Colorado Legislative Council Staff
STATE AND LOCAL
FISCAL NOTE
General Fund Expenditure Impact
Cash Funds Exempt Expenditure Impact
Local Revenue Impact
Drafting Number: Prime Sponsor(s): |
LLS 98-098 Rep. Pankey
|
Date: Bill Status: Fiscal Analyst: |
January 15, 1998 House SVMA Janis Baron (866-3523) |
TITLE: CONCERNING THE LIMITATION OF STATE GENERAL FUND APPROPRIATIONS FOR THE PURPOSE OF INCREASING THE AMOUNT OF STATE GENERAL FUND MONEYS AVAILABLE FOR OTHER PURPOSES, AND, IN CONNECTION THEREWITH, ESTABLISHING A GRANT PROGRAM FOR EDUCATIONAL VOUCHERS TO BE FUNDED WITH A PORTION OF SUCH STATE GENERAL FUND MONEYS MADE AVAILABLE.
Summary of Legislation
STATE FISCAL IMPACT SUMMARY |
FY 1998/99 |
FY 1999/2000 |
State Revenues General Fund Other Fund |
|
|
State Expenditures General Fund: Reduction to Principle Departments Noted in Bill Department of Transportation Department of Higher Education Educational Voucher Fund (EVF) and Grant Program Department of Education — State Administration Cash Funds Exempt — EVF |
$ 0 0 0 0 55,628 0 |
$ (140,700,000) 70,300,000 35,200,000 35,200,000 51,328 35,200,000 |
FTE Position Change — Department of Education Nonclassified Position |
1.0 FTE Contract Labor |
1.0 FTE Contract Labor |
Local Government Impact — See Local Government Impact section of this fiscal note. |
The bill includes a number of provisions relative to General Fund appropriations, as identified below:
• FY 1999-00 — limits the General Fund appropriations to the Judicial Department, the Legislative Department, the Governor’s Office, and principal departments of state government to three percent over each department’s General Fund appropriation for FY 1998-99;
• Subsequent Fiscal Years — limits General Fund appropriations to departments to the rate of inflation, not to exceed the existing statutory spending limit of six percent over the prior year General Fund appropriations;
• General Fund Appropriations — appropriates to the Department of Transportation additional General Fund in excess of the three percent limit (for state highway construction and public-private initiatives) 50 percent of the balance remaining in the General Fund; appropriates to the K-12 Educational Voucher Fund 25 percent of the balance remaining in the General Fund; and appropriates to the Colorado Commission on Higher Education (for the Tuition Assistance Grant Program) 25 percent of the balance remaining in the General Fund, moneys appropriated pursuant to Section 24-75-201.1, C.R.S., as long as overall General Fund appropriations do not exceed current statutory limits;
• Spending Limit — may be exceeded under certain circumstances, including the declaration of a fiscal emergency by the General Assembly; and
• Educational Voucher Fund and Grant Program — is established and requires that General Fund moneys appropriated to the Fund are for grants to school districts to allow children to attend nonpublic schools; identifies the parameters of the program in addition to the responsibilities of the State Board of Education and the state’s school districts.
The bill is 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 Expenditures
Based on the Legislative Council, December 1997 General Fund overview forecast, the General Fund is allowed to grow at the maximum pace allowed by statute — 6.0%. Table 1, on page 3, provides a comparison of available General Fund appropriations growth under current law (6.0%) and HB 98-1147. Additionally, it identifies the amounts, under HB 98-1147, that would be available for Transportation, the Educational Voucher Fund and Grant Program, and the Tuition Assistance Grant Program.
Based on the November 1997 General Fund allowable expenditures projections, prepared by the Joint Budget Committee staff, Table 2, on page 5, provides a comparison of allowable General Fund expenditures growth under current law and HB 98-1147, for FY 1999-00 through FY 2002-03, for the following departments/program areas:
• Education — K through 12
• Health Care Policy and Financing — Medicaid
• Higher Education
• Corrections
• Human Services — Social Services Programs
• Human Services — Youth Corrections
These departments/program areas currently receive the greatest General Fund appropriations, and in total, account for projected allowable General Fund growth expenditures accordingly (under both current law and HB 98-1147):
Fiscal Year |
Percentage GF |
FY 1999-00 |
96.5% |
FY 2000-01 |
97.0% |
FY 2001-02 |
86.7% |
FY 2002-03 |
85.7% |
TABLE 1: Comparison of General Fund Growth Under
the Current 6% Limit and HB 98-1147
GENERAL FUND APPROPRIATIONS (in millions) |
FY 1999-00 |
FY 2000-01 |
FY 2001-02 |
FY 2002-03 |
Current Law — GF Appropriation Growth |
$281.4 |
$298.2 |
$316.1 |
$335.1 |
Current Law Growth Rate |
6.0% |
6.0% |
6.0% |
6.0% |
HB 98-1147 — GF Appropriation Growth |
$140.7 |
$179.8 |
$205.5 |
$206.6 |
HB 98-1147 Growth Rate |
3.0% |
3.6% |
3.9% |
3.7% |
Remaining Amount To Allocate Under HB 98-1147 |
$140.7 |
$119.3 |
$110.6 |
$128.5 |
Transportation |
$70.3 |
$59.6 |
$55.3 |
$64.2 |
K-12 Vouchers |
$35.2 |
$29.8 |
$27.7 |
$32.1 |
Higher Education Tuition Assistance |
$35.2 |
$29.8 |
$27.7 |
$32.1 |
Department of Education — The department will require $55,628 in FY 1998-99 and $51,328 in FY 1999-00 to comply with the bill’s provisions. Section 22-39-103 of the bill establishes the Educational Voucher Fund and Grant Program. At the state level, the department will require an additional nonclassified senior consultant to work with the State Board of Education to promulgate rules, draft the request for proposals, evaluate applications, make grant awards, and work with the school districts in implementing this program.
Local Government Impact
The bill may reduce the historic level of annual increases in General Fund support provided to school districts under the Public School Finance Act.
Spending Authority
The fiscal note indicates that for FY 1998-99, the Department of Education should receive a General Fund appropriation of $55,628.
Departments Contacted
Education Joint Budget Committee
Legislative Council Office of State Planning and Budgeting
TABLE 2: COMPARISON OF ALLOWABLE GF GROWTH UNDER CURRENT LAW AND HB 98-1147
|
FY 1999-00 |
FY 2000-01 |
||||||
Projected GF Growth Expenditures Under Current Law |
% of GF |
Projected GF Growth Expenditures HB 98-1147 |
Difference |
Projected GF Growth Expenditures Under Current Law |
% of GF |
Projected GF Growth Expenditures HB 98-1147 |
Difference |
|
Education Health Care Policy & Financing Corrections Human Services — Youth Corrections Human Services — SS Programs Higher Education TOTAL Allowable GF Appropriation Increase Over (Under) Available GF |
$ 90.6 69.2 50.3 7.5 22.7 31.2 $ 271.5 $ 281.4 (9.9) |
33.4% 25.5% 18.5% 2.8% 8.4% 11.5% |
$ 45.3 34.6 25.2 3.8 11.4 15.6 $ 135.8 $ 140.7 (4.9) |
$ (45.3) (34.6) (25.2) (3.8) (11.4) (15.6) $ (135.8) |
$ 130.1 75.6 25.4 7.5 17.6 33.1 $ 289.3 $ 298.2 (8.9) |
45.0% 26.1% 8.8% 2.6% 6.1% 11.4% |
$ 61.0 35.5 11.9 3.5 8.3 15.5 $ 173.6 $ 178.9 (5.3) |
$ (69.1) (40.1) (13.5) (4.0) (9.3) (17.6) $ (153.6) |
|
FY 2001-02 |
FY 2002-03 |
||||||
Projected GF Growth Expenditures Under Current Law |
% of GF |
Projected GF Growth Expenditures HB 98-1147 |
Difference |
Projected GF Growth Expenditures Under Current Law |
% of GF |
Projected GF Growth Expenditures HB 98-1147 |
Difference |
|
Education Health Care Policy & Financing Corrections Human Services — Youth Corrections Human Services — SS Programs Higher Education TOTAL Allowable GF Appropriation Increase Over (Under) Available GF |
$ 113.3 82.6 20.0 3.5 19.6 35.1 $ 274.1 $ 316.1 (42.0) |
41.3% 30.1% 7.3% 1.3% 7.2% 12.8% |
$ 56.1 40.9 9.9 1.7 9.7 17.4 $ 178.2 $ 205.5 (27.3) |
$ (57.2) (41.7) (10.1) (1.8) (9.9) (17.7) $ (138.4) |
$ 126.9 90.4 6.4 4.4 21.9 37.2 $ 287.2 $ 335.1 (47.9) |
44.2% 31.5% 2.2% 1.5% 7.6% 13.0% |
$ 60.0 42.7 3.0 2.1 10.4 17.6 $ 177.1 $ 206.6 (29.5) |
$ (66.9) (47.7) (3.4) (2.3) (11.5) (19.6) $ (151.5) |