COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 2588-03
Bill No.: SJR 44
Subject: Constitutional Amendments: Roads and Highways
Type: Original
Date: February 2, 2004
FISCAL SUMMARY
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| General Revenue | ($73,680) | ($30,357,372) | ($59,714,745) |
| Total Estimated
Net Effect on General Revenue Fund |
($73,680) | ($30,357,372) | ($59,714,745) |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Highway | $0 | $30,357,372 | $59,714,745 |
| Total Estimated
Net Effect on Other State Funds |
$0 | $30,357,372 | $59,714,745 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Local Government | $0 | $0 | $0 |
ASSUMPTION
Officials of the Department of Natural Resources (DNR) noted that their core budget from the Highway Fund was $80,997. Monies are used to review environmental impact statements for transportation projects. A 20% reduction in FY06 would cost DNR $16,199; an additional 20% reduction in FY07 would cost $32,399.
Officials of the Department of Public Safety - Missouri State Highway Patrol assume that the proposal would continue funding for their agency at approximately current levels. The moneys would come from a different source, but the proposal would not affect their agency fiscally or administratively.
Oversight assumes that the FY 04 appropriation is $124,048,907. The 10% funding reduction would be approximately $12,404,891 in FY 06 and $24,809,782 in FY 07.
Officials of the Department of Revenue stated that their agency would lose $13,620,630 in general revenue funds in FY06, and $27,241,260 in FY07.
Officials of the State Treasurer's Office stated that their agency would lose $97,529 in FY 06 and $99,967 in FY 07. However, Oversight assumes the loss of an additional 20% of funding in FY07, increasing the loss in that year to $195,058.
ASSUMPTION (continued)
The Office of Adminstration - Division of Budget and Planning (OA) stated that their agency receives $20,555,724 in highway monies in FY04 (not including MoDOT fringe benefits). Oversight assumes a loss of $4,111,145 in FY06 and $8,222,290 in FY07.
Office of Secretary of State officials stated that advertisement costs for the proposal would be $3,684 per column inch for three printings of the text of the proposal, the introduction, fiscal note summary, and affidavit. The proposal would be on the ballot for the November 2004 general election.
OA also indicated that the State Auditor's Office also received $534,890 in highway funds in FY04. Oversight assumes a loss of $106,978 in FY06 and $213,956 in FY07.
For fiscal note purposes, Oversight assumes that Highway Fund savings will be "made up" to agencies from the General Revenue Fund.
| FISCAL IMPACT - State Government | FY 2005 | FY 2006 | FY 2007 |
| GENERAL REVENUE FUND | |||
| Cost to Secretary of State | |||
| Newspaper Advertisements | ($73,680) | $0 | $0 |
| Cost - Various Agencies to replace | |||
| Highway Fund moneys | $0 | ($30,357,372) | ($59,714,745) |
| ESTIMATED NET EFFECT ON GENERAL REVENUE FUND |
($73,680) |
($30,357,372) |
($59,714,745) |
| HIGHWAY FUND | |||
| Savings - Various State Agencies | $0 | $30,357,372 | $59,714,745 |
| ESTIMATED NET EFFECT ON HIGHWAY FUND |
$0 |
$30,357,372 |
$59,714,745 |
| FISCAL IMPACT - Local Government | FY 2005 | FY 2006 | FY 2007 |
| $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 legislation would change the disbursement of transportation funding with respect to various state agencies. In the first fiscal year following voter adoption of the proposal, state road funds received by state agencies, except for Highway Patrol, would be phased out at a rate of 20% per year. State road funds received by the Highway Patrol would be phased out at a rate of 10% per year.
The proposal would also change the distribution of motor vehicle sales tax proceeds. This change would be phased in starting in the third year after voter adoption of the proposal. Currently, one-half of proceeds from motor vehicle sales taxes are credited to state road funds and one-half to the General Revenue Fund. Under terms of this proposal, the portion of motor vehicle sales taxes allocated to the General Revenue Fund would be shifted to the state road funds at rate increasing by 10% per year.
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 Natural Resources
Department of Public Safety - Missouri State Highway Patrol
Office of Secretary of State
Department of Revenue
Department of Transportation
State Treasurer's Office
Office of Adminstration - Division of Budget and Planning
Mickey Wilson, CPA
Director
February 2, 2004