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

SPONSOR:	McSorley		DATE TYPED:	01/30/02		HB
SHORT TITLE:		Increase Public School Fund School Fund Distribution				SJR	11
					ANALYST:		Neel

REVENUE

Estimated Revenue		Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
FY02	FY03
	$96,509.0	See Narrative	Recurring	General Fund
	$16,906.0	See Narrative	Recurring	Other Beneficiaries of the Land Grant Permanent Fund
	($113,205.0)	See Narrative	Recurring	Land Grant Permanent Fund

(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates HJR 15

SOURCES OF INFORMATION

State Investment Council (SIC)

SUMMARY

Synopsis of Bill

The resolution proposes to increase the distribution from the Land Grant Permanent Fund (LGPF) by 1.3 percent to 6.0 percent. Currently, the distribution is set at 4.7 percent.

FISCAL IMPLICATIONS

The estimate assumes that it would take Congress the balance of FY03 to enact enabling legislation.

SIC has stated that the distribution from the LGPF could be increased by 0.1 percent without eroding the corpus of the fund. As the accompanying graph demonstrates, this proposal would generate

increasingly smaller distributions over time. By the year 2028, the corpus of the LGPF would be sufficiently eroded as to generate less under a 6% distribution plan than it would under current law.

SN/njw:ar

Attachment

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

McSorley

SOURCES OF INFORMATION

State Investment Council (SIC)