LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 61 SLS 202ES 41
Bill Text Version: REENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.: REVISED
Date: October 19, 2020 2:26 PM Author: MIZELL
Dept./Agy.: Executive Office
Subject: Creates the state office of broadband and connectivity Analyst: Alan M. Boxberger
GOVERNMENT ORGANIZATION RE INCREASE GF EX See Note Page 1 of 2
Creates the office of broadband and connectivity. (gov sig) (Item #39)
Proposed law creates the office of broadband and connectivity (office), places it within the Office of the Governor, Division of
Administration, and requires the office to report to the governor and various committees; establishes appointment and
termination procedures for the executive director, and allows the executive director to carry out prescribed duties; requires
the executive director to submit an annual report to the legislature and provides for contents of the report; requires the
governor to direct other state agencies to assist the office; provides for the functions, powers, and duties of the office, which
serve to advance the expansion and accessibility of broadband and other connectivity services in the state; and provides the
office with the authority to contract with persons and government agencies in order to carry out those duties.
EXPENDITURES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. INCREASE INCREASE INCREASE INCREASE INCREASE
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
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
REVENUES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
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 $0 $0 $0 $0 $0 $0
EXPENDITURE EXPLANATION
Proposed law will result in a significant increase of SGF expenditures of approximately $483,000 on an annualized basis, of
which the Division of Administration reports it can absorb with existing budgetary and personnel resources all but
approximately $23,700 associated with increased operating expenses. Proposed law requires the appointment of an
executive director of the newly created Office of Broadband and Connectivity within the Office of the Governor, Division of
Administration. Proposed law creates the position of executive director and provides for an array of powers and duties,
primarily focusing on bridging public, private and individual resources together to facilitate the expansion of broadband and
connectivity infrastructure statewide.
The Division of Administration reports that the staffing requirements necessary to operate an effective Office of Broadband
and Connectivity would likely incorporate 3 new T.O. positions including an executive director and 2 staff researchers
focused on the state mapping of available broadband and connectivity throughout the state, securing public and private
grants available to fund connectivity expansion to underprivileged areas of the state, and to promote future broadband
development by private partners. Proposed law authorizes the office to enter into any agreement or contract with any
person or government agency as necessary or convenient to carry out its functions.
The LFO cannot corroborate the workload necessity detailed by the Division of Administration, particularly within the initial
timeframe establishing the Office of Broadband and Connectivity. The availability of grant funding from public and private
resources is not material at the current time, although conversation at the federal level indicates that substantive grants to
provide broadband access to rural areas nationally may be on the horizon. Therefore, one grant reviewer/researcher may be
sufficient during establishment of the office. Additionally, although the bill directs the office to map available broadband and
connectivity statewide, the Federal Communications Commission (FCC) provides extensive and detailed maps of existing
broadband availability nationally that the office can utilize to fulfill this requirement and should mitigate the need to recreate
such mapping.
SEE EXPENDITURE EXPLANATION CONTINUED ON PAGE ONE
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure.
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} x 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
13.5.2 >= $500,000 Annual Tax or Fee Christopher A. Keaton
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Legislative Fiscal Officer
 LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 61 SLS 202ES 41
Bill Text Version: REENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.: REVISED
Date: October 19, 2020 2:26 PM Author: MIZELL
Dept./Agy.: Executive Office
Subject: Creates the state office of broadband and connectivity Analyst: Alan M. Boxberger
CONTINUED EXPLANATION from page one: Page 2 of 2
EXPENDITURE EXPLANATION CONTINUED FROM PAGE ONE
Annualized cost estimates provided by the Division of Administration include:
-$459,440 Personal Services (salaries and related benefits, salaries of $125,000 for executive director and $60,000 each for
3 researchers)
-$21,500 Operating Services (travel at $15,000, communications at $2,500, software at $2,500, and support and $1,500)
-$2,188 Equipment (for annual incidental equipment usage)
NOTE: The Division of Administration reports that it will absorb the personal services costs utilizing existing budgetary and
personnel resources. The expenditure exposure will be related to the increase in operating services and equipment, at a
total annual cost of approximately $23,700 beginning in FY 22. In FY 21, the only costs not absorbed would be $3,500 for
operating expenses and $729 for equipment ($4,229 total). To the degree that staffing levels are less than that estimated
by the Division of Administration, the workload costs would decrease proportionally.
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} x 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
13.5.2 >= $500,000 Annual Tax or Fee Christopher A. Keaton
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Legislative Fiscal Officer