AN ACT CONCERNING STATE INVESTMENT IN PREVENTION AND CHILD POVERTY REDUCTION.

Agency Affected	Fund-Effect	FY 07 $	FY 08 $
Policy & Mgmt. , Off.	GF - Cost	110,000	110,000
Comptroller Misc. Accounts (Fringe Benefits)	GF - Cost	25,960	64,130
Various State Agencies	GF - Cost	Potential	Potential

Note: GF=General Fund

Municipal Impact: None

Explanation

Section 1 requires the Office of Policy and Management (OPM) to develop a prevention budget to be submitted when the governor recommends her budget. It is anticipated that OPM will need a Budget Analyst with a starting salary of $55,000¹. The budget bill (sHB 5007, as favorably reported by the Appropriations Committee) contains $335,000 for additional OPM staff; however it is uncertain whether funds would be used for such purpose. The agency will incur minor costs to the print this document.

Section 3 merges the Child Poverty Council with the Prevention Council and requires the council to develop a ten year plan and report on the state's progress towards meeting prevention goals. It is anticipated that OPM will require a Planning Analyst with a starting salary of $55,000¹. sHB 5007 contains $335,000 for additional OPM staff; however it is uncertain whether funds would be used for such purpose.

Section 3 also requires each budgeted state agency providing prevention services to children to report annually (commencing by 11/1/06) to the Child Poverty and Prevention Council. Certain descriptive and evaluative data must be presented for at least two prevention services in the 2006 report (rising to three prevention programs in 2007, four in 2008, five in 2009 and six in 2010 -2014). Each annual report must also include information on the impact of the prevention services in preventing and reducing the incidence of short-term and long-term child poverty.

Those agencies that have not historically focused resources on program evaluation efforts may incur administrative costs that cannot be handled within their normally budgeted resources to compile the required data elements. Additionally, a potential significant future cost would be incurred should the bill be interpreted to require the funding of additional types of services by any agency that now has fewer than six preventive programs.

It is anticipated that the Chief Court Administrator or his designee will be able to participate as a member of the Child Poverty and Prevention Council within the Judicial Department's anticipated budgetary resources.

Sections 2, 4 & 5 make conforming or other changes that have no associated fiscal impact.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

¹ The fringe benefit costs for state employees are budgeted centrally in the Miscellaneous Accounts administered by the Comptroller. The estimated first year fringe benefit rate as a percentage of payroll is 23. 6%, effective July 1, 2005. The first year fringe benefit costs for new positions do not include pension costs. The state's pension contribution is based upon the prior year's certification by the actuary for the State Employees Retirement System (SERS). The SERS 2005-06 fringe benefit rate is 34. 7%, which when combined with the non pension fringe benefit rate would total 58. 3%.