State common school trust land management account. |
11LSO-0298.L1 |
FISCAL NOTE
This bill requires an estimated distribution of $4,130,000 in FY 2012-FY 2013 from the Common School - Permanent Land Fund (CSPLF) into the Common School Trust Land Management Account within the Permanent Land Fund. The estimate was calculated by the Office of State Lands and Investments and is based on current commodity price and volume trend data for the first half of calendar year 2010. This estimate is conditioned upon and subject to market volatility.
DETAIL OF APPROPRIATION
Agency #: 060 Agency Name: Office of State Lands and Investments
Unit: 060 Unit Name: Office of State Lands and Investments
EXPENDITURE BY SERIES AND YEAR FY 2011 FY 2012 FY 2013
0900 Contractual Services Costs $2,230,000 $1,900,000
Total Expenditure Per Year: $2,230,000 $1,900,000
Grand Total Expenditure: $4,130,000
Total Appropriated to Agency: $4,130,000
Total Appropriated by Fund
COMMON SCHOOL – Permanent Land FUND: $4,130,000
Description of Appropriation: Subject to Board approval, funding distributed by this bill shall be used by the Office of State Lands and Investments to fund projects that will preserve and enhance the asset value of common school surface and mineral lands held in trust by the State of Wyoming.
Assumptions: The case load for capital investments and projects that will preserve or enhance the value of state common school trust land will increase, but it will not require additional full time staff. There will be an increase in contractual services. Furthermore, the increased amount of funding would allow the agency to consider seasonal/part-time positions necessary to efficiently and effectively complete Board-approved trust preservation and enhancement projects.
Source of Revenue Decrease: One percent (1%) of the CSPLF revenue received in the prior fiscal year will be deposited into the Common School Trust Land Management Account.
Assumptions: The CSPLF would be decreased by the same amount that would go into the newly created common school trust land management account as shown above, thus the funds available for investment would decrease and thus investment income would decrease. Based on the yields shown above, investment earnings in the CSPLF would decrease as follows:
FY 11-$2,230,000 x 2.4% = $53,520; FY12-$1,900,000 x 2.7% = $51,300; FY13-$1,675,000 x 2.7% = $45.225
Prepared by: Alex Kean, LSO Phone: 777-7881
(Information provided by: Susan Child, State Lands and Investments and Sharon Garland, State Treasurer’s Office Phone:777-3428 and 777-7475)