Severance tax and FMR distribution.

04LSO-0257.C1

                                                         

UPDATED FISCAL NOTE BASED ON JANUARY 2004 CREG (HB0035)

 

	FY 2005	FY 2006	FY 2007
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue Increase (Decrease):
CITIES AND TOWNS DIST	27,550,000	27,550,000	27,550,000
COUNTY DIST	7,750,000	7,750,000	7,750,000
GENERAL FUND	(15,500,000)	(15,500,000)	(15,500,000)
SCHOOL FOUNDATION FUND	(19,800,000)	(19,800,000)	(19,800,000)

 

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 School Foundation Program 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 under the $200 million cap:

• School Foundation Program distribution percentage decreases from 44.8% to 34.8%.
• Cities and Towns distribution percentage increases from 9.375% to 19.375%.
• This diverts $19.8 million from the School Foundation Program to Cities and Towns in FY05-FY07.

 

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

• General Fund distribution percentage decreases from 62.26% to 52.26%.
• Total County distribution percentage increases from 3.88% to 8.88%.
• Cities and towns distribution percentage increases from 9.25% to 14.25%.
• This diverts $15.5 million from the General Fund and redistributes $7.75 million to Cities and Towns and $7.75 million to Counties in FY05-FY07.

 

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