|
|
A Drafting Guide for Statements of Purpose and Fiscal Notes
A statement of purpose is a brief explanation, in lay terms, of what a bill would do or
what changes a bill would make from existing law. It is important to type
statements of purpose and fiscal notes in courier font (10 or 12) so they
can be scanned for the Internet. Both may be prepared on the same page. If the statement of
purpose/fiscal note is lengthy, however, it is preferable to go to a second page rather than
to overfill one page. When preparing these statements, it is important to
leave adequate margins on all sides of
the page(s) so the type remains visible in legislative bill books. Please
leave at least a one-inch margin on the top, bottom and right-hand sides, and a margin of one-and-a-quarter to one-and-a-half-inches on the left. Please submit a paper copy as well as an
electronic copy to the appropriate committee secretary.
A fiscal note must explain
the impact on state or local government appropriations or expenditures of
funds, and must explain how the bill would increase or decrease revenues or
if it would require future appropriations of funds. The Idaho Legislature's
Joint Rule 18 defines fiscal note requirements in detail.
In preparing fiscal notes, the guidelines below should be followed:
- The contact person must be included on the statement of purpose and fiscal note. While not required
by Joint Rule 18, listing the telephone number for the contact person is helpful.
- The fiscal note should address the impact to the general fund in dollar terms, not exclusively in
statements of general economic benefit. If there is no impact to the general fund, then the note
should so state this.
- The note should address the fiscal impact on any other state fund or expenditure, not just the
general fund or general fund programs.
- Remember, Joint Rule 18 applies to fiscal impacts on local government as well.
- The note should identify the fiscal impact of at least one full fiscal year (not calendar year),
and care should be given to understanding the fiscal impact of legislation that is phased in or has
changing requirements over more than one fiscal year.
- Fiscal impacts should be concise--not to exceed one page and may be included on the same page as
the statement of purpose--and address the total fiscal impact of the legislation, not just the
mathematics of the changes, e.g. a fiscal impact that changes the grocery credit from $15 to $30
for an estimated 500,000 income tax filers should state: "Fiscal impact to state general fund revenues
is an estimated loss of $7,500,000 from individual income tax collections for FY 1995," as opposed to a
statement like, "an additional credit of $15 per filer would benefit 500,000 filers by doubling their
refund of sales tax paid on groceries, which amounts to another $300 worth of groceries that could be
purchased tax free."
- Fiscal notes should identify the source of revenues or funds affected, e.g. corporate income tax,
cigarette tax, mine license tax, etc., (or) Department of Commerce--Tourism Promotion Fund, etc.
Referencing the fund only is often not sufficient to identify the tax or fee source that is impacted.
- The committee to which the bill is assigned will review the statement of purpose and fiscal note to
be sure that they meet the above requirements.
A quick way to determine whether your fiscal note complies with requirements
is to check it against the following list:
- Contact person included?
- Telephone number of contact person listed? (optional)
- Impact to state general fund explained?
- Impact to other state funds or expenditures addressed?
- Impact on local government addressed?
- If fiscal impact of legislation is phased in over more than one fiscal year, does fiscal note
address impact of full fiscal year?
|
