6623 NONREIMBURSABLE LOCAL COSTS
(Revised 5/98)
Local entities may incur costs as the result of the issuance of executive regulations which, while they are not reimbursable because they are not “state mandated costs,” must be identified and estimated by the issuing state agencies. These costs will generally result from regulations which fall into one of three categories:
- Those which implement something other than a state statute, i.e., federal, court or voter-approved mandates. (Section A.2 (a), A.2 (b), or A.2 (c) on STD. 399.)
- Those which either are requested specifically by only the entity or entities affected, can be financed from other appropriate revenue sources, or provide savings which offset any costs. (Sections A.2 (d), A-2 (e), or A.2 (f) on STD. 399.)
- Those which are permissive, optional, or discretionary in nature, e.g., “fire engines may be painted yellow” or are not unique to local government.
The basic estimating methodology for the preceding subsections (1) and (2) is essentially the same as that set forth in SAM Section 6622. However, it is important to clearly indicate that these are not constitutionally reimbursable mandates and to develop estimates of offsetting savings and costs. For the permissive regulations described in preceding subsection (3) no estimate of costs is required since only “other nondiscretionary costs” are specified in law. However, there may be occasions where it would be desirable to have an estimate of the costs that would be incurred if all eligible local entities took advantage of the authority conferred by the regulation.
