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| SPONSOR: | Watchman | DATE TYPED: | 02/04/00 | HB | HJR 11 | ||
| SHORT TITLE: | Emergency School Capital Outlay Fund | SB | |||||
| ANALYST: | Eaton | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY00 | FY01 | |||
| See Attachment | Recurring* | Severance Tax Perm. | ||
(Parenthesis ( ) Indicate Revenue Decreases)
* Impact ends after fiscal year 2016
SOURCES OF INFORMATION
State Investment Council (SIC)
SUMMARY
Synopsis of Bill
This bill proposes to amend the state Constitution to segregate $1 billion dollars from the Severance Tax Permanent Fund (STPF) to a sub-account. The earnings growth in the sub-account during the preceding calendar year shall be distributed annually to an "emergency capital outlay fund" to be used for public school capital outlay projects decided by the legislature. Prioritization of projects and procedures in doing so shall be provided for in state law. On July 1, 2016, the assets in the sub-account shall be transferred back to the Severance Tax Permanent Fund and no other appropriations shall be made from the emergency fund using STPF funds.
Significant Issues
The annual distributions will be subject to annual market returns, fluctuations and corrections. A year with a substantial market correction could drop the value of the fund below $1 billion, yielding zero distributions in the following and possibly subsequent fiscal years.
FISCAL IMPLICATIONS
See Attachment
JE/gm
Attachment