Oversight

1. Fiscal Note Training 2019 Legislative Session Oversight

2. Meet Our Staff • What is a Fiscal Note? • When is a Fiscal Note Prepared? • Special/Confidential Requests • How do I respond to a Fiscal Note? • 2019 Changes • Reminders • Comment and Technical Memos • Omnibus Bills • Dates to remember Agenda

3. Kyle Rieman, Director • Ross Strope, Asst. Director • Kim Bax • Greg Beeks • Kendra Crum • Debbie Duncan • Jeani Hancock (JH) • Jessica Harris (JLH) • Samantha Koeppen • Nina Medlock • Valerie Mueller • Shanna Stark • Elliott Usher • Helen Webster-Cox Meet Our Staff For a listing of Department/Agency assignments and contact information, please visit www.legislativeoversight.mo.gov (Fiscal Note Information – State Agencies)

4. WE ARE ALL IN THIS TOGETHER

5. The estimated net direct impact to state revenues or expenditures caused by the proposed legislation. • Need to all start thinking of fiscal note impacts the same way. • A proposed bill would undoubtedly increase the caseload of Program X by 100%. Currently the division in charge of Program X is budgeted at $200,000 and two (2) FTE but for the last three years has only actually spent $100,000 and one (1) FTE. What would the fiscal note be for the proposed bill? What is a Fiscal Note?

6. Answer: Program X ACTUALLY spent $100,000 and one (1) FTE, therefore we could reasonably assume doubling the workload of program X will have a directcost of an additional $100,000 and one (1) FTE. What is a Fiscal Note? Cont:

7. Chapter 23 RSMo also requires a Fiscal Note to include: • The direct fiscal impact to political subdivisions in the state • Impact on small businesses • Duplication of an existing program or agency • Requirement of physical facilities or capital improvements • Satisfies a federal mandate for the program or agency What is a Fiscal Note? Cont:

8. Pre-filed (all pre-filed bills will be sent out, but not all will have a fiscal note completed) • Scheduled to be heard in committee • Reported out of committee (if changed) • Perfected • Cross chamber bill referred to Fiscal Review or Fiscal Oversight • Conference Committee Substitutes (automatically referred to Fiscal Review) • Truly Agreed To and Finally Passed • Special/Confidential Requests • An “Updated Note” is requested and approved by the Chair When is a Fiscal Note Prepared?

9. Fiscal Note Priority • Conference Committee Reports (CCR) • Amendments/Substitutes to any version of a bill that could be TAFP’d • Example: SA 3 to SS to HCS to HB 421 • Perfected Bills • Amendments and Substitutes to bills reported out of a hearing • Intro bills with a hearing scheduled • Special/Confidential Requests

10. Legislation that has not been assigned a bill number • A committee substitute that has not been reported out of committee • Possible amendment • Rough draft of future legislation Special/Confidential Requests

11. READ THE PROPOSED LEGISLATION! • Does the proposal have any direct impact (cost or savings) to my Organization, assuming we continue to provide the same level of services? • No? – Email Analyst “No Direct Impact” • Yes? – Go to #3 • Answer the Overview Questions and Fiscal NoteWorksheet, citing all sources How do I respond to a Fiscal Note?

12. Due to the changes, Oversight will not have a due date before December 21st, 2018 on any pre-filed bill • Overview Questions and Worksheet Changes • Oversight will be looking for (and asking for) more source data and backup documents in agency responses • Updated Notes: Notify Oversight immediately with updated information • Comparison of fiscal note responses to budget requests (and eventually actual expenditures) • Oversight Resource Indicator (O.R.I.) 2019 Changes:

13. Website for downloading the fiscal note worksheet(s): • www.legislativeoversight.mo.gov Note: Changes to the form for 2019 include: • Combining of previous questions 5, 9 and 12 (new question 8) – we are asking for fiscal impact broken out by section(s) of the bill. Include direct costs (income, savings, losses) by section(s). • Notify Oversight of any direct costs and/or saving that could be absorbed within your CURRENT (FY 19) and GOV REC (FY 20) budgets by fund, appropriation and amount. • Question 3 – only tell us which organizations that you believe could be impacted that were NOT on the sendout (no need to re-list the agencies that we sent the request to) • Previous question 11 (Revised worksheet?) – now please check the box at the top of the page if it is a revised response (and clarify which section the revision is being made to) • This year, we are asking for Budget Object Codes for anticipated costs Fiscal Note Worksheet

14. Is this a Revised Response - Yes (check box if so) • 1. Is this legislation federally mandated? Yes No (If yes, cite specific law, court order or federal regulation.) • 2. Does this proposal duplicate any other program? Yes No Cite specific program, administering agency, applicable statutes or regulations. • 3. Does this proposal affect any other state agency or political subdivision, NOT listed on the sendout sheet? If so, which ones? • 4. Will this legislation result in a need for any additional capital improvement or rental space? Use OA budget guidelines for costs. (Give details for cost, square feet, location, etc.) • 5. Will this legislation have an economic impact on small business? Overview Questions

15. 6. Will a new system be required? Yes No Please detail all IT cost or savings related to the proposal (by fiscal year through first year of full implementation and specify in-house vs. contracted work). Are you a consolidated agency under OA-ITSD? Yes No • 7. Will this legislation directly affect Total State Revenue? Yes No (If yes, please explain how.) • 8. By section number, please indicate each cost, loss, revenue and savings that impacts your agency. Please make sure your response includes the following information: • All assumptions and the methodology used to arrive at the impact, including providing all supporting documentation. • Each actual cost, revenue, and/or savings should be individually identified by FTE including salary range/step, expenses and equipment by budget object codes. (please do not provide just the net amount.) • For each actual cost, revenue and/or savings, indicate if your agency has existing budget authority that can absorb the cost or be reduced by the savings. The cost/savings must be indicated by the appropriation number, fund number, FTE and amount for the current FY and Governor’s Recommended budgets. Continued Overview Questions

16. All responses must be emailed to: fiscal.note@lr.mo.gov • All responses must include Oversight analyst’s name or initials in subject line or on the attachments. • Attachments must be named with: • LR number • dash number • agency acronym • file extension • Examples: • A response from the Department of Revenue for LR number 1234-01 would be named: • 1234-01n.dor.xls • 1234-01n.dor.doc • If responding after-hours, please cc the analyst. Fiscal Note Responses

17. A proposed bill would undoubtedly increase the number of fingerprint background checks conducted by Program X by 100%. Currently the division in charge of Program X is budgeted at $200,000 and two (2) FTE but for the last three years has only actually spent $100,000 and one (1) FTE. Examples:

18. Do NOT Answer: There will be No Direct Impact to Department XYZ. • What if the Department can absorb the costs in their budget? • Lapsed Authority • Reallocations • What if the Department can find “efficiencies” in other programs that result in no increased costs? • Are those efficiencies a result of the proposed legislation? If Yes, explain them. If No, then the Department is telling us they are operating inefficiently and only plans to change if necessary… Example 1 WHAT NOT TO DO

19. Answer: Dept. XYZ for the last 3 fiscal years spent $100,000 and one (1) FTE, for Program X and assume the proposed legislation would double the workload of Program X from 195,986 to 391,972. Dept. XYZ assumes Program X will have a directcost of an additional $100,000 and one (1) FTE. The Dept’s FY 19 budget and FY 20 Gov. Rec. currently has $200,000 and two (2) FTE of existing budget resources for fund 0101 and approp 3590 that they anticipate will be able to absorb the increased direct costs. Example 2 Existing Authority

20. Answer: Dept. XYZ for the last 3 fiscal years spent $100,000 and one (1) FTE, for Program X and assume the proposed legislation would double the workload of Program X from 195,986 in 20151 to 391,972. Dept. XYZ assumes Program X will have a directcost of an additional $100,000 and one (1) FTE. The Dept’s FY 19 budget and FY 20 Gov. Rec. currently has $200,000 and two (2) FTE of existing budget resources for fund 0101 and approp 3590 that they anticipate will be able to absorb the increased direct costs. 1. MSHP CJIS 2015 Annual Report (page 11) Example 3 Cite Your Sources

21. Answer: Dept. XYZ for the last 3 fiscal years spent $100,000 and one (1) FTE, for Program X and assume the proposed legislation would double the workload of Program X from 195,986 in 20151 to 391,972. Dept. XYZ assumes Program X will have a directcost of an additional $100,000 and one (1) FTE. The Dept’s FY 19 budget and FY 20 Gov. Rec. currently has $100,000 and one (1) FTE of existing budget resources for fund 0101 and approp 0075 that they anticipate reallocating to fund 0101 and approp 3590 to be able to absorb the increased direct costs. 1. MSHP CJIS 2015 Annual Report (page 11) Example 4 Reallocations

22. Unused pages of the worksheet should be deleted before sending • When sending responses after hours, please cc the Oversight analyst • Only respond to the current version • If there is an impact, a statement of no change is preferred if true! • Do not refer “no direct impact” responses back to the previous version • Fiscal Note Format • Bills in which the fiscal impact is beyond three years will have the last column (4th column) dedicated to reflect the Fully Implemented Impact of the bill • If you think we missed an organization that could be impacted on the send-out page, please call or email the analysts (please don’t wait until you send in your response). Better safe than sorry! Reminders***

23. We are all in this together • Communication is key! • Responses should be non-partisan and factual • Working docs and source data should be shared and explained • Organizations that do not respond, withhold information or intentionally provide misleading/inaccurate information will be noted Reminders ***

24. Comment and technical memos MUST be sent in a separate email from the fiscal note response. • Technical.Comment@lr.mo.gov • The subject line of the email MUSTinclude the Oversight analyst’s name or initials. • Oversight will forward to the sponsor and/or drafter. Comment and Technical Memos

25. Only respond to sections that affect your agency • Clearly identify those sections by noting the section numbers • Generally a quick turnaround time Omnibus Bills

26. Pre-filing begins: December 3, 2018 • Session Begins: January 9, 2019 • Holidays during session: • Dr. Martin Luther King, Jr. Day (January 21, 2019) • Lincoln’s birthday (February 12, 2019)* • President’s Day (February 18, 2019)* • Spring Break (March 15 – 22, 2019) • Easter Break (April 22, 2019) • Truman’s birthday (May 8, 2019)* *GA is in session (organizations should have staff working or on call) • Session Ends: May 17, 2019 (All hands on deck) Important Dates to Remember

27. Wrap Up