Colorado Legislative Council Staff

STATE

FISCAL NOTE

No State General Fund Impact

Cash Fund Revenue and Expenditure Impact


Drafting Number:

Prime Sponsor(s):

LLS 98-907

Rep. Taylor

Date:

Bill Status:

Fiscal Analyst:

April 7, 1998

House Business Affairs

Steve Tammeus (866-2756)

 

TITLE:            CONCERNING AUTHORIZATION FOR THE EXPENDITURE OF MONEYS FROM THE DEPARTMENT OF STATE CASH FUND BY THE COLORADO TOURISM BOARD DURING THE 1998-99 FISCAL YEAR.


Summary of Legislation


STATE FISCAL IMPACT SUMMARY

FY 1998/99

FY 1999/2000

State Revenues

General Fund

Colorado Tourism Promotion Fund



up to $2,300,000



 

State Expenditures

Secretary of State Cash Fund to Tourism Promotion Fund

Colorado Tourism Promotion Fund


up to $2,300,000

up to $2,300,000


 

FTE Position Change

0.5 FTE

None

Local Government Impact — None


            This bill authorizes the appropriation of up to $2,300,000 from the Department of State Cash Fund to the Colorado Tourism Board under the Department of Local Affairs for FY 1998-99. The bill authorizes the money to be used as specified by the statutory powers and duties of the board, except that the bill prohibits the money from being used for Colorado Welcome Centers and state highway maps. The bill would become effective upon the signature of the Governor.


            The bill will affect state cash fund expenditures. Therefore, the bill is assessed as having a state fiscal impact.



State Expenditures


            This bill will appropriate up to $2,300,000 from the Secretary of State Cash Fund to the Colorado Tourism Promotion Fund for FY 1998-99. The Secretary of State indicates this amount is currently not encumbered, and if appropriated, will not affect the Office of the Secretary of State.  

            The Colorado Tourism Board currently is authorized to establish its annual operating budget. This fiscal note assumes the board will encumber the entire amount of the appropriation during FY 1998-99. The Department of Local Affairs anticipates the board will expend the funds on printed media promotions and evaluation of advertising vendors. These expenditures would be consistent to the board’s operating budget of $2.1 million for FY 1997-98.


            Under current law, the Colorado Tourism Board in cooperation with the Colorado Travel and Tourism Authority (CTTA) has provided volunteers to administer the board’s operational responsibilities. The CTTA has managed FY 1997-98 expenditures on behalf of the board. As of this date, the CTTA executive director has resigned and no replacement has been designated. As a result, the department believes that departmental personnel should be responsible for state program and funding administration.


            The department indicates that additional staff would be required to perform the following administrative duties:

               contract development and administration;

               RFP development and procurement;

               performance reviews of contractors and subcontractors;

               confirmation of ad placements and accounts payable;

               advertisement partnership development;

               Colorado Tourism Board staff support;

               report development and distribution; and

               marketing evaluations.


            Table 1 provides a summary of the Colorado Tourism Promotion Fund expenditures to support the provisions of this bill.


Department of Local Affairs

Colorado Tourism Promotion Fund Expenditures

 

FY 1998-99

FY 1999-2000

Personal Services

Admin Prog Spec I (grade 85, step 1)

PERA/Medicare

Total


0.5 FTE - $15,504

2,008

$17,512

0

Operating Expenses

$2,300

0

Legal Expenses

0

0

Office Furniture/Computer

$2,150

0

Tourism Promotions

up to $2,278,038

0

Total Expenses

0.5 FTE and up to $2,300,000

0



Spending Authority


            This fiscal note would imply that an appropriation of up to $2,300,000 from the Secretary of State Cash Fund to the Colorado Tourism Promotion Fund would be required for FY 1998-99. Of that amount the Department of Local Affairs would require an appropriation of 0.5 FTE and up to $2,300,000.



Departments Contacted


            Secretary of State                   Local Affairs