Colorado Legislative Council Staff

STATE

REVISED FISCAL IMPACT

(replaces fiscal impact dated January 9, 1999)

Drafting Number:

Prime Sponsor(s):

LLS 99-0194

Sen. Teck

Rep. George

Date:

Bill Status:

Fiscal Analyst:

March 29 1999

Senate Appropriations

Harry Zeid (303 866-4753)

 

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, AND MAKING AN APPROPRIATION IN CONNECTION THEREWITH.


Fiscal Impact Summary

FY 1999/2000

FY 2000/2001

State Revenues

General Fund


 


 

State Expenditures

General Fund


$147,871


$124,646

FTE Position Change

3.0 FTE

3.0 FTE

Other State Impact: None

Effective Date: Upon signature of the Governor.

Appropriation Summary for FY 1999-2000: $127,619 GF and 2.5 FTE to the Legislative Council and $20,252 GF and 0.5 FTE to the Office of Legislative Legal Services.

Local Government Impact: Local governments would be represented on the task force.



Summary of Legislation


            This bill, as amended in the Senate Finance Committee, would create a 6-member Legislative Review Committee to oversee a study of tax and fiscal policies of state and local governments. Committee membership would include three members of the House of Representatives and three members of the Senate. The committee would be required to complete a legislative proposal on or before October 15, 2001. Members of the committee would consult with a 24-member Fiscal Policies Study Task Force. Task force members would include 20 members appointed by the Governor, two members appointed by the Speaker of the House of Representatives, and two members appointed by the President of the Senate. This task force would not include members of the General Assembly, and task force members would serve without compensation. The duties of the task force would include:

 

               to evaluate the overall effectiveness and impact of state and local government tax and fiscal policies;

               to communicate with and obtain input from groups throughout the state affected by state and local government tax and fiscal policies;

               to create subcommittees or subgroups as necessary to aid in the completion of the task force study and develop legislative proposals for change to state and local fiscal policies, including changes to law and government organization and structure; and

               to report at least monthly to the members of the Legislative Review Committee.

            Additional duties of the task force would include:

 

               make recommendations for reducing or eliminating subdivisions of government that interfere with the effective and efficient delivery of governmental services;

               make recommendations concerning what level of government could best provide the governmental services currently being provided;

               review, analyze, and make recommendations concerning any additional issues the task force considers appropriate: and

               communicate with and obtain input from citizens and groups throughout the state.

 

            The task force would prepare an interim report for the General Assembly by February 1, 2001, and a final report, including recommendations, by November 1, 2001.


            The bill commissions a thorough review and analysis of the total tax revenues, tax expenditures, and fiscal policies of state and local governments. The study would:

 

               review total expenditure and revenue trends;

               review the nature and growth potential of the state economy;

               measure the overall state and local tax burden on taxpayers;

               evaluate individual state and local taxes;

               examine state and local relations; and

               identify any other factors deemed appropriate.


            The study would recommend changes in the state and local government tax structure and fiscal policies necessary to meet the state’s current and anticipated future growth demands. Other issues to be addressed by the task force study and proposed legislation for changing state and local government fiscal policies are identified in the bill.


            The task force for the study of state and local government tax and fiscal policies would be authorized to receive contributions, grants, services, and in-kind donations from any private entity to be expended for direct or indirect costs associated with the duties of the task force. The Director of Research of the Legislative Council, the Director of the Office of Legislative Legal Services (OLLS), and the executive directors of the departments represented on the task force would supply staff assistance to the Legislative Review Committee as deemed appropriate. The Legislative Review Committee may also accept staff support from the private sector.


State Expenditures


            The bill specifies that the Director of Research of the Legislative Council and the Director of the Office of Legislative Legal Services, and the executive directors of the departments represented on the task force shall provide staff assistance to the Legislative Review Committee, as deemed appropriate. Staff assistance provided by the Departments of Revenue, Local Affairs, and Education, and the Office of State Planning and Budgeting (OSPB) will be provided within existing resources.


            The Legislative Council Staff and the Office of Legislative Legal Services would require additional staff resources in FY 1999-00 and FY 2000-01 to provide support to the Legislative Review Committee. Table 1 identifies the requirements:


Table 1 Legislative Council Staff and OLLS Estimated Expenditures


 

FY 1999-00

FY 2000-01

Legislative Council Personal Services - 2.5 FTE

   1.0 FTE Economist I (85/1)

   1.0 FTE Economist II (91/1) 

   0.5 FTE Staff Asst. (80/1)

       (includes PERA & Medicare)

        Subtotal


$34,993

40,504

15,533


$91,030


$34,993

40,504

15,533


$91,030

Operating Expenses

5,000

5,000

Capital Outlay - Furniture

4,000

0

Capital Outlay - Computers (with basic software)

   Econometric & GIS software

10,000

12,225


3,000

Legislative Member Per Diem and Expenses

(6 members x $149/member x 6 meetings/year)


5,364


5,364

     Subtotal Legislative Council Staff (2.5 FTE)

$127,619

$104,394

OLLS Staff Attorney (0.5 FTE) (85/4)

$20,252

$20,252

TOTAL COSTS (3.0 FTE)

$147,871

$124,646


            The bill authorizes the task force to receive contributions, grants, services, and in-kind donations from any private entity to be expended for any direct or indirect costs associated with the duties of the task force.



Expenditures Not Shown


            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.



Local Government Impact


            Local governments, including counties, municipalities, special districts, and school districts, would be represented on the Fiscal Policies Study Task Force.



Spending Authority


            The fiscal note implies that the Legislative Council would require a General Fund appropriation of $127,619 and 2.5 FTE in FY 1999-00 to implement the provisions of the bill. In addition, the Office of Legislative Legal Services would require a General Fund appropriation of $20,252 and 0.5 FTE in FY 1999-00.



Departments Contacted

 

            Legislative Council Staff         Office of Legislative Legal Services           0SPB