state would have to submit an annual report by November in each even-numbered year. Each department would submit a strategic plan to the commission by January 1 in each even-numbered year. The information the bill requests would be available from existing resources. Departments would have an additional workload to compile the information required, but would not require an appropriation to implement the provisions of this bill.

            Department of Personnel and Communication and Information Resources. Creating a new department would add an executive director's office that does not exist under current law. The Office of the Chief Technician would require 4.0 new FTE and $316,102 in CFE. Of that amount, $301,102 CFE would be for personal services, $15,000 would be for legal services. The bill requires that the new office be funded from services offered to all departments of state government. Therefore, the costs of the executive office would be funded from cash exempt funds.

            The bill would change the Commission on Information Management. The commission would have the resources of an entire department at its disposal. The tables below provide a summary of the transfers between the Department of Personnel and the Department of Information Resources.

            The bill requires that the new department cash fund its services by charging departments for services provided. Cash funds exempt would increase by $316,102. The total costs of creating the new department is 4.0 FTE and $316,102. The cost savings from changing the members of the commission would reduce the operating costs of the commission by an insignificant amount.

            The bill allows the commission to appoint an advisory committee. It is assumed that the commission would pay the cost of any advisory commission appointed out of its operating budget.

            Legislative Council. The bill establishes an Interim Committee of the Legislative Council. This would require 0.4 FTE and $20,208 GF. Of this amount, 13,352 would be for staff support. The Legislative Council Staff would require 0.25 FTE and $8,756 and the Office of Legislative Legal Services would require 0.13 FTE and $4,597 to staff the committee. It is assumed that the nine member committee will meet 5 times during the year. Legislators would receive $99 perdiem and an average of $50 in actual and necessary expenses. Reimbursement for legislators serving on the committee is estimated at $6,855.

Spending Authority

            This fiscal note implies that the Department of Personnel and the new Department of Communication and Information Resources will submit new budgets for FY 1999-00 to identify and separate changes in the two departments. The estimated affect would be a reduction of 196.0 FTE and $27,768,515 in spending authority the Department of Personnel for FY 1999-00. Of that amount $6,005,243 would be GF, $502,302 would be CF, $65,569 would be HUTF, and $21,195,401 would be CFE. The Department of Information Resources budget is estimated to be 200.0 FTE and $28,084,617 in spending authority. Of that amount, $6,005,243 would be GF, $502,302 would be CF, $65,569 would be HUTF, and $21,511,503 would be CFE. The Legislative Department would require an increased General Fund spending authority of 0.4 FTE and $20,208 for FY 1999-00 to implement the provisions of this bill. Of this amount, the General Assembly would require $6,855, the Legislative Council would require $8,756 and 0.25 FTE, and the Office of Legislative Legal Services would require $4,597 and 0.13 FTE.

Departments Contacted

Personnel

FACTS AND ASSUMPTIONS

Assumptions

1.         That the numbers reflect the Department of Personnel's FY 1998-99 budget request.

2.         That all employees would be transferred to the new department.

3.         That the bill includes the costs of leased space, indirect costs, health and life insurance, and other POTS items.

4.         That all departments currently develop a strategic plan concerning information technologies and submit the plans to the IMC or the Executive Director of the new department. Therefore, there would not be any additional costs to the departments of submitting a report to the new commission.

5.         That the Joint Computer Management Committee would meet 5 times.