Master FIR (1988)

NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature. The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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F I S C A L I M P A C T R E P O R T

SPONSOR:	HAFC		DATE TYPED:	02/17/00		HB	HJR 15/HAFCS
SHORT TITLE:		Public School Construction Projects				SB
					ANALYST:		Eaton

REVENUE

Estimated Revenue		Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
FY00	FY01	Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
		See Attachment	Recurring	General Fund
		See Attachment	Recurring	Severance Tax Perm.

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

State Investment Council (SIC)

Legislative Finance Committee (LFC)

SUMMARY

Synopsis of HAFC Substitute

The HAFC amendment changes the distribution amount from the Severance Tax Permanent Fund (STPF). The amendment changes the distribution amount from 2% to 1.5% in calendar years 2001-2015 to be used for public school capital outlay. In calendar years 2016 forward, the distribution amount shall be 1.0% of the average of the year-end market values of the fund for the immediately preceding five calendar years.

The STPF distribution shall be distributed to the public school capital outlay fund to be used for public school capital outlay projects pursuant to a formula established by law. Each school district will have an opportunity to participate.

The constitutional amendment proposed shall be submitted to the people for their approval or rejection at the next general election or at any special election prior to that date which may be called for that purpose.

FISCAL IMPLICATIONS

See attachment. Analysis assumes 8.485% average annual growth of Severance Tax Permanent Fund through the forecast period (calendar years 2000 through 2023).

JBE/gm

Attachment