COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 3709-01
BILL NO.: SJR 49
SUBJECT: Constitutional Amendments: Taxation and Revenue-General
TYPE: Original
DATE: March 8, 2000
FISCAL SUMMARY
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| General Revenue | ($135,464,421) | ($162,447,798) | ($164,044,888) |
| Permanent Trust | $0 or $135,420,621 | $0 or $162,447,798 | $0 or $164,044,888 |
| Total Estimated
Net Effect on All State Funds |
($43,800) or ($135,464,421) | $0 or ($162,447,798) | $0 or ($164,044,888) |
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 5 pages.
ASSUMPTION
Officials from the Office of Administration - Division of Accounting, the Department of Revenue, the State Treasurer's Office, the State Auditor's Office, the Department of Health, the Department of Mental Health, and the Department of Social Services stated the proposal would not affect their agencies administratively or that any additional duties could be carried out with existing resources.
Estimates of amounts Missouri will receive from the Master Settlement Agreement are ranged from estimates made by the Office of Administration - Division of Budget and Planning to estimates published by the National Governors Association (NGA).
Budget and Planning's estimates assume upward inflation adjustments of three percent (3%) to each years annual payment and downward volume adjustments of 10% in 2000, 12.7% in 2001, 14.9% in 2002, and 16.6% in 2003. These volume adjustment assumptions are those recommended by Federal Funds Information for States and are based on estimates developed by Standard and Poors.
The NGA figures do not include any offsets, reductions or adjustments; therefore, Oversight has included a 3% per year inflation adjustment.
For purposes of simplifying the fiscal note, Oversight has used the estimates of the Office of Budget and Planning. Please see the attachment for complete schedules of ranges of estimates.
Oversight assumes that in the absence of this proposal moneys from the settlement would be credited to the state's General Revenue Fund.
Advertisement costs for the proposal would be $4,3800 per newspaper column inch for three publications of the text of the proposal, the introduction, title, fiscal note summary, and affidavit. The proposal would be on the ballot for the November 2000 general election.
FISCAL IMPACT - State Government FY 2001 FY 2002 FY 2003
GENERAL REVENUE FUND
Cost - Secretary of State
Newspaper Advertisements ($ 43,800)
FISCAL IMPACT - State Government FY 2001 FY 2002 FY 2003
Loss - Tobacco Settlement ($135,420,621) ($162,447,798) ($164,044,888)
Cost - Distributions to taxpayers ($0 ($0 ($0
or or or
$135,420,621) $162,447,798) $164,044,888)
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND ($135,464,421) ($162,447,798) ($164,044,888)
PERMANENT TRUST FUND
Income - Tobacco Settlement $0 $0 $0
or or or
$135,420,621 $162,447,798 $164,044,888
ESTIMATED NET EFFECT ON
PERMANENT TRUST FUND $0 $0 $0
OR OR OR
$135,420,621 $162,447,798 $164,044,888
FISCAL IMPACT - Local Government FY 2001 FY 2002 FY 2003
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 offer two proposals concerning the disposition of funds received by the state as result of a legal settlement or award related to health-related issues of smoking.
DESCRIPTION (continued)
One would put the moneys in a permanent trust fund to be used for health and education purposes as determined by law.
One would have the moneys distributed as if the moneys were excess total state revenues under terms of section 18 of article X of the Missouri constitution.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. The proposal could affect Total State Revenue.
SOURCES OF INFORMATION
Department of Revenue
Governor
State Treasurer
Jeanne Jarrett, CPA
Director
March 8, 2000
| Year | OA - B&P | Governors | 3% CPI Increase | ||
| Association | |||||
| 1998 | $54,590,426 | $54,590,426 | $54,590,426 | ||
| 1999 | $0 | $0 | $0 | ||
| 2000 | $129,451,392 | $145,841,736 | $150,216,988 | ||
| 2001 | $135,420,621 | $157,485,647 | $167,076,523 | ||
| 2002 | $162,447,798 | $189,094,295 | $206,623,336 | ||
| 2003 | $164,044,888 | $190,883,868 | $214,820,705 | ||
| 2004 | $143,399,390 | $159,313,061 | $184,659,769 | ||
| 2005 | $144,834,156 | $159,313,061 | $190,203,864 | ||
| 2006 | $146,278,082 | $159,313,061 | $195,907,271 | ||
| 2007 | $147,740,792 | $159,313,061 | $201,785,923 | ||
| 2008 | $164,693,218 | $175,833,051 | $181,916,875 | ||
| 2009 | $166,353,707 | $175,833,051 | $236,266,871 | ||
| 2010 | $168,003,541 | $175,833,051 | $243,352,943 | ||
| 2011 | $169,675,393 | $175,833,051 | $250,667,598 | ||
| 2012 | $171,378,869 | $175,833,051 | $261,340,664 | ||
| 2013 | $173,100,158 | $175,833,051 | $265,929,906 | ||
| 2014 | $174,833,563 | $175,833,051 | $273,895,144 | ||
| 2015 | $176,602,091 | $175,833,051 | $282,124,130 | ||
| 2016 | $178,364,609 | $175,833,051 | $290,581,700 | ||
| 2017 | $180,168,255 | $175,833,051 | $299,303,019 | ||
| 2018 | $188,424,839 | $182,059,072 | $319,204,171 | ||
| 2019 | $190,339,585 | $182,059,072 | $328,780,478 | ||
| 2020 | $192,257,965 | $182,059,072 | $338,629,874 | ||
| 2021 | $194,207,025 | $182,059,072 | $348,788,770 | ||
| 2022 | $196,152,138 | $182,059,072 | $359,257,167 | ||
| 2023 | $198,156,125 | $182,059,072 | $370,035,064 | ||
| 2024 | $200,180,829 | $182,059,072 | $381,140,667 | ||
| 2025 | $202,222,663 | $182,059,072 | $392,573,977 | ||
| Total | $4,513,322,118 | $4,589,951,302 | $6,989,673,821 |