NOTE: As provided in LFC policy, this report is intended 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 in any other situation.



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



SPONSOR   Wallace           DATE TYPED 01/27/99 HB  72        



SHORT TITLE Increase Small Cities Assistance        SB              



                                                   ANALYST  Eaton       

REVENUE



   Estimated Revenue    Subsequent Recurring Fund

FY99 FY2000 Years Impact or Non-Rec Affected



$    .  $  1,630.1 $    .   Recurring         Muni GF    



$       .  $ (1,630.1) $       .   Recurring         General Fund



(Parenthesis ( ) Indicate Revenue Decreases)



Duplicates/Conflicts with/Companion to/Relates to HB10; SB102

SOURCES OF INFORMATION



Taxation and Revenue Department (TRD)



SUMMARY



Synopsis of Bill:



The legislation would amend the Small Cities Assistance Act by increasing the maximum limit a city of 10000 or less persons may receive in assistance from $30,000 to $60,000.



Presently, all cities with populations less than 10000 persons are eligible to receive the same minimum and maximum of $15,000 and $30,000 respectively.



FISCAL IMPLICATIONS



The Small Cities Assistance distribution from the Assistance Fund is financed from 10 percent of the Compensating Tax receipts. Amounts not distributed revert to the general fund. TRD estimates a recurring negative impact on the general fund in the amount of approximately $1.63 million (Reversions) and a recurring positive impact on the Municipal General Funds for the same amount.



Attached is a table provided by TRD, detailing the affected municipalities and the estimated effect of this proposed legislation.



CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP



HB10, SB102



JBE/gm

Attachment