Survey Results, part 2: Process for Prepartion of Fiscal Notes |
|
State |
Description of process for preparation of fiscal notes |
Process for prioritizing fiscal note requests. |
Process for developing assumptions and range estimates about a bill's fiscal impact. |
Process, number, and reasons for fiscal note revision requests. |
|
AK |
Prepared by agency program manager, reviewed by administrative or budget personnel, approved by division director, approved by agency commissioner, submitted to Legislature, and copies distributed to OMB by Governor's legislative office. |
No priority given. Fiscal notes are attached to legislation and go through the legislative hearing process. |
Fiscal impact is determined at the program level. |
Revisions are requested by the legislature as bills move through committees; generally, revisions occur because of changes in the legislation in committees. |
|
AL |
No information available |
No information available |
No information available |
No information available |
|
AR |
No information available |
No information available |
No information available |
No information available |
|
AZ |
Fiscal notes prepared at legislator's request. Requests are submitted to staff member designated fiscal note coordinator, who assigns request to appropriate analyst/ economist. Note submitted to Director for final review. |
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|
CA |
Prepared by staff according to assigned program areas. There is no internal review process with experienced staff; with less experienced staff, a draft is reviewed and prepared by a senior staff person. No formal review process in place. |
No priority. All bills analyzed prior to hearing by the committee. |
Information is gathered from state and local government agencies. Where possible, a "concrete" number for each year is given over a 3- year fiscal period. |
N/A |
|
CO |
Bills assigned to analysts based upon subject matter and committee assignment. |
Fiscal notes are prepared on every bill and concurrent resolution before they can be acted upon in the 1st committee |
Assumptions derived from interviews with affected agencies, departments, etc. |
Notes revised when necessary. Procedure is to revise all fiscal notes when bills are amended by first standing committee prior to being heard in either House/ Senate Appropriations committee. |
|
CT |
No information available |
No information available |
No information available |
No information available |
|
DE |
No information available |
No information available |
No information available |
No information available |
|
FL |
F.R.C makes written requests to potentially affected agencies for fiscal notes. Staff director of each committee must approve bill analysis before committee hears bill. |
Once chair of committee decides to hear a bill, priority is set for staff. |
Typically, fiscal note will have one set of numbers rather than a range. When a range is given the high and low estimates will often be attributed to a state agency/ association that provided the outlying estimate. |
Updated fiscal information requested as appropriate. Reasons for revision requests include bill amendments, changed conditions or unbelievable agency fiscal analyses. |
|
GA |
Centralized process, when note is requested, the analyst and auditor discuss the financial impact with input from the state agency; one analyst coordinates all fiscal notes with analysts in the Budget Office, and auditors in the Dept. of Audits; note is drafted and coordinated between both offices; the final note is signed by the Director of the Office of Planning and Budget and the State Auditor, then forwarded to the appropriate committee chair. |
Priority given in order of request. |
Assumptions are made through the collaboration of the affected state agency, the State Auditor, and the analysts; range estimates are often used in the narrative portion of notes. |
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|
HI |
No information available |
No information available |
No information available |
No information available |
|
ID |
No requirement for fiscal notes to be reviewed by fiscal office prior to being printed. Review and approval done by germane committees. Some fiscal notes done by request. |
Notes prioritized as per request. |
Range estimates not usually used. |
Occasional revisions made to modify inaccurate or incomplete data. |
|
IL |
Unit manager assigns fiscal note request. Analyst, Manager, and Director must sign Fiscal note. |
Requests direct from Legislature are given priority. |
Range estimates are given using various economic and/ or budgetary methods. |
Revisions made when bill is amended. |
|
IN |
Analyst prepares fiscal impact statement according to standardized form. Each analyst works in specific area(s) of discipline. Statement is subject to two- tier review before completion. |
Individual legislators can request priority. |
Assumptions based on best information available. OFMA relies on Indiana University, Indiana Business Center for Indiana Demographics; and Statistical Abstract of U.S. for national statistics. Range estimates provided if appropriate. |
N/A |
|
IA |
Request assigned to analyst and given short title by coordinator; Analyst determines if Fiscal note is required; If yes, analyst determines Agencies for information request; Analyst requests and receives information from agencies; Update Fiscal note tracking system; write Fiscal note; submit note for editing; returned for approval; submitted for signature; copy filed with Clerk for respective chamber. |
Director and Deputy Director cross- check bill on debate calendar with bills requiring a fiscal note. |
Assumptions should identify elements used in calculations to arrive at estimate. Analysts include formulas used in calculation of estimate if it simplifies the explanation or if the cost is formula- driven. |
Revisions made if fiscal note is erroneous, additional information is available, or if amendment changes impact. |
|
KS |
Bill is assigned to analyst who seeks appropriate information from agencies, local governments, internal sources, etc. Analyst prepares initial draft, which is edited by one of two fiscal note coordinators. Edited draft is given to the Director of the Budget for further editing/ signature. |
Goal is to produce fiscal note by bill's first hearing in committee. |
Division seeks information from every appropriate source. Range estimates used when appropriate. |
Revision requests made by individual legislators. Revised fiscal notes issued only if reconsideration shows merit for revision. Revisions made when there is some disagreement with the assumptions used in developing the fiscal note. |
|
KY |
Centralized. Budget review office and Appropriations and Revenue Office are units of the Legislative Research Commission. Budget and Tax staff prepares fiscal impact statements on bills affecting state finance. Process operates under House and Senate Rules. |
Chamber request on 'Orders of the Day' has top priority. Requests made by sponsor, chair or majority on bills/ amendments pending committee action have second priority and Sponsor's request has third priority action. |
Fiscal estimate may be a specific figure, a range of figures or indeterminable due to the absence or reliable or relevant data. |
Not applicable |
|
ME |
All 8 analysts assigned to "policy areas" and are responsible for preparing fiscal notes for all bills and amendments in their policy area. Potentially affected Agencies are notified for fiscal estimates. One of the 8 analysts, a Principal Analyst, is specifically responsible for coordinating the fiscal note process, including the final release. |
Turn around period usually left to the discretion of the Staff, Joint Standing Committee or individual Legislator. Goal is to complete fiscal note for each bill prior to its public hearing. |
Assumptions based on fiscal estimates provided by state agencies with potential to be affected by proposed legislation. If bill's specific impact cannot be determined, range estimate is mentioned in narrative description of fiscal note. |
Revisions made on a regular basis based on more current data or to correct a mistake. |
|
MD |
Information is requested from appropriate state agency(s) and/ or local government(s). Analyst assigned to the bill reviews response for reasonableness and accuracy and may contact source for clarification or additional information. Responses are subject to considerable scrutiny. Received information is taken into account, but not always used when writing the fiscal note. |
Fiscal notes are prepared for all bills in time for bill hearings. |
Certain fiscal assumptions updated each year. Updated assumptions/ guidelines are sent to agencies prior to session. Range estimates used when appropriate. |
Notes are revised after amendments by full House or Senate, when mistakes are made, or updated or clarifying information is received. |
|
MA |
Fiscal note is the last item to be completed as an appropriations bill leaves the Ways and Means committee. Staff total the amount of appropriations, net of revenue generated and that is what becomes the fiscal note. |
No process for prioritization- fiscal notes done as needed as bills leave committee. |
Fiscal impact depends on type of bill. |
No Legislative Fiscal Office in state. |
|
MI |
Fiscal analysts assigned bills at introduction, fiscal notes are prepared before committee deliberates bill, Fiscal note is updated as bill is amended at subcommittee, committee, or floor level. Senate bill analyses are prepared by the Senate Fiscal agency- House Fiscal agency reviews and revises as the Senate bill moves through the House. |
No prioritization process other than having the fiscal note ready for committee deliberations. |
Assumptions developed by researching the topic and developing criteria for estimate. An explanation of the methodology is included in the fiscal note. Range estimates used when appropriate. |
N/A |
|
MN |
Decentralized process- Department of Finance assistant commissioner designated Fiscal Note coordinator. He/ She is notified about fiscal note request on a bill, determines affected division(s), and refers the request to that division for preparation. Note is then returned to coordinator for review and entry into Fiscal Note system. Upon review and approval by Executive budget officer for Dept. of Finance, it is sent to the Legislature. |
Fiscal note is assigned due date once request is made. Hence priority determined by due date. |
Assumptions developed based on the following factors: (i) One- time startup costs; (ii) number and kinds of personnel required to run program; (iii) are costs/ revenue affected evenly over time?; (iv) Factors likely to affect costs/ revenue from year to year; (v) demand for the program; (vi) effective date for program; (vii) lag period before program's full effects are felt; (viii)
Agencies do provide range estimates. |
Revision requests made due to an error in original fiscal note or an invalid assumption made by agency about intent of bill. |
|
MS |
Centralized- Fiscal note requests received by Executive Director from individual legislators. Requests assigned to either a division manager or the General Counsel of the Committee. Receiving manager reviews the request, then assigns it to a staff member who has sufficient time and who is not assigned to other Committee activities. Manager reviews the legislation before assigning it to staff. Staff member conducts research, prepares the fiscal note and returns the draft to the manager, who reviews the note. After required corrections are made, the draft is passed to the Executive Director for his review and comments. If the fiscal note meets the Executive Director's approval, he/ she signs it and it is sent to the requesting legislator. |
Notes are produced on a first- come, first- served basis. |
No clear- cut method by which assumptions are made in fiscal notes. Worst- case scenarios for state general fund impact rather than a range of possibilities. |
Revision Requests made by individual legislators due to omission of certain factors in the analysis. |
|
MO |
Oversight Division receives legislative draft and assigns it to analyst. Analyst reviews draft to determine which State agencies and/ or local governments would be affected by proposal. Draft is forwarded to agencies for review and response. Once analysts receive fiscal impact statements, they are compiled into one fiscal note, reviewed by Fiscal Note coordinator, and forwarded to Director for review and approval. |
Priority is in the following order:
Bills scheduled for committee hearing;
Bills on the formal House or Senate Calendar;
Proposals with bill numbers; and
Legislative/ amendment drafts upon member's request. |
Assumptions prepared by State agencies and local governments. |
Only means of requesting revision is be requesting for a hearing on the matter. Individual legislators may have Oversight subcommittee review fiscal note. Subcommittee may vote to change fiscal note if is so desires. |
|
MT |
Note is assigned to affected agencies. Agencies submit drafts to Budget Office. Drafts are reviewed, combined and edited by Budget Office. Fiscal note is signed by Director and sent to bill sponsor for signature. Note is printed with or without sponsor's signature. |
All requests due in 6 days unless presiding officer of the Chamber grants permission to delay the note. |
Office has standard assumptions for inflation and revenue growth numbers. Other assumptions left to agency's discretion. Office reserves the right to change the draft in case of a disagreement. |
Legislators may request fiscal note revisions. |
|
NC |
Fiscal note formally requested by legislator after bill's introduction in Chamber. Director assigns bill to either an individual analyst or a team (specializing in a particular policy area). Note is prepared by analyst and returned to Director for review and approval. |
No formal prioritization process. Notes prepared on a "first in, first out" basis. There is a turn- around period of 2 weeks for incarceration bills and 2 legislative days for all other bills. |
FRD relies heavily on the impacted agency for information and models to develop assumptions. Range estimates used when appropriate. |
Revisions are requested by legislators and done on revised bills or when new information is available. |
|
ND |
Each agency has its own process. |
N/A |
N/A- varies by agency |
Revisions requested when bill is amended or when revised revenue estimates are released. |
|
NE |
Introduced bills assigned to individual program and budget analysts within LFO responsible for preparing fiscal note prior to bill's public hearing. Bill is sent to affected state agencies and a sample of cities and counties for their input on the potential fiscal impact. Responses are sent to Governor's budget office for review and comments. Analyst prepares fiscal note based on information gathered from above- named sources. Fiscal Note Coordinator, as final quality check, reviews fiscal note. |
Priority based on bill's public hearing date. Bills with earliest hearing date done first. |
Methods used to develop assumptions on a bill's impact include a review of the agency's estimate, comparison to a similar bill, information found by research on the internet and familiarity with the agency's current budget. Providing a range of the fiscal impact is acceptable and sometimes necessary. |
Fiscal notes revised each time bill moves to next stage of debate, if amendments have been adopted, which would change the bill's fiscal impact. Revised estimates solicited from affected agencies and political subdivisions. Less often, bills revised to reflect additional information and to correct errors. |
|
NH |
Note prepared by analyst with data provided by state and/ or local agencies as well as other sources deemed reliable by the analyst. Fiscal note coordinators, identified by each agency are responsible for coordinating fiscal note inquiries. |
Agency allowed 5 working days to complete initial worksheets, and 3 working days for bill amendments. No prioritization process. |
Explain why there will be a cost; Describe costs that can be absorbed without additional funding; Show all calculations used in preparing fiscal impact note; State year if calculations are based on revenues or expenditures from a particular year; state any percentage increase used to determine impact for ensuing years. |
No information available |
|
NJ |
LBFO must determine that fiscal note is required on a bill before bill is forwarded to State Department Commission or agency authorized to carry out purpose of the bill. The agency shall prepare and return to the Office of Management and Budget a fiscal worksheet containing the most accurate estimate possible of the amount by which expenditures or revenues will be increased or decreased for the State or any of its political subdivisions. |
No formal prioritization mechanism in place- fiscal notes are requested and processed as the bills are introduced (this is done by working with the leadership of both Chambers). |
Information received from the departments, agencies or commissions are one source developing assumptions. Range estimates incorporated into fiscal note where warranted. |
Revisions made by impacted departments, agencies or commissions. A number of revisions are technical in nature or in some way do not affect the fiscal portion of the bill. Notes may be revised when the bill is amended to the point that the expenditures or revenues indicated in the original bill have changed significantly, or some other pertinent information is changed in the revision. Note may also be revised if bill sponsor objects to the fiscal note and the objection is determined to be of merit. |
|
NM |
No information available |
No information available |
No information available |
No information available |
|
NV |
Fiscal Analysis Division requests state agency/ local government fiscal notes for all bills creating an adverse fiscal effect. Notes prepared by State agencies and sent to Governor's Budget Office for Review prior to return to F.A.D. Local governments submit information directly to F.A.D. Division prepares fiscal note. |
No process by which fiscal note requests are prioritized. |
State agencies requested to provide projected fiscal effect (numbers) supported by narrative if appropriate. |
Revisions made to fiscal note only at the request of a committee chairman. |
|
NY |
No information available |
No information available |
No information available |
No information available |
|
OH |
No information available |
No information available |
No information available |
No information available |
|
OK |
Fiscal analysts assigned bills by policy area. Each analyst prepares fiscal note, which is reviewed by Director prior to distribution. |
No prioritization process |
Assumptions developed with the assistance of agency personnel. |
N/A |
|
OR |
No information available |
No information available |
No information available |
No information available |
|
PA |
No information available |
No information available |
No information available |
No information available |
|
RI |
No information available |
No information available |
No information available |
No information available |
|
SC |
Legislative coordinator reviews legislation introduced and logs in bills having possible state tax or local government revenue impact. |
Committee requests are logged in by date, Committee notifies BEA as bills come up on committee agendas. Committee meeting dates prioritize items. |
Assumptions developed by researching tax law or local government code sections effected. Information is requested from appropriate State Agency or group impacted by legislation to formulate estimated impact. Specific amount given for each impact. |
Revisions only made if proposed legislation has been amended and such amendments have an effect on the revenue impact statement prepared for the original version of the legislation. |
|
SD |
Fiscal Chief prepares fiscal notes- all or part of fiscal note may be assigned to another analyst. |
No formal process |
Assumptions vary with nature of fiscal note. Range estimates provided when appropriate. |
No revision requests made |
|
TN |
Bills referred to various state agencies, commissions and offices for comment on the fiscal impact related to the functions/ programs of such agency, commission or office. Support forms returned and used as a basis for preparation of fiscal notes. Additional information gathered from affected interest groups, associations, etc. if needed. Notes drafted by Fiscal Review committee staff and submitted to assistant director and executive director for review and approval. Once approved, notes transmitted to bill tracking system available to all legislative staff. |
Requests prioritized based on their placement on committee calendars. |
Assumptions developed through contact with affected agency, past experience with similar legislation, and information gained through further research. Range estimates not usually used. |
Bill sponsor or another member of the General Assembly may request revisions. Revisions requested when additional information is made available that was not considered in the preparation of the original fiscal note. |
|
TX |
Committee clerk sends the note request to the Legislative Budget Board (LBB); if there is a fiscal implication determined, the affected state agency and the LBB collaborate to complete the note; the LBB Director approves note and it is sent to the committee clerk. |
No formal prioritization process |
Analysts collaborate with State agencies to determine the fiscal impact of legislation; range estimates are provided when appropriate. |
N/A |
|
UT |
Bill logged into office and assigned to analyst responsible for the section of the State Code affected by the bill; bill reviewed by Analyst and sent, along with fiscal note worksheet, to appropriate agency for information (agency has 48 hours to respond); analyst gathers responses, combines them with his/ her own analysis and writes the fiscal note; fiscal note is sent supervisor assigned to chamber for review; fiscal note is typed I the final form and sent to Legislative Fiscal Analyst for final review and approval; approved note is sent to bill sponsor for informational purposes (sponsor has 24 hours to respond with concerns or approval); note is then sent to appropriate docket clerk for printing. |
Legislators are authorized 3 priority bills. These bills are given first priority to have fiscal notes completed, but they are not prioritized for funding until near the end of the Session. Bills with fiscal note over $10,000 are held until the last week of the Session. The House and Senate caucuses prioritize lists of fiscal notes and the top bills are approved for passage. Legislators vote for their top picks. |
Assumptions developed through Agency/ expert input; costing of specific activities/ items identified in the legislation; comparison with other States/ Agencies/ organizations/ activities; Extrapolation; Trend analysis; Regression analysis; Other. |
Notes are amended if additional information, which changes the outcome, is received. Fiscal notes are also prepared on amended bills. |
|
VA |
No information available |
No information available |
No information available |
No information available |
|
VT |
Fiscal note requests go to Joint Fiscal Office staff members, who contact agencies for data, do analysis and submit the note. |
Requests prioritized by rank- i.e. requests from Finance/ Appropriations committee chairs or leadership tend to get highest priority. |
Assumptions are developed through analysis and discussion with agencies. Ranges are provided when data is less conclusive. Assumptions are stated in fiscal notes. |
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|
WA |
Procedure is decentralized. Assignment for writing fiscal note made to staff person with most expertise in area affected by bill. Staff person drafts note after consulting with other staff members or the supervisor. Once note is completed, author's supervisor reviews and approves the fiscal note. Agency's deputy director also reviews some fiscal notes. |
Prioritized according to scheduled legislative committee hearing. |
Assumptions developed by agencies that write fiscal notes. Agencies instructed to develop assumptions by talking to bill's sponsor or legislative staff person responsible for the bill, and by discussing the bill with other that have also been assigned a fiscal note on the same bill. For complex bills, agencies are encouraged to convene a meeting of affected agencies, OFM Budget staff, and legislative fiscal staff to discuss the assumptions regarding the bill.
Range estimates provided in narrative portion of fiscal note. |
Total number of fiscal note revision requests range from 10- 20 each session. Most frequent reason for revision requests is the legislative staff person or legislator does not agree with the assumptions made by the agency writing the fiscal note, or missing information needs to be added. |
|
WI |
Centralized process. The budget staff coordinate and perform research, move the draft to the review stage with the Division Administrator and the Secretary's office, obtain signatures, then route the estimate to the State Budget Office, who send it back to the Legislature. |
No priority given |
Assumptions developed through program administration experience and/ or collaboration with other agencies; high/ low range estimates are often provided. |
Revisions are something requested from sponsoring legislators; these revisions are only done in the event of an error in the original estimate, or a misunderstanding about the intent of the legislation; revisions are rare, at the rate of half per session; reasons are usually: 1) High cost of legislation and 2) High impact on local government. |
|
WV |
N/A |
Requests are forwarded to the applicable executive agency upon introduction of the legislation; however, many agencies do not prepare the note until they are notified of the committee's agenda. |
N/A |
N/A |
|
WY |
1 person handles nearly all fiscal notes. Most notes reviewed by another analyst within the division. Agency Fiscal Personnel prepare information to be used in note. Information is reviewed and signed by Director. |
5- day turn around time until roughly two weeks before session. Then turn- around is reduced to 3 days, and finally 1 day when session begins (exceptions are made). |
Point estimates generally, not ranges. Most, if not all, assumptions are described within note itself. |
Legislative Fiscal Office does request fiscal note revisions. Additional information/ clarification is requested about 20-30% of the time. Mostly due to unclear assumptions or documentation. |
