Impact assistance for development projects. |
03LSO-0190.L1 |
FISCAL NOTE (HB0282)
|
|
|
|
|
|
|
|
The fiscal impact is indeterminable.
Source of potential revenue decrease: Investment income
Assumptions:
The amount of revenue decrease is indeterminable
as it is not known how much will be loaned out each year. However, there is a potential investment
return of 5.25% on any amount that is loaned out. Assuming the entire
$100,000,000 is loaned out at 0% interest, there would be an investment income
loss of $5,250,000 each year.
This bill increases the limitation on
legislatively designated investments (LDI’s) to $600,000,000. This statute
currently indicates that total investment of permanent funds in LDI’s shall not
exceed $500,000,000. The total statutory allotment of all LDI’s listed in
current statutes totals $647,950,000.
The total outstanding investment of LDI’s currently in use at the end of
December 2002 totaled just under $200 million.
The State Treasurer has recommended removing from statute two of the
LDI’s (one time funding items - Natrona Co. Water Treatment for $23 million and
Green River/Rock Springs Water Treatment Plant for $24 million) that are
totally repaid and also a $10 million mortgage loan program that has not been
used in some time which would bring the current total statutory allotment down
to $590,950,000. This would be prior to
this additional $100,000,000 LDI.
Although the Treasurer’s Office would not require additional personnel or expect large administrative expenditures as a result of this legislation, the bill does require additional administrative and accounting duties for existing staff.
The addition of new section 35-12-201 to review loan applications would create an additional fiscal cost (Administrative Impact) on the Industrial Siting Council (ISC), since the ISC would not be reimbursed for this work as they normally are under the existing act. However, this fiscal impact is hard to determine (estimate maybe two to three applications per year), and current ISC resources would be adequate to cover this workload.
Prepared by: Dean Temte, LSO Phone: 777-7881
(information provided by Sharon Garland, Treasurer’s Office; phone 777-7475: James S. Uzzell, ISC; phone 777-7198)