Did the Missouri AG approve the fiscal note summary that said the Reed Article I initiative would have no state or local cost or savings?

Plain-English summary

When an initiative petition is circulated in Missouri, voters see two short pieces of explanatory text alongside the proposed measure: the ballot summary statement (prepared by the Secretary of State and reviewed separately by the AG), and a "fiscal note summary" (prepared by the State Auditor under § 116.175). The fiscal note summary distills the Auditor's longer fiscal note into a few sentences that estimate the measure's impact on state and local government finances.

In this opinion, the State Auditor (Nicole Galloway) asked the AG to review the legal content and form of her proposed fiscal note summary for the Steven Reed initiative petition designated 20-055, which proposed amending Article I of the Missouri Constitution. The Auditor's summary read in full: "State and local governmental entities estimate no costs or savings from this proposal." Attorney General Eric Schmitt approved that summary under § 116.175.4, RSMo, with the standard disclaimer that statutory review is not an endorsement of the petition itself.

Currency note

This opinion was issued in 2019. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

What is a fiscal note summary?

A short statement, prepared by the State Auditor under § 116.175, RSMo, that estimates the impact of an initiative on state and local government revenues and expenditures. The Auditor solicits input from state agencies and local governments to build the underlying fiscal note, then condenses that note into a few sentences that voters see on circulator petition sheets and the ballot.

What does "no costs or savings" mean?

It means that none of the state and local governmental entities the Auditor contacted projected any direct fiscal impact from the proposal. That can happen for petitions that change constitutional declarations, civil rights provisions, or procedural rules without imposing new spending requirements or unlocking new revenue streams. (Petition 20-055 amended Article I, which is the Missouri Bill of Rights.)

Why does the AG review the fiscal note summary?

§ 116.175.4 directs the AG to review the legal content and form. The review confirms the summary is in proper legal form for use on a petition and ballot, not that the underlying fiscal estimate is correct.

Does AG approval mean voters can rely on "no costs or savings" as a final figure?

Not necessarily. Fiscal estimates are projections. If the actual implementation of a measure turns out to require new spending or generate new revenue, the original "no costs or savings" estimate may turn out to have understated the impact. The AG's role does not extend to second-guessing the Auditor's numbers.

Background and statutory framework

§ 116.175, RSMo, governs the State Auditor's preparation of fiscal notes and fiscal note summaries for initiatives and referenda. Subsection 4 directs the AG to review the legal content and form of the Auditor's proposed summary. The fiscal note summary travels with the petition through signature collection and onto the ballot if the petition qualifies.

Citations

• § 116.175, RSMo (fiscal note and fiscal note summary process)
• § 116.175.4, RSMo (AG review of fiscal note summary)
• Initiative Petition 20-055 (Reed, proposed amendment to Article I of the Missouri Constitution)

Source

• Landing page: https://ago.mo.gov/other-resources/ag-opinions/
• Original PDF: https://ago.mo.gov/wp-content/uploads/attachments/81-2019.pdf?sfvrsn=2

Original opinion text

ATTORNEY GENERAL OF MISSOURI
ERIC SCHMITT

May 3, 2019

OPINION LETTER NO. 81-2019

The Honorable Nicole Galloway
Missouri State Auditor
State Capitol, Room 121
Jefferson City, MO 65101

Dear Auditor Galloway:

This office received your letter of April 24, 2019, submitting a fiscal note and fiscal note summary prepared under § 116.175, RSMo, for an initiative petition submitted by Steven Reed (20-055). The fiscal note summary that you submitted is as follows:

State and local governmental entities estimate no costs or savings from this proposal.

Under § 116.175.4, RSMo, we approve the legal content and form of the fiscal note summary. Because our review of the fiscal note summary is mandated by statute, no action that we take with respect to such review should be construed as an endorsement of the initiative petition or as the expression of any view regarding the objectives of its proponents.

Very truly yours,

ERIC S. SCHMITT
Attorney General

Broadway Building
P.O. Box 899
Jefferson City, MO 65102
Phone: (573) 751-3321
Fax: (573) 751-0774
www.ago.mo.gov

OP-2019-0087