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:

HTRC

 

DATE TYPED:

3/20/03

 

HB

992/HTRCS

 

SHORT TITLE:

Public Peace,  Health &  Safety

 

SB

 

 

 

ANALYST:

Smith

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

 

 

 

 

(19,442.0)

 

Non-Rec

Severance Tax Permanent Fund

 

*

Negative

Recurring

 

General Fund

(Parenthesis ( ) Indicate Revenue Decreases)

 

SOURCES OF INFORMATION

 

LFC Files

DFA

SUMMARY

 

     Synopsis of Bill

 

House Taxation and Revenue Committee Substitute for House Bill 992 provides for an “interception” of up to $40 million in severance tax revenues that would otherwise be transferred to the severance tax permanent fund (STPF). The bill specifies that the revenue will be used to support a supplemental severance tax “sponge” bond (a form of cash financing) for public school capital outlay.

 

FISCAL IMPLICATIONS

 

·        DFA currently anticipates a $19.4 million transfer to the STPF. This money would be invested in a diversified portfolio of stocks and bonds. Since the STPF distributes 4.7 percent of the 5-year average of its market value to the general fund, this bill would eventually result in a negative general fund impact

 

 

  • DFA’s current plan of finance is attached to this analysis. Anticipated FY03 school capital outlay would increase from $125 million to roughly $144 million.

 

SN/njw: yr