FISCAL NOTE
Date Requested: February 26, 2021
Time Requested: 12:05 PM |
| Agency: |
Administration, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2726 |
Introduced |
SB474 |
|
|---|
| CBD Subject: |
Finance and Administration |
|---|
|
FUND(S):
N/A
Sources of Revenue:
Other Fund Does not affect the Purchasing Division
Legislation creates:
Creates New Program
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This legislation would not have a direct fiscal impact on the Purchasing Division, but there are several areas of potential impact to the state overall. The legislation reduces oversight of the Purchasing Division from the procurement process for DOH. Giving the authority to DOH to conduct the bidding process for approximately $58 million in goods and services, it is likely there will be increased audit costs, but the amount of those costs is unknown. And finally, this bill would decentralize procurement and thereby reduce aggregated spend on statewide contracts processed and maintained by the Purchasing Division. Reducing spend on those contracts will ultimately decrease the state’s buying power, potentially increasing the risk of higher prices bid by vendors over time.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2021
Increase/Decrease
(use"-") |
2022
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
This legislation would not have a direct fiscal impact on the Purchasing Division, but there are several areas of potential impact to the state overall. The legislation reduces oversight of the Purchasing Division from the procurement process for DOH. Giving the authority to DOH to conduct the bidding process for approximately $58 million in goods and services, it is likely there will be increased audit costs, but the amount of those costs is unknown. And finally, this bill would decentralize procurement and thereby reduce aggregated spend on statewide contracts processed and maintained by the Purchasing Division. Reducing spend on those contracts will ultimately decrease the state’s buying power, potentially increasing the risk of higher prices bid by vendors over time.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
Person submitting Fiscal Note: Samantha Knapp
Email Address: Samantha.S.Knapp@wv.gov