Grand Teton National Park-transfer of state lands.

11LSO-0387.L1

                                                         

FISCAL NOTE

 

 

 

FY 2012

FY 2013

FY 2014

NON-ADMINISTRATIVE IMPACT

 

 

 

Anticipated Revenue Increase (Decrease):

 

 

 

COMMON SCHOOL – Permanent Land Fund 

2,000

16,000,000

45,000,000

COMMON SCHOOL – Land Income Fund

(1,624)

(1,570)

430,430

 

 

Source of revenue of increase:

The land sale proceeds would be deposited into and invested as part of the Common School Permanent Land Fund. 

Yields earned from the common school permanent land fund are deposited into the Common School Permanent Land Income Account and then transferred to the school foundation fund. 

 

Source of revenue decrease:

Currently, the state receives $1,624 per year from a grazing lease on the only parcel that has public access (referred to in the proposed bill as the Kelly parcel).  Income from the grazing lease would be lost. 

 

Assumptions:

Proposed sale designates the purchase of certain sections of land over a period of 4 years, commencing January, 2012 and ending January, 2015.  Total purchase price is $107,002,000.

 

Yields for the common school permanent land fund are expected to be 2.70% in FY 2012, FY 2013 and FY 2014 (October CREG). 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prepared by:   Alex Kean, LSO  Phone: 777-7881

(Information provided by: Susan Child, Office of State Lands and Investments and Sharon Garland, Treasurer’s Office 

Phone: 777-3428 and 777-7475)