COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 4745-01
Bill No.: SB 1305
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 (see attached) projects 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.
Officials of the Office of Administration - Division of Accounting stated that, since the proposal only authorizes projects, there would be no fiscal impact. They did note that the proposal potentially authorizes about $290,000,000 in bonds. Assuming 25-year maturity and six percent (6%) interest, the annual debt service would be approximately $22,700,000. (Total cost to retire bonds over twenty-five years would be $567,500,000.)
The proposal assumes local funds of at least $115,433,000 for the projects specified in the proposal. (There is non-specific proposal for the Coordinating Board for Higher Education of $100,000,000 from bond proceeds and an indeterminate amount from local funds). Oversight assumes these would be funds raised by the University from grants and contributions and that the direct fiscal impact to political subdivisions would be negotiated by the affected subdivisions and the University.
ASSUMPTION (continued)
Officials of the Department of Higher Education have not yet responded to the proposal.
| 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 grant authorization to commence specified life sciences projects as approved by the Coordinating Board for Higher Education. The projects would be funded from bond proceeds and local funds.
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
University Of Missouri
NOT RESPONDING - Department of Higher Education
Mickey Wilson, CPA
Director
March 2, 2004
| 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: | ||||||||||