Colorado Legislative Council Staff

STATE

REVISED FISCAL NOTE

(Replaces Fiscal Note dated January 5, 1998)

General Fund Revenue and Expenditure Impact

Cash Fund Revenue Impact

TITLE:            CONCERNING AN EXTENSION OF THE ANNUAL GENERAL FUND TRANSFER TO THE CAPITAL CONSTRUCTION FUND.

Summary of Legislation

* The amount of the investment earnings increase, if any, is dependent upon how quickly the fund balance is appropriated to capital construction projects during each year.

            This bill, as referred by the Senate Finance Committee (Senate Journal, January 21, 1998, page 80), requires an additional annual transfer of $100 million from the General Fund to the Capital Construction Fund Exempt (CCFE) for FY 1999-00, FY 2000-01, and FY 2001-02. The bill would become effective upon the signature of the Governor.

            This bill will reduce investment earnings to the General Fund and increase earnings to the Capital Construction Fund. Therefore, the bill is assessed as having a fiscal impact.

State Revenue

            Moneys in the General Fund are invested at an average annual earnings rate of 6.0 percent. The provisions of this bill will reduce General Fund investment earnings by $6,000,000 for FY 1999-00, FY 2000-01, and FY 2001-02.

State Expenditures

            This bill does not authorize or create state expenditures, but transfers $100,000,000 from the General Fund to the Capital Construction Fund for further appropriation.

Spending Authority

            This fiscal note would imply that no new state spending authority or appropriations are required to implement the provisions of the bill for FY 1998-99.

Departments Contacted

            Treasury                     Legislative Council Staff