This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0123 - Changes operational control of the St. Louis International Airport
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 0132-02
BILL NO.: SB 123
SUBJECT: Airports
TYPE: Original
DATE: February 17, 1999
FISCAL SUMMARY
|
ESTIMATED NET EFFECT ON STATE FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 3 pages.
FISCAL ANALYSIS
ASSUMPTION
Officials of the Department of Transportation assume that there would be no fiscal impact to the department or to the state as a result of this proposal.
Officials of the City of St. Louis indicate that a legal interpretation from the City Counselor's office indicates that the proposal would transfer responsibility for all bonded indebtedness and other obligations of Lambert Airport to the state, as the Missouri-St. Louis Metropolitan Airport Authority is a state agency. Figures provided indicated that the airport had estimated outstanding bonded indebtedness and construction liabilities of approximately $428,000,000, as well as possible costs for nuclear waste clean-up under federal Superfund legislation estimated at $325,000,000.
Oversight notes that the effective date of the proposal is January 1, 2004; therefore, any potential fiscal impact would not be effective until after that date. Oversight also notes that the proposal states that "the authority shall honor all bonds, debts, outstanding obligations and contracts of any airport or airport authority affected by this section." However, RSMo 305.520 currently allows the Missouri-St. Louis Metropolitan Airport Authority to assume and pay or guarantee the payment of the principal and interest of any bonds secured by any airport in the Missouri-St. Louis metropolitan area. It further states that such an assumption or guaranty does not constitute a debt of the Authority or the state of Missouri within the meaning of the constitution and state law. Therefore, Oversight assumes there would be no state fiscal impact as a result of this provision. However, this assumption is also based on revenues earned by the airport being adequate to service all outstanding indebtedness and obligations. If airport revenues are not adequate to service the outstanding debt, then the state could potentially be required to honor the debt in order to maintain the state's current bond rating.
The provision in the proposal that would eliminate the current statutory prohibition against the general assembly appropriating funds to the Missouri-St. Louis Metropolitan Airport Authority would also not be effective until January 1, 2004 and would therefore have no fiscal impact during the fiscal note period. Fiscal notes for previous similar legislation have reflected potential annual costs (subject to appropriation) of $150,000, representing personal service, fringe benefits, and equipment and expense costs for the Authority.
| FISCAL IMPACT - State Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| 0 | 0 | 0 | |
| FISCAL IMPACT - Local Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| 0 | 0 | 0 | |
| FISCAL IMPACT - Small Business | |||
| No direct fiscal impact to small businesses would be expected as a result of this proposal. | |||
DESCRIPTION
The proposal would transfer the operation of any and all international airports located in Missouri within fifty miles of the City of St. Louis to the Missouri-St. Louis Metropolitan Airport Authority. The ownership of any such airport would not change. The Authority would be required to honor all bonds, debts, outstanding obligations and contracts of any such airport. The membership of the Authority would also be revised.
The proposal would remove the current statutory prohibition against the general assembly appropriating state moneys to the Missouri-St. Louis Metropolitan Airport Authority.
The legislation is to be effective January 1, 2004.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Transportation
City of St. Louis
Jeanne Jarrett, CPA
Director
February 17, 1999