NOTE:  As provided in LFC policy, this report is intended only 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 for other purposes.

 

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

 

 

 

SPONSOR:

Herrera

 

DATE TYPED:

02/17/03

 

HB

448

 

SHORT TITLE:

Grant County Emergency Loan Repayment

 

SB

 

 

 

ANALYST:

Padilla

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

$164.9

 

 

Non-recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Duplicates Senate Bill 469

 

SOURCES OF INFORMATION

 

LFC Files

 

Response Received From

Department of Finance and Administration

 

SUMMARY

 

     Synopsis of Bill

 

House Bill 448 appropriates $164.9 from the general fund to the State Board of Finance for the purpose of repaying an emergency loan that the State Board of Finance made to Grant County in FY02. 

 

     Significant Issues

 

In FY02, the State Board of Finance made an emergency loan of $189.9 to Grant County.  During the previous fiscal year, according to DFA, the county had nearly exhausted its general fund cash balance.  On June 30, 2001, its general fund balance was $18.3.  The emergency loan was made in order to allow the county to meet its immediate financial obligations.  The county took other steps to address its weak financial situation, including refinancing its long-term debt and implementing a 32-hour workweek for many county departments.  It also generated additional revenue by renegotiating contracts and selling surplus property.

 

The county has made one $25.0 repayment; it is scheduled to make another $25.0 payment in the current fiscal year.  DFA reports that the county is scheduled to pay the remaining balance of $139.0 in FY04. 

 

FISCAL IMPLICATIONS

 

The appropriation of $164.9 contained in this bill is a non-recurring expense to the general fund.  Any unexpended or unencumbered balance remaining at the end of fiscal year 04 shall revert to the general fund.

 

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

 

House Bill 448 is a duplicate of Senate Bill 469.

 

POSSIBLE QUESTIONS

 

  1. Is Grant County able to make the $25.0 payment currently scheduled for FY03? 
  2. Has the county’s overall financial situation improved?
  3. What is Grant County’s current general fund balance?

 

LP/njw