Colorado Legislative Council Staff
STATE
REVISED FISCAL NOTE
(Replaces Fiscal Note dated January 23, 1998)
State General Fund Expenditure Impact
State Cash Fund Revenue and Expenditure Impact
Drafting Number: Prime Sponsor(s): |
LLS 98-351 Rep. May Sen. Powers |
Date: Bill Status: Fiscal Analyst: |
April 30, 1998 Senate 3rd Reading Scott Nachtrieb (866-4752) |
TITLE: CONCERNING REVENUES ALLOCATED TO THE CAPITAL CONSTRUCTION FUND FOR STATE HIGHWAY CONSTRUCTION PROJECTS, AND MAKING AN APPROPRIATIONS IN CONNECTION THEREWITH.
Summary of Legislation
The revised bill would increase the current $50 million General Fund Reserve transfer by $100 million to $150 million. One-hundred million dollars would be available for appropriation for highway construction purposes. The current diversion of 10 percent of the sales and use tax to the Highway Users Tax Fund (HUTF) would be extended an additional six years until FY 2007-08. Cities and counties do not receive any of the sales and use tax diversion. The bill would become effective upon the Governor’s signature.
STATE FISCAL IMPACT SUMMARY |
FY 1998/99 |
FY 1999/2000 |
State Revenues General Fund (Interest Earnings) State Highway Fund (GF Transfer) |
($6,000,000) $100,000,000 |
|
State Expenditures General Fund (Transfer to State Highway Fund) |
$100,000,000 |
|
FTE Position Change |
None |
None |
Local Government Impact — None |
State Revenues
The bill would increase the appropriation from the General Fund Reserve to the Capital Construction fund by $100 million. The bill appropriates the $100 million to the Department of Transportation. These revenues would be deposited into the State Highway Fund. Transferring $100 million would reduce the interest earning to the General Fund. It is estimated that the General Fund earns interest at six percent annually. This transfer would reduce interest earning to the General Fund by an estimated $6.0 million in FY 1998-99.
Highway Users Tax Fund. Under current law, ten percent of the sales and use taxes attributable to the sale of motor vehicles and related products is diverted to the State Highway Fund in the Highway Users Tax Fund (HUTF) until FY 2001-02. The bill would extend the diversion another six years. Table I below provides an estimate of the extended diversion of sales and use taxes for each year. This bill would divert approximately $1.4 billion in additional sales and use taxes in the next ten fiscal years to the HUTF.
Capital Construction Fund. The bill would also transfer $100 million in General Funds to the Capital Construction Fund in FY 1998-99.
Table I
Revenues Made Available For Transportation Purposes by HB 98-1213 - Revised |
|||||||||||
($ in millions) |
|||||||||||
|
FY 98-99 |
FY 99-00 |
FY 00-01 |
FY 01-02 |
FY 02-03 |
FY 03-04 |
FY 04-05 |
FY 05-06 |
FY 06-07 |
FY 07-08 |
TOTAL |
Sales/Use Tax * |
$0.0 |
$0.0 |
$0.0 |
$0.0 |
$200.9 |
$211.0 |
$221.6 |
$232.7 |
$244.4 |
$256.7 |
$1,367.3 |
$100 Transfer |
100 |
0 |
0 |
0 |
0 |
|
|
|
|
|
100 |
TOTAL |
$100.0 |
$0.0 |
$0.0 |
$0.0 |
$200.9 |
$211.0 |
$221.6 |
$232.7 |
$244.4 |
$256.7 |
$1,467.3 |
* Twenty percent of the state increase may be used for major investment study corridors.
State Expenditures
The bill would divert $100.0 million in General Funds in FY 1998-99 identified in Table I. In FY 2002-03, $200.9 million in additional sales and use tax revenues would be diverted to the State Highway Fund. The bill would increase the amount of money available for state highway projects by an estimated $1,367.3 million in the next ten fiscal years.
State Expenditures
The Department of Transportation would receive an additional $100 million for highway construction projects and any interest earnings that may accrue. The projects would be submitted to the Capital Development Committee for review.
Spending Authority
The bill contains the correct spending authority.
Departments Contacted Transportation