SENATE BILL REPORT
SB 5915
This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent. |
As of February 25, 2015
Title: An act relating to dynamic fiscal impact statements.
Brief Description: Concerning dynamic fiscal impact statements.
Sponsors: Senators Brown, Angel, Miloscia, Braun, Dansel, Schoesler, Hewitt and Chase.
Brief History:
Committee Activity: Ways & Means: 2/23/15.
SENATE COMMITTEE ON WAYS & MEANS |
Staff: Steve Jones (786-7440)
Background: A fiscal note is a statement of estimated fiscal impacts of proposed legislation. A fiscal note estimates the state and local government revenue and expenditure impact of the proposed legislation for the current fiscal biennium and for the following two biennia. Fiscal Notes are prepared by state agencies, and the process is supervised by the Office of Financial Management (OFM). Estimates of fiscal impacts are calculated under instructions issued by OFM.
Summary of Bill: Upon the request of a member of the fiscal committees of the Legislature, OFM must prepare a dynamic fiscal impact statement that estimates the net fiscal impact of the bill, including behavioral changes that may have an impact on the state economy as a whole. The request must be made at least 60 days prior to a legislative session, and the dynamic fiscal impact statement is prepared only if the bill has an annual revenue impact greater than $10 million. The act expires on June 30, 2022.
Appropriation: None.
Fiscal Note: Available.
Committee/Commission/Task Force Created: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.
Staff Summary of Public Testimony: PRO: To encourage a thriving state economy, dynamic fiscal impact statements will show the positive economic impact of state investments. This will tell the whole story, including the costs and the consequences. More information is better than less information. The dynamic fiscal impact statements will provide a more thoughtful analysis of pending legislation. This will result in fewer fiscal notes that have indeterminate findings. Local government will be helped by more complete fiscal analysis.
CON: Macroeconomic shifts are difficult to forecast, and such projections are unreliable and create uncertainty.
Persons Testifying: PRO: Senator Brown, prime sponsor; Amber Carter, Assn. of WA Business; Brian Enslow, WA Assn. of Counties.
CON: Kim Justice, WA State Budget and Policy Center.