Local government revenue distributions.

04LSO-0363.L1

                                                         

FISCAL NOTE (HB0201)

 

	FY 2005	FY 2006	FY 2007
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue Increase (Decrease):
BUDGET RESERVE ACCOUNT	(36,000,000)	(35,200,000)	(37,200,000)
CITIES AND TOWNS DIST	25,200,000	24,600,000	26,000,000
COUNTY DIST	10,800,000	10,600,000	11,200,000

 

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 Budget Reserve Account to cities, towns, and counties from fiscal year 2005 through fiscal year 2008. The net impact to all accounts is zero.

 

Assumptions:

 

The above estimates are based on January 2004 CREG projections.

 

This bill changes the FMR distributions over the $200 million cap and the severance tax distributions over the $155 million cap. 14% of the amounts that would otherwise be distributed to the Budget Reserve Account will now be distributed cites, towns, and counties.

• 30% of this amount will now be distributed to counties. This diverts roughly $10.8 million to counties in FY 2005.
• 70% of this amount will now be distributed to cities and towns. This diverts roughly $25.2 million to cities and towns in FY 2005.

 

These diversions from the Budget Reserve Account to cities, towns, and counties would take place from fiscal year 2005 through fiscal year 2008.

 

 

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