This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SJR 030 - Establishes "Budget Savings Fund"
L.R. NO.  2440-04
BILL NO.  SCS for SJR 30
SUBJECT:  Constitutional Amendment: Appropriations
TYPE:     Original
DATE:     March 15, 1996



                              FISCAL SUMMARY

                    ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED          FY 1997              FY 1998             FY 1999

General Revenue      ($47,700)               ($0 to              ($0 to
                                      $100,000,000)       $105,000,000)

Budget Stabilization        $0   $0 to $100,000,000  $0 to $105,000,000

Total Estimated
Net Effect on All
State Funds          ($47,700)                   $0                  $0


                   ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED          FY 1997              FY 1998             FY 1999

None

Total Estimated
Net Effect on All
Federal Funds               $0                   $0                  $0


                    ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED          FY 1997              FY 1998             FY 1999

Local Government            $0                   $0                  $0


                              FISCAL ANALYSIS

ASSUMPTION

Officials of the State Treasurer's Office (STO) and the Office of
Administration (OA) said the proposal would not affect their offices
administratively.

Transfers to the Budget Stabilization Fund would, according to projections in
the Governor's budget for FY 1997, could be up to approximately $100,000,000
for FY 98. The Fund could have as much as approximately $105,000,000 in FY
99.

Advertisement costs for the proposal would be $1,220 per newspaper column
inch for the text of the proposal, the introduction, title, fiscal note
summary, and affidavit.  The proposal would be on the ballot for the November
1996 general election.


FISCAL IMPACT - State Government   FY 1997         FY 1998         FY 1999

BUDGET STABILIZATION FUND

Income-Transfers from General
  Revenue Fund                          $0              $0              $0
                                                        to              to
                                              $100,000,000    $105,000,000

NET EFFECT TO BUDGET SAVINGS
FUND                                    $0              $0              $0
                                                        TO              TO
                                              $100,000,000    $105,000,000


GENERAL REVENUE FUND

Cost-Secretary of State
  Newspaper Advertisements       ($47,700)

Cost-Transfers to Budget
  Stabilization Fund                    $0             ($0             ($0
                                                        to              to
                                             $100,000,000)   $105,000,000)


NET EFFECT TO GENERAL REVENUE
FUND                             ($47,700)             ($0             ($0
                                                        TO              TO
                                             $100,000,000)   $105,000,000)



FISCAL IMPACT - Local Government   FY 1997         FY 1998         FY 1999

                                        $0              $0              $0


DESCRIPTION

This proposal would create a Budget Stabilization Fund in the state treasury
for use in meeting program funding requirements of the state. The legislature
could appropriate monies to the Fund until the Fund's balance reached two and
one-half percent the net General Revenue Fund collections for the preceding
fiscal year.

In years in which the Governor reduced expenditures below appropriations or
in which there were a budget need due to a disaster, the General Assembly
could, upon request from the Governor and with a two-thirds majority vote of
each chamber, appropriate money from the Budget Stabilization Fund to fulfill
expenditures authorized by appropriations or to meet budget needs due to the
disaster.

Monies (plus interest) spent from the Budget Stabilization Fund would be paid
back to that Fund from whatever fund received monies from the Budget
Stabilization Fund in one-third increments during each of the next three
fiscal years after receipt of Fund monies.

If the balance of monies in and owed to the Budget Stabilization Fund at the
end of any fiscal year would be less than two and one-half percent of net
General Revenue Fund collections for that fiscal year the difference would
stand appropriated and be transferred to the Budget Stabilization Fund by the
fifteenth day of the succeeding fiscal year.

If the balance in the Budget Stabilization Fund at the end of any fiscal year
exceeded two and one-half percent of net General Revenue Fund collections for
that fiscal year the difference would stand appropriated and be transferred
to the General Revenue Fund by the fifteenth day of the succeeding fiscal
year.

This legislation is not federally mandated and would not require additional
capital improvements or rental space. Section 33.285, RSMo, established a
Budget Stabilization Fund in the state treasury.


SOURCES OF INFORMATION

Office of Administration
State Treasurer
Secretary of State