COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 2713-01

Bill No.: SB 1046

Subject: Aircraft and Airports; Governor and Lt. Governor; Transportation

Type: Original

Date: February 5, 2002




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2003 FY 2004 FY 2005
Total Estimated

Net Effect on All

State Funds

$0 $0 $0



ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2003 FY 2004 FY 2005
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0





ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2003 FY 2004 FY 2005
Local Government $0 $0 $0

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 pages.

FISCAL ANALYSIS



ASSUMPTION



Officials with the Department of Transportation (MoDOT) assume the proposal has no fiscal impact on their agency but notes that it could have an adverse affect on federal and state funding for development of Lambert and Spirit of St. Louis Airports because it confuses who actually controls the airports.



Officials with the City of St. Louis (STL) indicated during a telephone conversation that they will use their response from the identical LR 0334-02 (2001 Session). The response is to be updated to reflect $935 million in outstanding airport debt as of June 30, 2001. STL's response from LR 0334-02 is as follows:



"Officials with the City of Saint Louis (STL) indicated that according to a legal interpretation from the City Counselor's office, the proposal would transfer responsibility for all bonded indebtedness and other obligations of Lambert Airport to the state, as the Missouri-St. Louis Metropolitan Airport Authority is a state agency. Figures provided indicated that the airport had estimated outstanding bonded indebtedness and construction liabilities of approximately $935 million, as well as possible costs for nuclear waste clean-up under federal Superfund legislation estimated at $325 million."



Oversight notes that the effective date of the proposal is January 1, 2005. Oversight further notes that the proposal states that "the authority shall honor all bonds, debts, outstanding obligations and contracts of any airport or airport authority affected by this section." However, RSMo 305.520 currently allows the Missouri-St. Louis Metropolitan Airport Authority to assume and pay or guarantee the payment of the principal and interest of any bonds secured by any airport in the Missouri-St. Louis metropolitan area. It further states that such an assumption or guaranty does not constitute a debt of the Authority or the state of Missouri within the meaning of the constitution and state law. Therefore, Oversight assumes there would be no state fiscal impact as a result of this provision. However, this assumption is also based on revenues earned by the airport being adequate to service all outstanding indebtedness and obligations. If airport revenues are not adequate to service the outstanding debt, then the state could potentially be required to honor the debt in order to maintain the state's current bond rating.



The St. Louis Metro Airport Authority of Lambert International Airport did not respond.











FISCAL IMPACT - State Government FY 2003

(10 Mo.)

FY 2004 FY 2005
GENERAL REVENUE FUND
$0 $0 $0

FISCAL IMPACT - Local Government FY 2003

(10 Mo.)

FY 2004 FY 2005
$0 $0 $0





FISCAL IMPACT - Small Business



No direct fiscal impact to small businesses would be expected as a result of this proposal.



DESCRIPTION



Under this proposal, the Missouri-St. Louis Metropolitan Airport Authority is given the responsibility for operation of the Lambert-St. Louis International Airport as of January 1, 2005. The existing Airport Authority members' terms will have expired by the time the authority assumes responsibility for operation of the airport in 2005. The City of St. Louis shall continue to own the airport. The members of the Authority shall represent St. Louis City and St. Louis, Jefferson, Franklin, and St. Charles Counties on the basis of population. One member shall preside for each 130,000 residents. The authority shall honor all bonds, debts and employee pension plans of the former airport authority. This proposal also states that the City of St. Louis may continue taxing businesses conducting activities within its airport.



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 Transportation

City of St. Louis





NOT RESPONDING



St. Louis Metro Airport Authority of Lambert International Airport









Mickey Wilson, CPA

Acting Director

February 5, 2002