Revision: March 12, 2018, 9:13 a.m.
HB 1817-FN - AS AMENDED BY THE HOUSE
8Feb2018... 0345h
2018 SESSION
18-2958
05/04
HOUSE BILL 1817-FN
SPONSORS: Rep. Hennessey, Graf. 1; Rep. Kurk, Hills. 2; Rep. F. McCarthy, Carr. 2; Rep. Walz, Merr. 23; Sen. Woodburn, Dist 1; Sen. Feltes, Dist 15; Sen. Innis, Dist 24
COMMITTEE: Executive Departments and Administration
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AMENDED ANALYSIS
This bill establishes the position of state demographer in the office of strategic initiatives; establishes a commission on demographic trends; requires certain state agencies to prepare a 10-year current services budget for identified programs; and requires the legislative budget assistant to include a demographic analysis as part of the fiscal note for certain legislation.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
8Feb2018... 0345h 18-2958
05/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eighteen
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Subdivision; Office of Strategic Initiatives; State Demographer; Commission on Demographic Trends. Amend RSA 4-C by inserting after section 35 the following new subdivision:
State Demography
4-C:36 State Demographer; Position Established.
I. There is established within the office of strategic initiatives, the position of state demographer. The state demographer shall be a contractor or classified employee.
II. The state demographer shall be professionally competent in demography and possess demonstrated ability based on past performance.
III. The responsibilities of the demographer shall include, but not be limited to, developing demographic projections and working with the United States Census Bureau.
IV. The state demographer shall provide assistance and data to the legislative budget assistant in the preparation of demographic analyses requested pursuant to RSA 14:46, VII.
4-C:37 Commission on Demographic Trends.
I. There is established a commission on demographic trends. The commission shall work with the state demographer to develop long-term net migration goals, review and recommend programs and legislation designed to meet the net migration goals, and monitor the success of any such programs.
II. The members of the commission shall be as follows:
(a) Six New Hampshire citizens who have expertise to support the mission of the commission, appointed by and serving at the pleasure of the governor.
(b) Four members of the house of representatives, appointed by the speaker of the house of representatives.
(c) One member of the senate, appointed by the president of the senate.
(d) The state demographer, contracted demographer, or designee of the director of the office of strategic initiatives.
III. The commission shall elect a chairperson from its membership, and any other officers it deems necessary. The terms of the elected members of the commission shall be coterminous with their terms in office; the terms of all other appointed members shall be 3 years. In the event of a vacancy, a new member shall be appointed for the unexpired term in the same manner as the original appointment. The first meeting of the commission shall be called by the first-named house member. The first meeting of the commission shall be held within 45 days of the effective date of this section. Seven members of the commission shall constitute a quorum.
IV. The commission shall report at least annually to the governor, speaker of the house of representatives, president of the senate, clerk of the house of representatives, clerk of the senate, and the state library. The annual report shall be posted on the general court website.
V. The commission shall create a biennial scorecard on New Hampshire’s demographic condition and trends, which shall be distributed to the governor, speaker of the house of representatives, president of the senate, clerk of the house of representatives, clerk of the senate, county commissioners, and the state library. The scorecard also shall be posted on the general court website.
2 New Section; Budget and Appropriations; Ten-Year Current Services Budget. Amend RSA 9 by inserting after section 9:9-c the following new section:
9:9-d Ten-Year Current Services Budget.
I. Each of the following state agencies shall project its portion of the state budget forward 10 years for the identified service or program:
(a) The department of administrative services: state employer retirement contributions, state retiree health insurance, and in conjunction with the department of revenue administration, state revenues.
(b) The state treasurer: debt service.
(c) The department of health and human services: uncompensated care, Medicaid care management, Medicaid-funded home and community based services known as the Choices for Independence Program, nursing home services, and developmental services.
(d) The department of education: adequate education grants.
II. The projected budget shall be based on current policy, programs, and tax rates, and shall be adjusted only for demographically-induced changes in demand for public services and projected effects on state government revenues.
3 New Paragraph; Preparation of Fiscal Notes; Demographic Analysis. Amend RSA 14:46 by inserting after paragraph VI the following new paragraph:
VII.(a) The speaker of the house of representatives, the minority leader of the house of representatives, the president of the senate, or the minority leader of the senate may request the legislative budget assistant to prepare and include in the fiscal note a demographic analysis on bills and resolutions having an effect on the demographics of the state. Each requestor shall be entitled to no more than 5 such requests during each annual legislative session.
(b) When possible, the demographic analysis contained in a fiscal note pursuant to subparagraph (a) shall be prepared and incorporated prior to the introduction of the bill or resolution. The demographic analysis shall accompany the bill throughout its course of passage through the general court and to the governor for action and shall be amended as necessary to correct errors or to agree with substantive amendments to the bill.
(c) In preparation of demographic analyses required pursuant to subparagraph (a), the legislative budget assistant shall seek the assistance and data from the state demographer or may request assistance from any other source of data which is deemed reliable, including but not limited to private individuals, research and educational organizations, corporations, and associations located within or outside the state.
4 Phase-in, Funding for Position of State Demographer. The state demographer shall be a part-time contractor for the fiscal years 2018 and 2019 and a full-time position beginning in fiscal year 2020.
I. Section 3 of this act shall take effect July 1, 2019.
II. The remainder of this act shall take effect upon its passage.
18-2958
Amended 3/7/18
HB 1817-FN- FISCAL NOTE
AS AMENDED BY THE HOUSE (AMENDMENT #2018-0345h)
AN ACT establishing the position of state demographer and a commission on demographic trends; requiring state agencies to prepare a 10-year current services budget; and relative to the inclusion of a demographic analysis as part of the legislative fiscal note process.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2019 | FY 2020 | FY 2021 | FY 2022 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
Funding Source: | [ X ] General [ ] Education [ ] Highway [ ] Other | |||
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METHODOLOGY:
The Office of Strategic Initiatives makes the following assumptions concerning the fiscal impact of this bill:
Based on these assumptions, the Office provides the following cost estimates:
| FY 2019 | FY 2020 | FY 2021 | FY 2022 |
Salary | $0 | $72,911 | $72,911 | $72,911 |
Benefits | $0 | $33,906 | $35,231 | $36,573 |
Current Expense | $0 | $300 | $300 | $300 |
Office Space | $0 | $2,500 | $2,600 | $2,700 |
Equipment | $0 | $5,000 | $500 | $500 |
Travel | $0 | $500 | $500 | $500 |
Specialized Software | $0 | $6,000 | $0 | $0 |
Consultant | Indeterminable | $0 | $0 | $0 |
Total: | $0 | $121,117 | $112,042 | $113,484 |
The Department of Administrative Services determined section 2 of this bill would have an indeterminable impact on State expenditures. This section would require four state agencies to prepare a 10-year budget projection for certain programs adjusted only for demographically-induced changes in demand for public services and projected effects on state government revenues. The Department assumes this requirement could be a component of, or a supplement to, the current requirements contained in RSA 9:4 for agencies to submit biennial budget requests. The Department is unable to determine the fiscal impact without additional information on the expected format of the requests, the assumptions that will need to be made, or the required changes and costs to update the State's budget system.
The Department of Health and Human Services assumes proposed RSA 9:9-d would require development of budget projections which are accurate representations of future costs. The Department believes such projections will require consideration of other factors in addition to information on demographic changes in New Hampshire. The Department indicates an actuary is currently used to develop certain budget projections. The Department believes, in order to provide accurate 10 year budget projections, the technical services of an external actuary would be required. The Department indicates the cost for such services is indeterminable at this time.
The Treasury Department indicates, starting with the FY 2020-2021 biennial budget, the Treasury would be required to project the cost of debt services for ten years based on current policy, programs and tax rates and adjusted for demographically-induced changes in the demand for state services and the projected effect on state revenues. The Department does not anticipate this bill will have a fiscal impact on its operations. The Department currently prepares debt service projections for seven years as part of the annual Debt Affordability Study.
The Department of Education states the bill would require a 10 year budget projection for the cost of an adequate education. The Department states it could provide the required 10-year projection with no additional resources.
The Office of Legislative Budget Assistant indicates the bill would require up to 20 fiscal notes to include demographic analysis. To the extent possible, the additional duties will be handled with existing resources.
AGENCIES CONTACTED:
Office of Strategic Initiatives, Office of Legislative Budget Assistant, Departments of Administrative Services, Treasury, Education, and Health and Human Services