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.

The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.

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(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

State Department of Education

LFC Files

SUMMARY

Synopsis of Bill

SB9 would redirect the gaming tax revenue that is applied to gaming machines at the race tracks and nonprofit organizations from the general fund to the public school capital outlay fund for the school capital projects. Money from the gaming tax would be isolated in a sub account and would not be subject to the school district debt level requirements.

FISCAL IMPLICATIONS

Gaming tax revenues are expected to bring in $26 million in FY 2000. This estimate is based upon assumed gaming activity levels but is highly uncertain as this kind of gaming activity is new to the state and there is no historical basis upon which to base the estimate.

Redirecting the money from the general fund to the public school capital outlay fund implies a loss of $26 million for the general fund and a gain of $26 million for public school capital outlay.

BT/njw