Colorado Legislative Council Staff



(Replaces Fiscal Note dated January 30, 1998)

TABOR Refund Impact

No State General Fund Impact

Cash Fund Revenue and Expenditure Impact

Drafting Number:

Prime Sponsor(s):

LLS 98-573

Rep. McPherson


Bill Status:

Fiscal Analyst:

March 31, 1998

House Appropriations

Scott Nachtrieb (866-4752)


Summary of Legislation


FY 1998/99

FY 1999/2000

State Revenues

General Fund

Stationary Sources Control Cash Fund



State Expenditures

General Fund

Stationary Sources Control Cash Fund



FTE Position Change

1.4 FTE

1.4 FTE

Local Government Impact — None

            The bill, as amended by the House State, Veterans, and Military Affairs Committee, February 13, 1998, would declare short-term emission limits in existing permits are state enforceable only. It would also allow short-term limits that are necessary to protect air quality be written with the longest averaging period feasible to protect the public health and allow the source operating flexibility. 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 Revenues

            This bill would encourage operation and construction source permit holders to have their permits reviewed. It is assumed that 43 of the operating permitted sources would ask for permit reviews. Each source has approximately 15 permits for a total review of 645 permits. It is assumed that 15 percent of the construction permit holders or 187 (0.15 X 1250) would have their permit reviewed in FY 1998-99 and 1999-00. The total number of permits that would be reviewed under this bill has been estimated at 832 and each review would take 3 hours for a total of 2,496 hours. The Air Quality Control Division charges $50 an hour for permit review. This fee would generate $124,800 in cash funds to the Stationary Sources Control Fund in FY 1998-99 and 1999-00. After FY 1999-00, it is assumed that few if any permitted sources would be asking for changes to their permits.

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 division is responsible for supplying the Air Quality Control Commission with staff resources to conduct public hearings. It is assumed that no additional resources would be required to provide staff services to the Commission for any hearings that may occur as a result of this bill.

            The additional estimated 2,496 hours to review permits would require an additional 1.4 FTE and $76,594 in Stationary Sources Control Fund. Of this amount, $70,874 would be personal services, $700 would be operating costs, $2,500 would be for computers, and $2,520 would be for capital outlay.


Expenditures Not Included

            Pursuant to the Joint Budget Committee’s budget policies, the following expenditures have not been included in this fiscal note:


               health and life insurance costs; $3,096

               short-term disability costs; $131

               inflationary cost factors;

               leased space; and

               indirect costs.

Spending Authority

            This fiscal note implies that the Department of Health and Environment would require 1.4 FTE and $76,594 in Stationary Sources Control Cash Fund spending authority for FY 1998-99 to implement this bill.

Departments Contacted       Health and Environment