Colorado Legislative Council Staff

STATE

FISCAL NOTE

TABOR Refund Impact

General Fund Revenue and Expenditure Impact

Cash Fund Revenue and Expenditure Impact

Drafting Number:

Prime Sponsor(s):

LLS 98-670

Rep. Grampsas

Sen. Lacy

Date:

Bill Status:

Fiscal Analyst:

February 6, 1998

House SVMA

Steve Tammeus (866-2756)

 

TITLE:            CONCERNING THE CREATION OF A TRUST FUND FOR THE PURPOSE OF FUNDING FUTURE CAPITAL CONSTRUCTION PROJECTS FOR THE UNIVERSITY OF COLORADO HEALTH SCIENCES CENTER AT THE FORMER FITZSIMONS ARMY BASE, AND MAKING AN APPROPRIATION THEREWITH.


Summary of Legislation


STATE FISCAL IMPACT SUMMARY

FY 1998/99

FY 1999/2000

State Revenues

General Fund

U of C HSC at Fitzsimons Trust Fund

U of C HSC at Fitzsimons Trust Fund - From CCFE


(Investment Earnings)

Investment Earnings

To be determined


(Investment Earnings)

Investment Earnings

To be determined

State Expenditures

General Fund - to CCFE

CCFE - to the Trust Fund

U of C HSC at Fitzsimons Trust Fund


To be determined

To be determined

To be determined


To be determined

To be determined

To be determined

FTE Position Change

None

None

Local Government Impact — None


            This bill creates the University of Colorado Health Sciences Center at Fitzsimons Trust Fund to be comprised of General Fund excess revenues that are transferred to the Capital Construction Fund then appropriated to the trust fund. Moneys in the trust fund may be appropriated to pay for capital construction projects for the University of Colorado Health Sciences Center at the former Fitzsimons Army Base that have received the prior approval of the Board of Regents of the University of Colorado, the Colorado Commission on Higher Education, the Capital Development Committee, and the Joint Budget Committee.


            The principal and investment earnings of the trust fund are to remain the fund at the end of each fiscal year. The bill prohibits the moneys in the trust fund from being subject to any management fees imposed by law for the benefit of the General Fund. The bill authorizes the State Treasurer to invest the trust fund moneys in certain types of deposits and investments. The bill requires the State Treasurer to certify to the General Assembly the amount of investment earnings actually earned during the previous year, and to estimate the amount of investment earnings to be earned during the current year.


            The bill transfers an unspecified amount from the General Fund to the Capital Construction Fund. The bill also appropriates an unspecified amount from the Capital Construction Fund to the University of Colorado Health Sciences Center at Fitzsimons Trust Fund for FY 1998-99. The bill will become effective upon the signature of the Governor.



State Revenues


            The State Treasurer anticipates to invest the principal of the trust fund at an earnings rate of 6.0 percent for FY 1998-99 and 5.75 percent for FY 1999-2000. As a result, the provisions of this bill will reduce the investment earnings of the General Fund and increase investment earnings of the trust fund by an equal amount.



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 State Treasurer will not incur additional expenses to administer the trust fund. This fiscal note assumes that subsequent appropriations would be required from the trust fund to the Department of Higher Education to support capital construction expenditures at the Health Sciences Center at Fitzsimons.



Spending Authority


            This bill will require an unspecified amount of moneys to be transferred from the General Fund to the Capital Construction Fund for appropriation to the University of Colorado Health Sciences Center at Fitzsimons Trust Fund for FY 1998-99.



Departments Contacted


            State Treasurer           Higher Education