Revenue streams to local governments.

04LSO-0116.L1

                                                         

UPDATED FISCAL NOTE BASED ON JANUARY 2004 CREG (HB0021)

	FY 2005	FY 2006	FY 2007
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue Increase (Decrease):
CITIES AND TOWNS DIST	38,900,000	38,200,000	40,000,000
COUNTY DIST	39,700,000	38,800,000	40,800,000
GENERAL FUND	(26,400,000)	(26,000,000)	(26,800,000)
BUDGET RESERVE ACCOUNT	(52,200,000)	(51,000,000)	(54,000,000)

Source of revenue increase (decrease):

This bill does not increase or decrease revenues. It only redistributes severance tax and federal mineral royalty (FMR) revenues from the General Fund and Budget Reserve Account to cities, towns, and counties. The net impact to all accounts is zero.

 

Assumptions:

The above estimates are based on January 2004 CREG projections

 

This bill changes FMR distributions over the $200 million cap:

• Budget Reserve Account distribution changes from two-thirds (2/3) to five-ninths (5/9).
• Creates a one-ninth (1/9) over-the-cap distribution to cities and towns.
• This diverts roughly $24.3 million to cities and towns in FY05.

 

This bill changes the severance distributions over $155 million cap:

• General Fund distribution changes from one-third (1/3) to one-quarter (1/4).
• Budget Reserve Account distribution changes from two-thirds (2/3) to one-half (1/2).
• Creates a one-quarter (1/4) over the cap distribution to cities, towns and counties. This one-quarter (1/4) is split 20 percent to cities and towns and 80 percent to counties.
• This diverts roughly $8.4 million to cities and towns and $33.5 million to counties in FY05.

 

This bill changes severance distributions under the $155 million cap:

• General Fund distribution decreases from 62.26% to 54.26%.
• Total County distribution increases from 3.88% to 7.88%.
• Cities and towns distribution increases form 9.25% to 14.25%.
• This diverts $6.2 million to cities and towns and $6.2 million to counties.

 

Prepared by:   Dean Temte, LSO    Phone:   777-7881