TITLE: CONCERNING A REDUCTION IN THE ANNUAL ALLOWABLE INCREASE IN TOTAL STATE GENERAL FUND APPROPRIATIONS, AND, IN CONNECTION THEREWITH, REDUCING THE ALLOWABLE INCREASE FROM THE LESSER OF FIVE PERCENT OF COLORADO PERSONAL INCOME OR SIX PERCENT OVER GENERAL FUND APPROPRIATIONS FOR THE PREVIOUS FISCAL YEAR TO THE LESSER OF FIVE PERCENT OF COLORADO PERSONAL INCOME OR FIVE PERCENT OVER GENERAL FUND APPROPRIATIONS FOR THE PREVIOUS FISCAL YEAR.

Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues General Fund
State Expenditures General Fund		-$49,800,000
FTE Position Change	0.0 FTE	0.0 FTE
Other State Impact: Additional revenue available for capital construction needs would total a cumulative amount of $516.3 million from FY 2000-01 through FY 2003-04.
Effective Date: July 1, 2000.
Appropriation Summary for FY 1999-2000: None
Local Government Impact: None

With certain exceptions, current law limits total state General Fund appropriations to the lesser of five percent of Colorado personal income or six percent over the total state General Fund appropriations for the previous fiscal year. This bill requires that beginning with FY 2000-01, state General Fund appropriations would be limited to the lesser of five percent of Colorado personal income or five percent over the total state General Fund appropriations for the previous fiscal year.

A five percent limit on state General Fund appropriations growth beginning with the FY 2000-01 budget year will reduce General Fund appropriations $49.8 million in the first year, and by a cumulative amount of $555.4 million through FY 2003-04. General Fund transfers to the Controlled Maintenance Trust Fund (CMTF) would increase by $48.3 million during the same period. Fifty percent of the General Fund revenues for the prior fiscal year that are in excess of General Fund appropriations are transferred to the CMTF in January. The transfer cannot exceed $50 million.

Under current law and considering the reduction in the appropriations limit, without an accompanying tax cut, additional revenue available for capital construction needs, including increased highway funding, would total $516.3 million.

The fiscal note implies that no new spending authority or appropriations are required for FY 1999-00 to implement the bill.