NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

State Highway and Transportation Department

SUMMARY

Synopsis of Bill

This bill appropriates $610.0 from the General Fund to the State Highway and Transportation Department (SHTD) for expenditure in FY00-01 to reinstate the Local Government Assistance Bureau within the department.

Significant Issues

The Local Government Assistance Bureau of the Engineering Design Division was eliminated as a result of FTE and budget reductions in the department during the 1999 Legislative Session. This function was determined by the department to be the least critical to the department's road program and was selected for elimination in FY99.

The bill does not provide additional FTE for reinstatement of the program.

FISCAL IMPLICATIONS

This bill appropriates General Funds for SHTD operations instead of State Road Funds which is the state funding source the department operates from.

The appropriation in the bill ($610.0) is not sufficient to cover expenses of operation for two fiscal years. It is approximately $153.2 under the estimated requirement for FY00-01.

ADMINISTRATIVE IMPLICATIONS

According to SHTD the bill does not address new FTE, office space, computers and furniture needed to make the bureau operational.

OTHER SUBSTANTIVE ISSUES

Without this bureau, SHTD is presently unable to provide assistance to local communities concerning road infrastructure projects.

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