LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 593 HLS 24RS 918
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 20, 2024 11:12 AM Author: HILFERTY
Dept./Agy.: New Orleans Sewerage and Water Board
Subject: Transfer of New Orleans Sewerage and Water Board Analyst: Kimberly Fruge
SEWERAGE/N O WATER BD EN INCREASE LF EX See Note Page 1 of 1
Provides for a transfer of the employees of the New Orleans sewerage and water board from the city civil service system to
the state civil service system
Proposed law allows the New Orleans Sewerage and Water Board to employ a person who is not a New Orleans resident for any non-
executive management position after the position as been advertised for 90 days. Under current law, employees of the Sewerage and
Water Board must be New Orleans residents.
Proposed law transfers the employees of the New Orleans Sewerage and Water Board from the New Orleans city civil service system to the
state civil service system.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds INCREASE INCREASE INCREASE INCREASE INCREASE
Annual Total
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. INCREASE INCREASE INCREASE INCREASE INCREASE
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
EXPENDITURE EXPLANATION
NOTE: According to committee testimony on 4/5/25, proposed law as amended is not meant to transfer employees from the
city civil service to the state civil service and instead is intended to allow the New Orleans Sewerage and Water Board to
employ a person who is not a New Orleans resident for any non-executive management position after it has been advertised
for 90 days; however, proposed law in its current posture includes the transfer of employees in Section 2 of the bill. If
proposed law does not transfer employees from the city system then there will be no expenditure or revenue impact to state
or local funds. This fiscal note contemplates the costs if the transfer does occur as indicated in Section 2 of proposed law.
Proposed law, in its current posture, will result in an indeterminable increase in Local Funds expenditures for the New Orleans Sewerage
and Water Board and may lead to an increase in SGR expenditures for the State Civil Service to transfer employees from the city civil
service. The Department of State Civil Service anticipates that the cost of adding the New Orleans Water and Sewerage Board to the state
civil service system to be minimal, but is uncertain how much time, effort, and resources will be needed to add the employees to the
system. To the extent the workload is greater than anticipated the department may realize an increase in expenditures.
According to a representative of the New Orleans Sewerage and Water Board, they currently do not pay any fees to be a part of the city
civil service. Under the State Civil Service system, the Board would be responsible for paying the fees set forth in RS 42:1383, which is
based on a percentage of annual gross salaries within the agency. The total fee the Board will be required to pay is indeterminable until
State Civil Service is able to assess each position for the existing jobs. According to the New Orleans City Civil Service, there are
approximately 1,230 classified employees at the Board.
The New Orleans City Civil Service is unable to estimate the impact of transferring the employees but expects any impact to be minimal.
REVENUE EXPLANATION
Proposed law will result in an indeterminable increase in SGR revenues for the Department of State Civil Service to incorporate the New
Orleans Sewerage and Water Board into the state system. The department reports that the Board will be added to the Statewide Cost
Allocation Plan and will charge the Board based on a percentage of annual gross salaries within the agency. The total revenue increase is
indeterminable until the State Civil Service is able to assess each position for the existing jobs. According to the New Orleans City Civil
Service, there are approximately 1,230 classified employees at the Board.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
13.5.2 >= $500,000 Annual Tax or Fee Patrice Thomas
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Deputy Fiscal Officer


Statutes affected:
HB593 Original:
HB593 Engrossed:
HB593 Reengrossed:
HB593 Enrolled:
HB593 Act :