Colorado Legislative Council Staff

STATE and LOCAL AND

STATUTORY PUBLIC ENTITY

REVISED CONDITIONALFISCAL NOTE

(replaces Fiscal Note dated January 22, 1198)

No State General Fund Impact

HUTF Revenue Impact

Local Revenue and Expenditure Impact

TITLE:            CONCERNING RECYCLING, AND, IN CONNECTION THEREWITH, EXTENDING THE PLASTICS AND WASTE TIRE RECYCLING PROGRAMS AND REQUIRING THAT ANY MONEYS APPROPRIATED FROM THE WASTE TIRE RECYCLING DEVELOPMENT CASH FUND TO THE DEPARTMENT OF LOCAL AFFAIRS THAT ARE NOT EXPENDED BY THE END OF THE FISCAL YEAR BE TRANSFERRED TO THE HIGHWAY USERS TAX FUND.

Summary of Legislation

            The bill, as amended by the Senate Transportation Committee, February 3, 1998, would transfer any moneys appropriated from the Waste Tire Recycling Development Fund to the Department of Local Affairs or to the Economic Development Fund that have not been expended/unencumbered by the end of a fiscal year to the Highway Users Tax Fund. The maximum percent of funds that may be allocated to the Division of Local Government would increase from 30 percent to 45 percent. Thirty percent of these funds could be used for projects to encourage recycling with private enterprise or for disposal or recycling of illegally dumped or stored waste tires. Fifteen percent of these funds may be used to provide for bid preferences that contain or make use of recycled tires. The remaining fifty-five percent would go to the Colorado Housing and Finance Authority. The automatic repeal of the waste tire recycling statutes and the plastics recycling statutes would be removed. This bill would become effective July 1, 1998.

State Revenues

            Under the current law, the Economic Development Fund received approximately $1,231,826 for use by the Colorado Housing and Finance Authority from the Waste Tire Recycling Development Cash Fund. This bill would reduce the percentage appropriated for use by the Colorado Housing and Finance Authority from 70 percent to 55 percent. This would reduce revenue to the Economic Development Fund by an estimated $264,748. For the purposes of this fiscal note, it is assumed that the revenues deposited into the Waste Tire Recycling Development Cash Fund in FY 1998-99 will be the same as in FY 1997-98.

State Expenditures

            The bill, as amended, would modify the distribution of moneys from the Waste Tire Recycling Development Cash Fund. The amount the Department of Local Affairs would receive would increase from 30 percent to 45 percent. The amendment would modify the use of the funds so that 30 percent of these funds could be used for projects to encourage recycling with private enterprise or for disposal or recycling of illegally dumped or stored waste tires. Fifteen percent of these funds may be used to provide for bid preferences that contain or make use of recycled tires. The remaining 55 percent of the fund would continue to be used by the Colorado Housing and Finance Authority. There would not be a change in the amount of the Department of Local Affairs’ expenditures from the Waste Tire Recycling Development Cash.

            The bill would also transfer any unexpended/unencumbered funds at the end of the fiscal year attributable to or transferred from the Waste Tire Recycling Development Cash Fund to the HUTF. In FY 1997-98, approximately $46,425 of the funds attributable to the Waste Tire Recycling Development Cash Fund were unexpended or unencumbered. The amount of funds transferred each fiscal year would vary depending on the demand for money from the existing programs. The State Highway Fund would receive 60 percent of the amounts transferred.

Local Government Impact

            Local Governments received approximately $527,925 in grant money in FY 1997. The estimated amount of grant money available would increase to 45 percent of the fund total in FY 1998-99. In addition, 15 percent of the funds could be used to provide bid preference for products purchased using recycled tires. Local governments would also receive additional HUTF distributions from revenues transferred to the HUTF. Cities would receive 18 percent and counties would receive 22 percent of the transfer.

Statutory Public Entity

            Current law appropriated $1,231,826 to the Economic Development Fund for use by the Colorado Housing and Finance Authority in FY 1997-98. This bill would reduce that transfer by $264,748 to approximately $967,077.

Spending Authority

            This fiscal note implies no additional spending authority would be required to implement this bill.

Departments Contacted

Local Affairs