COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 4494-01
Bill No.: SB 1221
Subject: Bonds: Higher Education
Type: Original
Date: March 2, 2004
FISCAL SUMMARY
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on General Revenue Fund |
$0 | $0 | $0 |
| 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 5 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 of the University of Missouri have prepared an economic impact analysis using the IMPLAN model. The model projects (see below) an indirect economic impact of $162,977,310 and 3,365 jobs created after one year. The model projects a ten-year impact of $1,629,773,100 and 33,650 jobs created. The model assumes $85,365,977 of outside grant support for the proposed projects.
| Economic Impact Analysis | ||||||||||
| Outside Grant Support | Economic Impact* | Job Growth** | ||||||||
| Project | Size (sq. ft.) | Purpose | # of Jobs | Support | 1 year | 5 year | 10 year | 1 year | 10 year | |
| MU Health Sciences Research Center: | 400,000 | Research space for biomedical research | 576 | $41,760,000 | $76,462,560 | $382,312,800 | $764,625,600 | 1,641 | 16,410 | |
| UMSL Benton Stadler Building | 133,200 | Research and teaching space for | 16 | $6,555,977 | $18,676,200 | $93,381,200 | $186,762,000 | 259 | 2,590 | |
| biotechnology and molecular and | ||||||||||
| cellular life sciences | ||||||||||
| UMR Mechanical Engineering Building | 76,332 | new | Research space for biomedical, | 26 | $4,550,000 | $8,331,050 | $41,655,250 | $83,310,500 | 179 | 1,790 |
| 63,413 | renovated | biomaterials, and manufacturing | ||||||||
| engineering | ||||||||||
| UMC Engineering Renovation | 92,200 | Teaching and research for Engineering | 50 | $12,500,000 | $22,887,500 | $114,437,500 | $228,875,000 | 500 | 5,000 | |
| students and faculty that will contribute | ||||||||||
| to interdisciplinary life science | ||||||||||
| development at MU | ||||||||||
| UMKC Health Sciences Building | 63,465 | Phase I | Research space for life and health | 320 | $20,000,000 | $36,620,000 | $183,100,000 | $366,200,000 | 786 | 7,860 |
| Phase I & Phase II | 190,480 | Phase II | sciences translational research | |||||||
| Summary | 1,019,090 | sq. ft. | 988 | $85,365,977 | $162,977,310 | $814,886,750 | $1,629,773,100 | 3,365 | 33,650 | |
| *The IMPLAN model predicts that every 1.0 dollars brought into the university creates | ||||||||||
| **IMPLAN shows every $1,000,000 brought into the university supports 39.292 jobs in the community: | ||||||||||
ASSUMPTION (continued)
Officials of the Office of Administration - Division of Accounting and - Division of Budget and Planning stated that the proposal would not directly affect state funds.
Oversight notes that the proposal's intent is to have the legislature begin appropriating funds to pay debt service on bonds beginning in FY 2008, which is beyond the scope of the fiscal note table. The proposal would not require the legislature to make any such appropriations. Oversight notes that the proposal potentially authorizes about $190,000,000 in bonds. Assuming 25-year maturity and six percent (6%) interest, the annual debt service would be approximately $14,900,000. (Total cost to retire bonds over twenty-five years would be about $372,100,000.)
The proposal assumes contributions and other funds provided by the University of $115,433,000 for the projects specified in the proposal. Oversight assumes fiscal impact to political subdivisions would be negotiated by the affected subdivisions and the University.
| FISCAL IMPACT - State Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| $0 | $0 | $0 |
| 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 have the General Assembly approve specified life sciences projects for the University of Missouri to be funded in part from revenue bond proceeds. Debt service on the bonds would be paid by future appropriations made by the General Assembly.
Part of the cost of projects would be paid by the University from contributions and other sources of funds.
DESCRIPTION (continued)
The proposal also authorizes the curators of the University to enter into a long-term ground lease for the purpose of construction of a hotel/convention center complex.
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 Administration - Division of Accounting
Office of Administration - Division of Budget and Planning
University Of Missouri
Mickey Wilson, CPA
Director
March 2, 2004