Joint Committee Committee on Capital Development (03/21/2006)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:	03/21/2006	ATTENDANCE

Time:	08:05 AM to 08:58 AM	Berens	X
		McElhany	X
Place:	SCR 356	Riesberg	X
		Windels	X
This Meeting was called to order by		McFadyen	*
	Senator Bacon	Bacon	X

This Report was prepared by
	Bo Pogue
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Economic Forecast Update		Witness Testimony Only

08:06 AM

The committee was called to order. A quorum was present.

08:06 AM -- Economic Forecast Update

Mr. Mike Mauer, Chief Economist, Legislative Council Staff, provided a revenue update based upon the March 20 revenue forecast. Mr. Mauer explained a handout detailing the forecast and General Fund spending priorities (Attachment A). Mr. Mauer also explained how the revenue forecast impacts the money available for capital construction. Mr. Mauer responded to a question regarding the General Fund Exempt account. Discussion ensued regarding the spending priority for certificates of participation (COPs) and associated legislation. Mr. Mauer responded to a question regarding the use of monies in the Limited Gaming Fund. Further discussion ensued on the topic of COPs. Discussion followed regarding FY 2006-07 revenue available for capital construction.

08:20 AM

Mr. Mauer explained the growth of General Fund obligations from FY 2005-06 to FY 2006-07. Discussion returned to funding COPs from General Fund obligations and the difference between General Fund appropriations and obligations in general. Mr. Mauer explained the General Fund 6 percent appropriations growth and the impact of Referendum C on this growth.

08:30 AM

Discussion returned to General Fund Exempt revenue. Mr. Mauer explained the timing of the availability of revenue for capital construction, as well as the potential for running legislation to advance the time frame for the purpose of making the money available to stakeholders sooner. Mr. Mauer responded to questions regarding state expenditures not included in the General Fund overview found on Attachment A. Discussion followed regarding ways to access revenue for capital construction in FY 2006-07.

08:40 AM

Mr. John Ziegler, Director, Joint Budget Committee (JBC) Staff, explained how money is transferred to and appropriated from the Capital Construction Fund. Mr. Ziegler clarified that Attachment A provides a General Fund overview, as opposed to an overall state budget overview. Mr. Ziegler and Mr. Mauer explained the interaction between JBC Staff and Legislative Council Staff when conducting revenue and budget forecasts, and the differences between the products of the two offices. Mr. Ziegler and Mr. Mauer provided some historical background regarding the use of monies in the General Fund Excess Reserve and the reason for exempting transfers of monies to the Capital Construction Fund from the 6 percent limit.

08:50 AM

Mr. Ziegler responded to questions regarding the appropriation of monies from the Corrections Expansion Reserve Fund. Discussion ensued regarding the revenue shortfall for capital construction needs in future years.

08:58 AM

The committee adjourned.