LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7246 NOTE PREPARED: Jan 5, 2025
BILL NUMBER: HB 1198 BILL AMENDED:
SUBJECT: Local Public Work Projects.
FIRST AUTHOR: Rep. Lawson BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: Local
DEDICATED
FEDERAL
Summary of Legislation: This bill changes the amount of a public work project that a board may perform
using its own workforce, without awarding a contract, from an estimated cost of less than $250,000 to an
estimated cost of less than $500,000.
Effective Date: July 1, 2025.
Explanation of State Expenditures:
Explanation of State Revenues:
Explanation of Local Expenditures: The overall impact on local expenditures is indeterminable. The
actual fiscal impact will vary from locality to locality and will be contingent on how many work projects
reach the revised threshold to go through the public bidding process. The bill’s requirements pertaining to
the public works project cost thresholds may result in a decrease in the administrative workload for the
applicable local unit of government if there is a decrease in the need to go through the public bidding process.
However, if the local unit’s public works board had to go through the public bidding process, it is possible
that a contractor could come in at a lower bid than what it would cost to perform the work using the unit’s
own workers and equipment.
Explanation of Local Revenues:
State Agencies Affected:
Local Agencies Affected: Local public works boards.
Information Sources:
Fiscal Analyst: James Johnson, 317-232-9869.
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