Colorado Legislative Council Staff

STATE

FISCAL NOTE

TABOR Refund Impact

No General Fund Impact

HUTF Revenue and Expenditure Impact

Drafting Number:

Prime Sponsor(s):

LLS 98-515

Rep. McPherson

Sen. Powers

Date:

Bill Status:

Fiscal Analyst:

January 3, 1998

House Transportation

Scott Nachtrieb (866-4752)

TITLE:            CONCERNING REGULATION BY THE DEPARTMENT OF TRANSPORTATION OF SIGNS LOCATED ON RIGHTS-OF-WAY OF INTERSTATE HIGHWAYS, AND, IN CONNECTION THEREWITH, AUTHORIZING THE PLACEMENT OF BUSINESS SIGNS FOR TOURIST-ORIENTED ATTRACTIONS, AUTHORIZING THE PLACEMENT OF BUSINESS SIGNS IN URBANIZED AREAS, AND ALLOWING FOR THE FINANCING OF SUCH SIGNAGE THROUGH PUBLIC-PRIVATE INITIATIVES.


Summary of Legislation


            The bill would expand the existing information sign program under which businesses may, for a fee, sponsor the placement of a sign which includes their identifying names or marks. Signs for tourist-oriented attractions of regional interest to the traveling public would be added to the program. A provision of current law which limits the fee the Department of Transportation (DOT) could charge to a business for sponsorship of such a sign to the actual cost of erecting the sign, maintaining the sign, and administration of the program would be eliminated. This would allow the DOT to contract with private businesses to implement all or part of the specific information and tourist-oriented directional sign programs through public-private initiatives. The bill will become effective at 12:01 a.m. on the day following the ninety-day period after adjournment sine die of the General Assembly, or on the date of the official declaration of the vote of the people as proclaimed by the Governor, if a referendum petition is filed pursuant to Article V, Section 1 (3) of the State Constitution.


STATE FISCAL IMPACT SUMMARY

FY 1998/99

FY 1999/2000

State Revenues

General Fund

State Highway Fund



($30,710)



($45,460)

State Expenditures

General Fund

State Highway Fund



($30,710)



($45,460)

FTE Position Change

(0.9 FTE)

(1.2 FTE)

Local Government Impact — None


State Revenues


            The bill allows the DOT to contract with private entities to contract all or a part of this program to private entities. Contracting this program out would reduce revenues that the DOT currently collects or would collect from this program in the future. The amount of reduced revenue to the State Highway Fund is estimated to be $30,710 in FY 1998-99 and $45,460 in FY 1999-00.


TABOR Refund Impact


            Section 20 of Article X of the Colorado Constitution, limits the maximum annual percentage increase in state fiscal year spending. Once total state revenue from all sources that are not specifically excluded from fiscal year spending exceeds these limits for the fiscal year, the state constitution requires that the excess shall be refunded in the next fiscal year unless voters approve a revenue change as an offset. Based on the current Legislative Council economic forecast, it is projected that the state will be in a TABOR refund position during each of the next five fiscal years. Any increase or decrease in state revenue from changes in fees, fines, licenses, or other revenue sources will affect the amount of the state revenue to be refunded.


State Expenditures


            The bill would allow the DOT to privatize the sign programs for tourist oriented directional signs and specific information signs. The workload reduction is estimated to be 0.9 FTE and $30,710 in FY 1998-99 and 1.2 FTE and $45,560 in FY 1999-00 in State Highway Funds. The DOT was not appropriated any additional FTE when this program was instituted. The DOT adjusted resources and workloads to accommodate this new program. By allowing this program to be contracted to private entities, the workload associated with this program would be available for other projects within DOT.

Spending Authority


            This fiscal note implies that the Department of Transportation would not require a change in spending authority for FY 1998-99 to implement this bill.


Departments Contacted


            Transportation