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