COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:4599H.01I Bill No.:HB 2418 Subject:Economic Development; Department of Economic Development Type:Original Date:March 30, 2022Bill Summary:This proposal modifies the Missouri One Start Program.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025General Revenue
Fund*
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
Total Estimated Net
Effect on General
Revenue
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
*Oversight notes that Section 620.806.3, allows for new type of option within the Missouri One
Start Program – ‘recruitment services’ provided by the Missouri employers. Oversight assumes
the amount could reach the $250,000 threshold.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025MISSOURI ONE START
COMMUNITY COLLEGE NEW
JOB TRAINING FUND (0563)
$0
(Unknown) $0
MISSOURI ONE START
COMMUNITY COLLEGE NEW
JOB RETENTION TRAINING
FUND (717)
$0
(Unknown) $0
MISSOURI ONE START
COMMUNITY COLLEGE
TRAINING FUND
$0UnknownUnknownMISSOURI ONE START JOB
DEVELOPMENT FUND (0600)*
$0 or
Unknown
$0 or
Unknown
$0 or
Unknown
Total Estimated Net Effect on
Other State Funds
$0 or
Unknown
$0 or
Unknown
$0 or
Unknown
*Oversight notes that Section 620.806.3, allows for new type of tax credit for the Recruitment Services
provided by the Missouri employers.
Numbers within parentheses: () indicate costs or losses. L.R. No. 4599H.01I
Bill No. HB 2418
Page 2 of
March 30, 2022
BB:LR:OD
ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on FTE 000
☒ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☒ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Local Government$0$0$0 L.R. No. 4599H.01I
Bill No. HB 2418
Page 3 of
March 30, 2022
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FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Revenue (DOR) assume the proposal stops the Missouri One
Start Community College New Jobs Training Fund and the Missouri One Start Community
College Job Retention Training Fund and replaces them with the Missouri One Start Community
College Training Fund. This fund will receive both the new and retained job credits. DOR is
required to develop new forms for the reporting of these credits. The creation of the new form is
estimated at $10,000.
Oversight notes that officials from the DOR assume the proposal will have a direct fiscal impact
on their organization, and that the organization will need to create a new form to comply with the
proposal.
Officials from the Office of Administration – Budget & Planning (B&P) assume if more
projects utilize the training programs, these projects could also apply for other tax credits. If
more tax credits are issued, there could be an unknown decrease in General Revenue.
Conversely, to the extent this proposal encourages other economic activity, General and Total
State Revenue may be impacted, but B&P cannot estimate the induced revenues.
Oversight notes Section 620.803.1 states: The department shall establish a "Missouri One Start
Program" to assist companies with recruitment services. Furthermore, Section 620.806.3 states:
Funds in the Missouri One Start Job Development Fund shall be appropriated, for recruitment
services.
Oversight notes that the “recruitment services”, is new, allowing employers to receive
potentially more credits from the General Revenue which is currently being disbursed into the
Missouri One Start Development Fund. Therefore, Oversight will note Unknown negative
amount to the GR for purpose of recruitment (less money collected through withholding are now
being diverted to the Missouri One Start Development Fund), and Unknown positive amount of
money coming to the Missouri One Start Development Fund for a potential disbursement to
employers who are participating in the program.
Oversight notes that average expenditure per worker, from Missouri One Start Job Development
Fund, totaled $322.52 ($7,108,352/22,040) in FY 2017- FY 2019 period. Additionally, there
were more than 22,040 workers helped throughout the same period. Oversight notes it would
take only 775 existing or additional workers to reach $250,000 in spending due to the new
Recruitment Program participation.
Oversight notes that Missouri One Start Community College New Jobs Training Fund and the
Missouri One Start Community College Job Retention Training Fund will be replaced with the
Missouri One Start Community College Training Fund. L.R. No. 4599H.01I
Bill No. HB 2418
Page 4 of
March 30, 2022
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Oversight notes the proposal specifies the Missouri One Start Community College New Jobs
Training Fund and the Missouri One Start Community College Job Retention Training Fund both
shall receive withholding credits from DOR until June 30, 2023. All the unobligated credits
received on and after July 1, 2023 shall be transferred to the new fund, Missouri One Start
Community College Training Fund, created under the proposal. Therefore, Oversight will show
an unknown positive amount impact to the Missouri One Start Community College Training
Fund beginning FY 2024 and forward.
Lastly, will show Unknown amount (unobligated funds) being transferred from
Missouri One Start Community College New Jobs Training Fund and the Missouri One Start
Community College Job Retention Training Fund into the Missouri One Start Community
College Training Fund beginning FY 2024.
For informational purpose, Oversight included all actual expenditures under all three programs
below:
Source: https://oa.mo.gov/sites/default/files/FY_2021_DED_Budget_Request_Gov_Rec.pdf
Oversight excluded FY 2020 and 2021 due to the COVID-19 participations (fluctuations) within
any of the programs under the proposal.
F
Y 2017
F
Y 2018
F
Y 2019
M
issouri One Start Job Development
F
und (0600)
A
ctual Expenditures
1
1,175,945
$
4
,497,242
$
5
,651,870
$
C
ompanies Assisted
3
28
$
1
48
$
1
97
$
W
orkers Trained
3
1,003
1
6,666
1
8,451
M
issouri One Start Community College
N
ew Jobs Training Program (0563)
A
ctual Expenditures
4
,379,901
$
5
,600,211
$
4
,714,604
$
C
ompanies Assisted
1
5
1
6
1
2
W
orkers Trained
4
,923
5
,990
5
,720
A
nnual Cap
1
6,000,000
$
1
6,000,000
$
1
60,000,000
$
M
issouri One Start Community College
J
ob Retention Training Program (717)
A
ctual Expenditures
9
,028,757
$
3
,520,566
$
2
,780,863
$
C
ompanies Assisted
1
7
9 1
2
W
orkers Trained
6
,212
3
,957
4
,634
A
nnual Cap
1
0,000,000
$
1
0,000,000
$
1
0,000,000
$
L.R. No. 4599H.01I
Bill No. HB 2418
Page 5 of
March 30, 2022
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Officials from the Office of Administration, the Office of Administration – Administrative
Hearing Commission, the Department of Economic Development, the Department of
Higher Education and Workforce Development, the Department of Labor and Industrial
Relations, the Missouri Department of Transportation the Department of Elementary and
Secondary Education each assume the proposal will have no fiscal impact on their
organizations. Oversight does not have any information to the contrary. Therefore, Oversight
will reflect a zero impact in the fiscal note for these agencies.
Officials from the University of Missouri System assume the proposal will have no fiscal
impact on their organization. Oversight does not have any information to the contrary.
Therefore, Oversight will reflect a zero impact in the fiscal note for that agency.
Officials from the City of Kansas City and City of Springfield both assume the proposal will
have no fiscal impact on their organization. Oversight does not have any information to the
contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for those cities. L.R. No. 4599H.01I
Bill No. HB 2418
Page 6 of
March 30, 2022
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FISCAL IMPACT – State GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025GENERAL REVENUE FUND Cost – 620.806.3 - new ‘Recruitment
Program’ – revenues being diverted
into the Missouri One Start
Development Fund (p.3)
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
ESTIMATED NET EFFECT ON
THE GENERAL REVENUE FUND
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
MISSOURI ONE START
COMMUNITY COLLEGE NEW
JOB TRAINING FUND (0563)
Revenue Decline – 620.809.4-
Unobligated funds flowing to the new
fund (p.3,4)
$0
(Unknown) $0
ESTIMATED NET EFFECT ON
THE MISSOURI ONE START
COMMUNITY COLLEGE FUND
$0(Unknown)$0
MISSOURI ONE START
COMMUNITY COLLEGE NEW
JOB RETENTION TRAINING
FUND (717)
Revenue Decline – 620.809.4
Unobligated fund flowing to the new
fund (p.3,4)
$0(Unknown) $0
ESTIMATED NET EFFECT ON
THE MISSOURI ONE START
COMMUNITY COLLEGE JOB
RETENTION TRAINIING FUND
$0(Unknown)$0
MISSOURI ONE START JOB
DEVELOPMENT FUND (0600) L.R. No. 4599H.01I
Bill No. HB 2418
Page 7 of
March 30, 2022
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Revenue Gain – 620.806.3 – payment
for the Recruitment Program from GR
$0 or Unknown$0 or Unknown$0 or UnknownESTIMATED NET EFFECT ON
THE MISSOURI ONE START JOB
DEVELOPMENT FUND
$0 or
Unknown
$0 or
Unknown
$0 or
Unknown
MISSOURI ONE START
COMMUNITY COLLEGE
TRAINING FUND
Revenue Gain – 620.809.3- Money
flowing from both funds (p.3)
$0UnknownUnknownNET ESTIMATED EFFECT ON
THE MISSOURI ONE START
COMMUNITY COLLEGE
TRAINING FUND
$0UnknownUnknown
FISCAL IMPACT – Local GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025$0$0$0
FISCAL IMPACT – Small Business
Some of the small businesses would be allow to obtain tax credits associated with training, new
job creation, and recruitment, and as a result of this proposal.
FISCAL DESCRIPTION
This bill assists companies with recruitment services which is defined as the promotion of
workforce opportunities in Missouri.
The Department of Economic Development (department) is to establish guidelines and develop
an application form for a local education agency to submit on behalf of a qualified company who
is applying for benefits. The department may provide financial assistance for training projects
through the Missouri one start program from the Missouri One Start Job Development Fund to
qualified companies. The department is responsible to administer the recruitment services, while
the financial assistance for training projects is administered by a local education agency. L.R. No. 4599H.01I
Bill No. HB 2418
Page 8 of
March 30, 2022
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The department will disburse the funds from the "Missouri One Start Community College New
Jobs Training Fund" through June 30, 2023 into the special funds established by the community
college districts for training projects and the funds are used to pay for the training project costs.
Any unobligated funds on July 1, 2023 are transferred to the "Missouri One Start Community
College Training Fund" which has been created by this bill.
The Department of Revenue shall develop the forms to apply the credits to the funds for all new
and retained jobs credits. Beginning July 1, 2023, reimbursements made by all qualified
companies to the Missouri One Start Community College Training Fund shall be no less than all
allocations made by the department to all community college districts for all projects. A qualified
company's training project may include both new jobs and retained jobs.
The bill deletes the "Missouri One Start Job Training Joint Legislative Oversight Committee".
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Economic Development
Higher Education and Workforce Development
Department of Labor and Industrial Relations
Office of Administration – Administrative Hearing Commission
Office of Administration – Budget & Planning
Missouri Department of Transportation
Department of Elementary and Secondary Education
Department of Revenue
Office of Administration – Budget & Planning
University of Missouri System
City of Kansas City
City of Springfield
Julie MorffRoss StropeDirectorAssistant DirectorMarch 30, 2022March 30, 2022