Public library endowment challenge program.

08LSO-0128.L2

FISCAL NOTE

This bill contains an appropriation of $25,300,000 from the GENERAL FUND to the proposed Wyoming Public Library Endowment Challenge Fund.

The proposed fund shall consist of 23 separate accounts, one account for each Wyoming public library established pursuant to W.S. 18-7-101. The above appropriation shall be equally deposited into each of the 23 separate accounts.

The State Treasurer will match endowment gifts actually received by each public library foundation from the funds available in the respective public library account of the Endowment Fund. This match shall be paid by the State Treasurer at the time any accumulated amounts received total $10,000 or more.  Match amounts will be calculated in accordance with W.S. 18-7-202(a)(iv), found in section 1 of the bill.  The amount of endowment gifts to be received is not determinable.

In addition to the transfer of matching funds, when the State Treasurer determines that the cumulative amount of endowment gifts received by all 23 public library foundations has reached $2.3 million, the State Treasurer will transfer to each public library from its separate challenge account the lesser of $100,000 or the balance remaining in that library’s challenge account.

Unexpended funds will be invested by the State Treasurer as part of the State Agency Pool, and will earn interest at an estimated rate of 5.07% for FY09, 5.07% for FY10, and 5.05% in FY11. Investment income earned will be deposited in the General Fund. The amount of investment income that will be earned is indeterminable, as the amount and timing of endowment gifts to be received are unknown.

This bill is effective July 1, 2008.  Any unexpended funds from the amount appropriated shall revert to the Budget Reserve Account on July 1, 2015.

On its own, this bill will not require additional personnel and/or funding.  However, passage of multiple bills of this type may result in a cumulative administrative impact to the Treasurer's Office.

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

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