Fiscal Note - 1170 HB Manufacturing (Multiple Agency Fiscal Note Summary)
Summary
Multiple Agency Fiscal Note Summary for bill 1170 HB, titled Manufacturing, followed by individual state agency fiscal notes. The Department of Commerce note describes Section 3 as giving the department responsibility for the state's goal of consistently having the highest share of workforce involved in manufacturing and research and development occupations in the United States, and directs the department to report by December 31, 2021, on the feasibility of a state manufacturing and research and development office. Its Part I estimate is 11.4 FTE staff years and $2,242,242 in General Fund-State for FY 2022. The Superintendent of Public Instruction note estimates 0.1 FTE staff years and $13,000 in General Fund-State for FY 2022, and lists the capital budget impact as non-zero but indeterminate.
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“Fiscal Note - 1170 HB Manufacturing (Multiple Agency Fiscal Note Summary).”
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Multiple Agency Fiscal Note Summary
Bill Number: 1170 HB Title: Manufacturing
Estimated Cash Receipts
NONE
Estimated Operating Expenditures
Agency Name 2021-23 2023-25 2025-27
FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total
Department of 11.4 4,427,024 4,427,024 4,427,024 11.4 4,369,564 4,369,564 4,369,564 11.4 4,382,724 4,382,724 4,382,724
Commerce
Superintendent of .1 26,000 26,000 26,000 .1 26,000 26,000 26,000 .1 26,000 26,000 26,000
Public Instruction
Community and .1 24,000 24,000 24,000 .1 24,000 24,000 24,000 .1 24,000 24,000 24,000
Technical College
System
Total $ 11.6 4,477,024 4,477,024 4,477,024 11.6 4,419,564 4,419,564 4,419,564 11.6 4,432,724 4,432,724 4,432,724
Estimated Capital Budget Expenditures
Agency Name 2021-23 2023-25 2025-27
FTEs Bonds Total FTEs Bonds Total FTEs Bonds Total
Department of Commerce .0 0 0 .0 0 0 .0 0 0
Superintendent of Public Non-zero but indeterminate cost and/or savings. Please see discussion.
Instruction
Community and .0 0 0 .0 0 0 .0 0 0
Technical College System
Total $ 0.0 0 0 0.0 0 0 0.0 0 0
Estimated Capital Budget Breakout
Superintendent of Public Non-zero but indeterminate cost and/or savings. Please see discussion.
Instruction
Prepared by: Val Terre, OFM Phone: Date Published:
(360) 280-3973 Final 2/ 1/2021
FNPID: 61540
FNS029 Multi Agency rollup
Individual State Agency Fiscal Note
Bill Number: 1170 HB Title: Manufacturing Agency: 103-Department of
Commerce
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
NONE
Estimated Operating Expenditures from:
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 11.4 11.4 11.4 11.4 11.4
Account
General Fund-State 001-1 2,242,242 2,184,782 4,427,024 4,369,564 4,382,724
Total $ 2,242,242 2,184,782 4,427,024 4,369,564 4,382,724
Estimated Capital Budget Impact:
NONE
The cash receipts and expenditure estimates on this page represent the most likely fiscal impact. Factors impacting the precision of these estimates,
and alternate ranges (if appropriate), are explained in Part II.
Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete entire fiscal note
X
form Parts I-V.
If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete this page only (Part I).
Capital budget impact, complete Part IV.
Requires new rule making, complete Part V.
Legislative Contact: Kyle Raymond Phone: 360-786-7190 Date: 01/14/2021
Agency Preparation: Karen McArthur Phone: 360-725-4027 Date: 01/21/2021
Agency Approval: Joyce Miller Phone: 360-725-2710 Date: 01/21/2021
OFM Review: Gwen Stamey Phone: (360) 902-9810 Date: 01/22/2021
Form FN (Rev 1/00) 162,173.00 Request # 023-700-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1170 HB
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Briefly describe by section number, the significant provisions of the bill, and any related workload or policy assumptions, that have revenue or
expenditure impact on the responding agency.
Section 3 is a new section, (1) provides to the Department of Commerce (department) the responsibility for
implementing the state’s goal to consistently have the highest share of workforce involved in manufacturing and
research and development occupations in the United States, also to build capacity statewide to allow all persons
to learn the skills to enter the manufacturing or research and development field with abundant local employment
opportunities in those fields;
(2) directs the department to biennially convene stakeholders in manufacturing and research and development
and compile a report to the legislature on the performance to date in obtaining the afore mentioned goal and to
identify public policy obstacles in obtaining the goal with recommendations;
(3) the department is directed to establish permanent regional offices staffed by lead coordinators and lists the
responsibilities of those coordinators;
(4) directs the department to coordinate with the superintendent of public instruction and the state board of
community and technical colleges to evaluate any inadequacy or gaps in delivering training or retraining for a
manufacturing workforce and deliver a report with recommendations to the legislature;
(5) directs the department to report by December 31, 2021, on the feasibility of forming both a state
manufacturing and research and development office to support the goal of Section 3(1);
(6) directs the department to employ a general manufacturing and research and development sector lead; and
(7) allows the department to expend resources to feature and promote innovation, product or industry
sub-classification.
II. B - Cash receipts Impact
Briefly describe and quantify the cash receipts impact of the legislation on the responding agency, identifying the cash receipts provisions by section
number and when appropriate the detail of the revenue sources. Briefly describe the factual basis of the assumptions and the method by which the
cash receipts impact is derived. Explain how workload assumptions translate into estimates. Distinguish between one time and ongoing functions.
II. C - Expenditures
Briefly describe the agency expenditures necessary to implement this legislation (or savings resulting from this legislation), identifying by section
number the provisions of the legislation that result in the expenditures (or savings). Briefly describe the factual basis of the assumptions and the
method by which the expenditure impact is derived. Explain how workload assumptions translate into cost estimates. Distinguish between one time
and ongoing functions.
Section 3
To accomplish this work the department estimates the following will be needed:
6.0 FTE Program Specialist 5 (12,528 hours FY22-27) created in six regions of the state and to act as a lead
coordinator to establish regional research and manufacturing industrial councils, identify local skill centers and
foster expansion or creation of skill centers, and promote and foster skilled training learning programs.
1.0 FTE WMS Managing Director (2,088 hours FY22-27) to provide leadership, oversight, supervision, and
decision making over all elements of the program. Staff provide expert policy advice or consultation on a range
of issues specific to the program and to areas that have agency wide implications.
1.0 FTE Administrative Assistant 3 (2,088 hours FY22-27) to provide administrative support, and procedural
guidance to regional offices and the program.
2.0 FTE EMS 3 Sector Leads (4,176 hours FY22-27) to provide general manufacturing, research and
development and to work closely with the lead regional coordinators, the governor, industry and government
Manufacturing 103-Department of Commerce
Form FN (Rev 1/00) 162,173.00 Request # 023-700-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1170 HB
leaders to forge and promote public-private partnerships, enhance the workforce for the 21st century in general
manufacturing and research and development industries, and advance broad stroke strategies that support small
business growth and expansion statewide.
Salaries and Benefits
FY22-FY27: $1,200,887 per fiscal year
Professional Service Contracts
FY22-FY27: $250,000 per fiscal year
To feature and promote a particular innovation, product, or industry sub-classification and report research and
development.
Goods and Services, Travel and Equipment
FY22: $383,054
FY23-FY25: $325,594 per fiscal year
FY26: $338,754
FY27: 325,594
This includes rent; regional sponsorship, memberships and conferences; annual customer relationship
management licenses, attorney general costs, travel, and equipment.
Intra-agency Reimbursements:
FY22-FY27: $408,301 per fiscal year
Note: Standard goods and services costs include supplies and materials, employee development and training,
Attorney General costs, and central services charges.
Intra-agency Reimbursement-Agency administration costs (e.g., payroll, HR, IT,) are funded under a federally
approved cost allocation plan.
=================
Total Costs:
FY22: $2,242,242
FY23-FY25: $2,184,782 per fiscal year
FY26: $2,197,942
FY27: $2,184,782
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
Account Account Title Type FY 2022 FY 2023 2021-23 2023-25 2025-27
001-1 General Fund State 2,242,242 2,184,782 4,427,024 4,369,564 4,382,724
Total $ 2,242,242 2,184,782 4,427,024 4,369,564 4,382,724
Manufacturing 103-Department of Commerce
Form FN (Rev 1/00) 162,173.00 Request # 023-700-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1170 HB
III. B - Expenditures by Object Or Purpose
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 11.4 11.4 11.4 11.4 11.4
A-Salaries and Wages 892,008 892,008 1,784,016 1,784,016 1,784,016
B-Employee Benefits 308,879 308,879 617,758 617,758 617,758
C-Professional Service Contracts 250,000 250,000 500,000 500,000 500,000
E-Goods and Other Services 253,594 253,594 507,188 507,188 507,188
G-Travel 72,000 72,000 144,000 144,000 144,000
J-Capital Outlays 57,460 57,460 13,160
M-Inter Agency/Fund Transfers
N-Grants, Benefits & Client Services
P-Debt Service
S-Interagency Reimbursements
T-Intra-Agency Reimbursements 408,301 408,301 816,602 816,602 816,602
9-
Total $ 2,242,242 2,184,782 4,427,024 4,369,564 4,382,724
III. C - Operating FTE Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in
Part I and Part IIIA
Job Classification Salary FY 2022 FY 2023 2021-23 2023-25 2025-27
Administrative Assistant 3 48,996 1.0 1.0 1.0 1.0 1.0
Administrative Services - Indirect 69,552 1.4 1.4 1.4 1.4 1.4
EMS Band 3 125,100 2.0 2.0 2.0 2.0 2.0
Program Specialist 5 80,292 6.0 6.0 6.0 6.0 6.0
WMS Band 2 111,060 1.0 1.0 1.0 1.0 1.0
Total FTEs 11.4 11.4 11.4 11.4 11.4
III. D - Expenditures By Program (optional)
NONE
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE
IV. B - Expenditures by Object Or Purpose
NONE
IV. C - Capital Budget Breakout
Identify acquisition and construction costs not reflected elsewhere on the fiscal note and describe potential financing methods
NONE
IV. D - Capital FTE Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in
Part IVB
NONE
Part V: New Rule Making Required
Manufacturing 103-Department of Commerce
Form FN (Rev 1/00) 162,173.00 Request # 023-700-1
FNS063 Individual State Agency Fiscal Note 4 Bill # 1170 HB
Individual State Agency Fiscal Note
Bill Number: 1170 HB Title: Manufacturing Agency: 350-Superintendent of
Public Instruction
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
NONE
Estimated Operating Expenditures from:
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 0.1 0.1 0.1 0.1 0.1
Account
General Fund-State 001-1 13,000 13,000 26,000 26,000 26,000
Total $ 13,000 13,000 26,000 26,000 26,000
Estimated Capital Budget Impact:
Non-zero but indeterminate cost and/or savings. Please see discussion.
The cash receipts and expenditure estimates on this page represent the most likely fiscal impact. Factors impacting the precision of these estimates,
and alternate ranges (if appropriate), are explained in Part II.
Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete entire fiscal note
form Parts I-V.
X If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete this page only (Part I).
X Capital budget impact, complete Part IV.
Requires new rule making, complete Part V.
Legislative Contact: Kyle Raymond Phone: 360-786-7190 Date: 01/14/2021
Agency Preparation: Amy Kollar Phone: 360 725-6420 Date: 02/01/2021
Agency Approval: Mike Woods Phone: 360 725-6283 Date: 02/01/2021
OFM Review: Val Terre Phone: (360) 280-3973 Date: 02/01/2021
Form FN (Rev 1/00) 164,193.00 Request # HB 1170-2
FNS063 Individual State Agency Fiscal Note 1 Bill # 1170 HB
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Briefly describe by section number, the significant provisions of the bill, and any related workload or policy assumptions, that have revenue or
expenditure impact on the responding agency.
Summary:
The State of Washington intends to increase the number of manufacturing and research and development sector
jobs by 2030. The State plans to accomplish this by expanding and promoting skilled trade learning programs.
II. B - Cash receipts Impact
Briefly describe and quantify the cash receipts impact of the legislation on the responding agency, identifying the cash receipts provisions by section
number and when appropriate the detail of the revenue sources. Briefly describe the factual basis of the assumptions and the method by which the
cash receipts impact is derived. Explain how workload assumptions translate into estimates. Distinguish between one time and ongoing functions.
No cash receipts impact.
II. C - Expenditures
Briefly describe the agency expenditures necessary to implement this legislation (or savings resulting from this legislation), identifying by section
number the provisions of the legislation that result in the expenditures (or savings). Briefly describe the factual basis of the assumptions and the
method by which the expenditure impact is derived. Explain how workload assumptions translate into cost estimates. Distinguish between one time
and ongoing functions.
Section 3 requires the Office of Superintendent of Public Instruction (OSPI) to provide expertise to stakeholders
and assist in the identification of gaps in delivering hands-on, skills-based learning remotely. The projected fiscal
impact is estimated to be 0.10 FTE of a Program Supervisor’s time to collaborate and provide recommendations.
OSPI estimates the cost to be $13,000 each year beginning in FY22.
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
Account Account Title Type FY 2022 FY 2023 2021-23 2023-25 2025-27
001-1 General Fund State 13,000 13,000 26,000 26,000 26,000
Total $ 13,000 13,000 26,000 26,000 26,000
III. B - Expenditures by Object Or Purpose
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 0.1 0.1 0.1 0.1 0.1
A-Salaries and Wages 8,400 8,400 16,800 16,800 16,800
B-Employee Benefits 4,600 4,600 9,200 9,200 9,200
C-Professional Service Contracts
E-Goods and Other Services
G-Travel
J-Capital Outlays
M-Inter Agency/Fund Transfers
N-Grants, Benefits & Client Services
P-Debt Service
S-Interagency Reimbursements
T-Intra-Agency Reimbursements
9-
Total $ 13,000 13,000 26,000 26,000 26,000
Manufacturing 350-Superintendent of Public Instruction
Form FN (Rev 1/00) 164,193.00 Request # HB 1170-2
FNS063 Individual State Agency Fiscal Note 2 Bill # 1170 HB
III. C - Operating FTE Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in
Part I and Part IIIA
Job Classification Salary FY 2022 FY 2023 2021-23 2023-25 2025-27
Program Supervisor 83,517 0.1 0.1 0.1 0.1 0.1
Total FTEs 0.1 0.1 0.1 0.1 0.1
III. D - Expenditures By Program (optional)
NONE
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
Non-zero but indeterminate cost and/or savings. Please see discussion.
IV. B - Expenditures by Object Or Purpose
Non-zero but indeterminate cost and/or savings. Please see discussion.
IV. C - Capital Budget Breakout
Identify acquisition and construction costs not reflected elsewhere on the fiscal note and describe potential financing methods
Non-zero but indeterminate cost and/or savings. Please see discussion.
IV. D - Capital FTE Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in
Part IVB
NONE
The fiscal impact to OSPI’s capital budget is indeterminate because it’s unknown whether the legislature will appropriate
funding for fostering the appropriate expansion of existing skills centers or creation of additional capacity as determined
by the Department of Commerce.
Historically, the legislature has provided full funding for the creation, expansion, and modernization of skills center
facilities. Each school district administrative host of a skills center has provided the land where the skills center is located.
For discussion purposes, the cost per square feet of creating or expanding skills center space will vary depending on the
training/education program offered to students. The square feet needs of each program offered varies. For example,
composite labs and construction trades programs will require more space than computer programming and robotics
programs. In addition, the cost of the equipment to teach their different programs will vary.
Also, the cost to offer similar programs will vary between existing skills centers depending on the age and condition of
each facility. The cost of a program to be added or expanded at an older facility will cost more due to the age and
condition of its building systems and the associated costs to bring current systems up to current building, health and safety
codes.
Part V: New Rule Making Required
Manufacturing 350-Superintendent of Public Instruction
Form FN (Rev 1/00) 164,193.00 Request # HB 1170-2
FNS063 Individual State Agency Fiscal Note 3 Bill # 1170 HB
Individual State Agency Fiscal Note
Bill Number: 1170 HB Title: Manufacturing Agency: 699-Community and
Technical College System
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
NONE
Estimated Operating Expenditures from:
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 0.1 0.1 0.1 0.1 0.1
Account
General Fund-State 001-1 12,000 12,000 24,000 24,000 24,000
Total $ 12,000 12,000 24,000 24,000 24,000
Estimated Capital Budget Impact:
NONE
The cash receipts and expenditure estimates on this page represent the most likely fiscal impact. Factors impacting the precision of these estimates,
and alternate ranges (if appropriate), are explained in Part II.
Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete entire fiscal note
form Parts I-V.
X If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete this page only (Part I).
Capital budget impact, complete Part IV.
Requires new rule making, complete Part V.
Legislative Contact: Kyle Raymond Phone: 360-786-7190 Date: 01/14/2021
Agency Preparation: Brian Myhre Phone: 360-704-4413 Date: 01/25/2021
Agency Approval: Cherie Berthon Phone: 360-704-1023 Date: 01/25/2021
OFM Review: Breann Boggs Phone: (360) 485-5716 Date: 01/26/2021
Form FN (Rev 1/00) 162,491.00 Request # 9-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1170 HB
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Briefly describe by section number, the significant provisions of the bill, and any related workload or policy assumptions, that have revenue or
expenditure impact on the responding agency.
By the year 2030, this bill would set a goal of making Washington State have the greatest per capita share of
workers involved in the manufacturing and research and development sectors. The Department of Commerce
(Commerce) would be responsible for implementing the state’s goal and for submitting a biennial report to the
legislature on performance toward attainment of the goal.
In coordination with the Office of Superintendent of Public Instruction and the State Board for Community and
Technical Colleges (State Board), the Department of Commerce is directed to assess any inadequacy or gaps in
delivering hands-on, skills-based learning remotely to all Washingtonians seeking to enter, or transition within,
the manufacturing workforce. Commerce is required to report to the legislature with recommendations on how
Washington can be a world leader in best practices for delivering remote learning opportunities adapted to the
manufacturing workplace.
II. B - Cash receipts Impact
Briefly describe and quantify the cash receipts impact of the legislation on the responding agency, identifying the cash receipts provisions by section
number and when appropriate the detail of the revenue sources. Briefly describe the factual basis of the assumptions and the method by which the
cash receipts impact is derived. Explain how workload assumptions translate into estimates. Distinguish between one time and ongoing functions.
No cash receipts impact.
II. C - Expenditures
Briefly describe the agency expenditures necessary to implement this legislation (or savings resulting from this legislation), identifying by section
number the provisions of the legislation that result in the expenditures (or savings). Briefly describe the factual basis of the assumptions and the
method by which the expenditure impact is derived. Explain how workload assumptions translate into cost estimates. Distinguish between one time
and ongoing functions.
Requirements in the bill would result in expenditure impacts.
SECTION 3(2)
The Department of Commerce is required to convene stakeholders in manufacturing and research and
development for the purpose of compiling a biennial report to the legislature. State agencies are directed to
provide expertise, information and resources as requested from stakeholders.
It is estimated to take .1 FTE of a State Board Workforce Policy Associate to work with stakeholders and the
Department of Commerce to provide information needed for the report.
.1 FTE X $120,000 Policy Associate (Salary & Benefits) = $12,000 on-going costs starting in FY 2022.
SECTION 3(4)
The State Board for Community and Technical Colleges is directed to coordinate with the Department of
Commerce to assess any inadequacy or gaps in delivering hands-on, skills-based learning remotely to all
Washingtonians seeking to enter, or transition within, the manufacturing workforce.
The work to assess inadequacy or gaps in remote learning can be done within existing resources.
Manufacturing 699-Community and Technical College System
Form FN (Rev 1/00) 162,491.00 Request # 9-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1170 HB
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
Account Account Title Type FY 2022 FY 2023 2021-23 2023-25 2025-27
001-1 General Fund State 12,000 12,000 24,000 24,000 24,000
Total $ 12,000 12,000 24,000 24,000 24,000
III. B - Expenditures by Object Or Purpose
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 0.1 0.1 0.1 0.1 0.1
A-Salaries and Wages 9,000 9,000 18,000 18,000 18,000
B-Employee Benefits 3,000 3,000 6,000 6,000 6,000
C-Professional Service Contracts
E-Goods and Other Services
G-Travel
J-Capital Outlays
M-Inter Agency/Fund Transfers
N-Grants, Benefits & Client Services
P-Debt Service
S-Interagency Reimbursements
T-Intra-Agency Reimbursements
9-
Total $ 12,000 12,000 24,000 24,000 24,000
III. C - Operating FTE Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in
Part I and Part IIIA
Job Classification Salary FY 2022 FY 2023 2021-23 2023-25 2025-27
Policy Associate 89,000 0.1 0.1 0.1 0.1 0.1
Total FTEs 0.1 0.1 0.1 0.1 0.1
III. D - Expenditures By Program (optional)
NONE
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE
IV. B - Expenditures by Object Or Purpose
NONE
IV. C - Capital Budget Breakout
Identify acquisition and construction costs not reflected elsewhere on the fiscal note and describe potential financing methods
NONE
IV. D - Capital FTE Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in
Part IVB
NONE
Manufacturing 699-Community and Technical College System
Form FN (Rev 1/00) 162,491.00 Request # 9-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1170 HB
Part V: New Rule Making Required
Manufacturing 699-Community and Technical College System
Form FN (Rev 1/00) 162,491.00 Request # 9-1
FNS063 Individual State Agency Fiscal Note 4 Bill # 1170 HB
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