COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 0487-02
Bill No.: Perfected SS for SB 28
Subject: Governor: Taxation and Revenue - General
Type: Original
Date: April 15, 2003
FISCAL SUMMARY
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| General Revenue | ($97,009) | ($40,811) | ($41,833) |
| Total Estimated
Net Effect on General Revenue Fund |
($97,009) | ($40,811) | ($41,833) |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on Other State Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Local Government | $0 | $0 | $0 |
ASSUMPTION
Officials from the Office of the Governor indicated that the proposal would not affect their office, administratively.
Officials of the State Treasurer note that: 1) the Treasurer is to approve disbursements from the Budget Stabilization Fund, and 2) the Budget Stabilization Fund would be a subaccount of the General Revenue Fund.
The Treasurer normally approves disbursements on funds which the Treasurer also administers. The Treasurer would be the custodian of the Budget Stabilization. The Treasurer would request an Account Analyst I to monitor disbursements from the Fund. (If the duty to approve disbursements from the Fund were removed, the Treasurer would not request additional personnel.)
Officials note that the state accounting system is not set up for subaccounts. The Treasurer's system was designed to accommodate the state accounting and cannot distribute interest below the fund level. They state that reconfiguring the Treasurer's interest distribution system to distribute interest at the subaccount level would require one-time systems analysis and programming costs of about $60,000. (If the Fund were an account of the General Revenue Fund ASSUMPTION (continued)
instead of a subaccount, there would be no need to redesign the Treasurer's systems.)
| FISCAL IMPACT - State Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| GENERAL REVENUE FUND | |||
| Cost - State Treasurer (STO) | |||
| Personal Service (1 FTE) | ($23,442) | ($28,833) | ($29,554) |
| Fringe Benefits | ($9,487) | ($11,669) | ($11,961) |
| Expense and Equipment | ($64,080) | ($309) | ($318) |
| ($97,009) | ($40,811) | ($41,833) | |
| ESTIMATED NET EFFECT ON GENERAL REVENUE FUND |
($97,009) |
($40,811) |
($41,833) |
| FISCAL IMPACT - Local Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This proposal would specify calculation of the revenue estimate upon which the Governor would prepare budget recommendations.
It would also establish a Supplemental Budget Stabilization Fund, a subaccount of the General Revenue Fund, for general revenues received which exceed the maximum of general revenue appropriations allowed by this proposal. Fund moneys would be available for appropriation by the General Assembly from the first day of a fiscal year or any subsequent fiscal year.
The State Treasurer would be custodian of the Fund and would approve disbursements from the Fund.
DESCRIPTION (continued)
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. This proposal would not affect Total State Revenue.
SOURCES OF INFORMATION
Office of the Governor
State Treasurer
Mickey Wilson, CPA
Director
April 15, 2003