Health care trust subaccount.

07LSO-0391.L2

                                                         

FISCAL NOTE

 

This bill contains an appropriation of $73,000,000 from the GENERAL FUND to the Permanent Mineral Trust Fund (PMTF) Healthcare Subaccount.

 

This bill contains an appropriation of $42,265,000 from the WYOMNG TOBACCO SETTLEMENT TRUST FUND to the PMTF Healthcare Subaccount. This appropriation is effective immediately.

 

 

FY 2008

FY 2009

FY 2010

NON-ADMINISTRATIVE IMPACT

 

 

 

Anticipated Revenue Increase (Decrease):

 

 

 

HEALTHCARE INCOME ACCOUNT

3,769,166

3,849,851

3,872,904

WYO TOBACCO SETTLE INCOME

(2,142,836)

(2,134,383)

(2,134,383)

 

Source of revenue increase (decrease):

 

The revenue increase to the Healthcare Income Account is a result of investment income from the $42,265,000 appropriation from the Tobacco Settlement Trust Fund and the investment income from the $73,000,000 appropriation from the General Fund.

 

The revenue decrease to the Tobacco Settlement Income Account is a result of decrease of investment income resulting from the $42,265,000 appropriation from the Tobacco Settlement Trust Fund to the PMTF Healthcare Subaccount.

 

Assumptions: 

 

Assumed funds in the PMTF Healthcare Subaccount are invested in the PMTF, with an anticipated yield of 3.27% for FY08, 3.34% for FY09 and 3.36% for FY10. Assumed funds of the Tobacco Settlement Trust Fund are invested in the State Agency Pool, with an anticipated yield of 5.07% for FY08 and 5.05 % for FY09 and FY10.

 

Yield is defined as the actual cash or realized return on investment. Total returns for the permanent funds are expected to be just under 7% over the long-term (10 plus years), while total returns for the non-permanent funds are expected to be just under 5%. Total return is defined as growth in the value of a fund including both yield and unrealized gains.

 

Revenues deposited into the Healthcare Income Account shall only be expended upon appropriation by the legislature for funding the child health insurance program (including parent participation thereof) and for purposes related to the improvement of the health of Wyoming citizens. It is assumed that interest will not be available for expenditure until after June 30th of each year.

 

 

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

(Information provided by Sharon Garland, Treasurer’s Office; 777-7475