Government royalty revenue-distribution.

08LSO-0324.L2

FISCAL NOTE

	FY 2008	FY 2009	FY 2010
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue Increase (Decrease):
SCHOOL FOUNDATION FUND	(92,400,000)	(187,300,000)	(215,200,00)
WILDLIFE NAT. RES. TRUST	92,400,000	100,100,000	0
SPECIAL ACCOUNT	0	87,200,000	215,200,000

Source of revenue increase (decrease):

Diversion of Federal Mineral Royalties (FMRs) over the $200 million cap from the School Foundation Program (SFP) to other accounts.

Assumptions:

The above estimates are based on FMR revenues projected in Table 7 of the January 2008 CREG forecast.

This bill creates a new diversion of over-the-cap FMRs normally distributed to the SFP to the Wyoming Wildlife and Natural Resource Trust Account (Wildlife Trust). This new diversion would only take place after the current diversion of FMRs to the Hathaway student scholarship account and the higher education endowment has reached its maximum combined total of $505.0 million. The Hathaway student scholarship account and the higher education endowment are projected to reach their maximum balances in FY08, based on January 2008 CREG projections. This new diversion to the Wildlife Trust would begin in FY08 and continue until the balance in the Wildlife Trust reaches $250 million. With this diversion, the Wildlife Trust would reach $250 million in FY09, based on current projections. After the balance in the Wildlife Trust reaches $250 million, remaining funds would be deposited into the Hathaway student scholarship account to the extent that additional amounts are prescribed by the legislature. After these additional amounts are directed to the Hathaway student scholarship account as prescribed by the legislature, remaining over-the-cap FMRs would be diverted to a Special Account to be invested by the State Treasurer until such time otherwise appropriated by the legislature to a specified trust account. The above estimates assume no additional distributions to Hathaway student scholarship account before the distribution to a Special Account.

Similar to the current diversion to the Hathaway student scholarship account and the higher education endowment, these proposed diversions would be reduced as necessary to ensure an unencumbered balance of $100 million in the SFP as of July 1 of each fiscal year. CRITICAL ASSUMPTION: The above estimates assume diversions would not need to be reduced to maintain the $100 million SFP balance.

This bill is effective immediately. Therefore the above estimates reflect changes in revenue distributions for FY 2008 through FY 2010.

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