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

SPONSOR King

ORIGINAL DATE

LAST UPDATED

2-7-06

HB 733

SHORT TITLE Torrance County Loan Repayment

SB

ANALYST Hadwiger

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$131.0 Non-Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

SUMMARY

Synopsis of Bill

House Bill 733 appropriates $131 thousand from the general fund to the Local Government Divi-

sion (LGD) of the Department of Finance and Administration (DFA) in FY07 for Torrance

County to repay a State Board of Finance (BOF) loan.

FISCAL IMPLICATIONS

The appropriation of $131 thousand contained in this bill is a non-recurring expense to the gen-

eral fund. Any unexpended or unencumbered balance remaining at the end of FY07 would revert

to the general fund. In this instance, the appropriation would be returned to the general fund to

retire the BOF loan.

SIGNIFICANT ISSUES

DFA noted that Torrance County appeared before the Board on October 12th, 2004 to make an

emergency fund request. The BOF approved the loan with an understanding that the county

would seek repayment funds at the 2005 legislative session. The repayment date was April 1,

2005. On May 10th, 2005, Torrance County appeared before the Board of Finance to request the

loan be converted to a grant. The Board denied the request and granted an extension of the loan

for one year to be repaid on May 10, 2006.

DH/mt