COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 2588-05

Bill No.: Perfected SCS for SJR 44

Subject: Constitutional Amendments: Roads and Highways

Type: Original

Date: February 18, 2004



FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2005 FY 2006 FY 2007
General Revenue ($73,680) ($12,148,536) ($24,297,072)
Total Estimated

Net Effect on

General Revenue

Fund

 ($73,680) ($12,148,536) ($24,297,072)



ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Highway Fund $0 $12,148,536 $24,297,072
State Highway Patrol Safety Fund* unknown unknown unknown
Road Fund unknown unknown unknown
Total Estimated

Net Effect on Other

State Funds

 $0

to unknown

 $12,148,536

to unknown

 $24,297,072

to unknown



* - State Highway Patrol Safety Fund would be created by adoption of this proposal.



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 6 pages.











ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Total Estimated

Net Effect on All

Federal Funds

 $0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Local Government unknown unknown unknown




FISCAL ANALYSIS



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 (MSHP) were unable to determine the amount of additional revenue, if any, that would be generated by the 5% of motor vehicle registration fee increases to be deposited into the "State Highway Patrol Safety Fund." Presently, 100% of such increases are distributed to counties (10%), cities (15%), and the State Road Fund (75%).



Officials of the Department of Revenue stated that their agency would lose $9,547,203 in general revenue funds in FY06, and $19,094,406 in FY07.



ASSUMPTION (continued)



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.



The Office of Administration - Division of Budget and Planning (OA) stated that their agency receive $11,903,133 in highway monies in FY04 that would be impacted by this proposal. Oversight assumes a loss of $2,380,627 in FY06 and $4,761,253 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 ($12,148,536) ($24,297,072)
ESTIMATED NET EFFECT ON GENERAL REVENUE FUND

($73,680)

($12,148,536)

($24,297,072)
HIGHWAY FUND
Savings - Various State Agencies $0 $12,148,536 $24,297,072
ESTIMATED NET EFFECT ON HIGHWAY FUND

$0

$12,148,536

$24,297,072
ROAD FUND
Cost - From lost motor vehicle
registration fee increases unknown unknown unknown
ESTIMATED NET EFFECT ON ROAD FUND

unknown

unknown

unknown
STATE HIGHWAY PATROL SAFETY FUND*
Revenue - From motor vehicle
registration fee increases unknown unknown unknown
ESTIMATED NET EFFECT ON ROAD FUND

unknown

unknown

unknown








FISCAL IMPACT - Local Government FY 2005 FY 2006 FY 2007
Cost - From lost motor vehicle
registration fee increases unknown unknown unknown


* - State Highway Patrol Safety Fund would be created by adoption of this proposal.





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, with exceptions, would be phased out at a rate of 20% per year. Those exceptions include:



The proposal would also change the distribution of motor vehicle sales tax proceeds. This change would be phased in starting in the fifth 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 states that the amount of proceeds credited to the State Road Fund will not include any revenues derived from the one-cent sales tax, Proposition C (approved by voters in 1982).



The proposal provides that beginning in the first year after voter adoption, five percent of any increase in state motor vehicle registration fees on motor vehicles, trailers, motorcycles, mopeds, and motortricycles shall be credited to a State Highway Patrol Safety Fund, which is to be established by the state treasury. The purpose of this fund is to cover the costs of administering and enforcing state laws and regulations, and it shall be exhausted prior to any appropriations being made to MSHP.



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 Administration - Division of Budget and Planning







Mickey Wilson, CPA

Director

February 18, 2004