Education legislative stabilization reserve account.

06LSO-0382.L1

                                                         

FISCAL NOTE

 

The fiscal impact of creating the proposed Education Legislative Stabilization Reserve Account (ELSRA) is indeterminable. Funds within the ELSRA shall not be expended except upon a two-thirds (2/3) vote of each house of the legislature voting separately.

 

The ELSRA is created in anticipation of the passage of 2006 House Joint Resolution 1. This resolution authorizes the creation of state legislative stabilization reserve accounts, restricts appropriations from such reserve accounts, and establishes them as permanent funds of the state.

 

This bill creates a diversion of federal mineral royalties (FMRs) normally distributed to the School Foundation Program Account over the $200 million cap. This proposed diversion to the ELSRA would only take place after the existing diversion of these FMRs to the higher education endowment account and the student scholarship endowment account have reached a combined total of $505.0 million (roughly $30.5 million has been distributed to these endowments thus far, as of the end of FY06). Like the current diversion to the endowment accounts, this proposed diversion to the ELSRA would also be reduced as necessary to ensure an unencumbered balance of $100 million in the School Foundation Program Account on June 30 of each fiscal year. Since the amount of expenditures from the School Foundation Program Account for the 2007-08 and 2009-10 bieniums is currently unknown, the amount of this proposed diversion to the ELSRA cannot be determined.

 

 

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