6622 COST ESTIMATING FORMAT AND METHODOLOGY
(Revised 2/98)
A standard methodology has been developed for use in estimating costs in both executive regulations and in legislation. The main components of that methodology are:
- Statement of the Mandate.
- Background or Introductory Material.
- Working Data.
- Assumptions.
- Calculations.
- Conclusion.
Example of these components follow:
Statement of the Mandate
This is described in SAM Section 6621.
Background material
Included here should be:
- A legal description of the legislation which is the basis for the regulation, e.g., Chapter 1234, Statutes of 1996 (SB 123, Smith).
- Any other pertinent historical data.
Working Data
Working data are any available statistical data and their sources which would identify the affected universe. (For example: Secretary of State data on the number of registered voters and/or polling places, State Department of Education data on school enrollees, or State Controller’s reports for the number of local entities.) Also, any “market place” information or standard costs of items needed to comply with the mandate, e.g., quoted process for forms, lunch boxes, video cameras (either sales, rentals, or contract services). In addition, it is very useful and, in some instances essential, that a representative sampling of the affected entities be contacted and queried as to the impact of the mandate on them. Very often organizations representing the affected entities such as the California State Association of Counties (CSAC) and the League of California Cities can either provide such information directly or identify those local entities most likely to be most affected by and/or able to provide information regarding the mandate’s impact on them. Each county has designated a person, usually in the County Executive’s Office, as a “local mandate coordinator” for purposes of providing information, upon request, on pending legislation and handling Commission on State Mandates claims. Those coordinators should also be able to assist in developing fiscal estimates for executive regulations.
Assumptions
On occasion, data regarding the affected universe and/or the price of the mandated item are not readily obtainable. In these instances, it may be necessary to make some reasonable assumptions about the impact. These assumptions should be clearly stated and kept separate from the “hard” data used in developing the estimate.
Calculations
Any mathematical computations using working data and/or assumptions necessary to arrive at a resultant cost figure should be displayed. Costs for both the balance of the current fiscal year and for the subsequent two fiscal years should be developed. Separate calculations should be provided for local, state, and federal costs, as appropriate, as described in the succeeding sections. Any savings to each level of government should be similarly identified.
Conclusion
Determinations made by the issuing agency regarding the applicability of the Constitution to any resultant costs and/or the need to provide additional funding of any state costs. See SAM Section 6621 for the required information.
