Colorado Legislative Council Staff

STATE and LOCAL

REVISED FISCAL IMPACT

(replaces fiscal impact dated April 16, 1999)

Drafting Number:

Prime Sponsor(s):

LLS 99-0332

Rep. Young

Sen. Teck

Date:

Bill Status:

Fiscal Analyst:

April 27, 1999

Senate Appropriations

Scott Nachtrieb (303-866-4752)

 

TITLE:            CONCERNING ENCOURAGEMENT OF PRIVATE-SECTOR TELECOMMUNICATIONS INVESTMENT BY PROVIDING INCENTIVES FOR THE PUBLIC SECTOR TO SERVE AS “ANCHOR TENANT”, AND MAKING AN APPROPRIATION THEREFOR.


Fiscal Impact Summary

FY 1999/2000

FY 2000/2001

State Revenues

General Fund

 


 

State Expenditures

General Fund

Cash Fund Exempt


$500,000

$4,300,000


$114,400

FTE Position Change

2.0 contract FTE

2.0 contract FTE

Other State Impact: None

Effective Date: Upon the Governor’s signature

Appropriation Summary for FY 1999-2000:

$2,800,000 from Capital Construction Fund for allocation to DOLA

$1,500,000 from Local Government Severance Tax Fund for allocation to DOLA

$500,000 GF and 2.0 contract FTE to the Department Local Affairs

Local Government Impact: Provides grants to local governments to provide enhanced telecommunications services.

 


Summary of Legislation


            The reengrossed bill, as amended by the Senate Business Affairs and Labor Committee on April 26, 1999, would authorize the Department of Personnel to provide connections to the telecommunication services and to act as a network provider for any agency financed by a political subdivision of the state. The amendment removes the Colorado Advanced Technical Institute from the bill and replaces it with the Department of Local Affairs (DOLA). DOLA would develop a grant program to allocate Capital Construction Funds and Local Government Severance Tax Funds to communities seeking to consolidate telecommunications services purchased from the private sector and connected via the digital network provided by the Department of Personnel. The bill specifies what the funds can be used for and what the funds can not be used to do. The commission would be directed to provide funding to communities where the proposal is of high quality, competitive with other similar communities, has the most telecommunications services and public offices connected, demonstrates private sector or non-profit entity participation, and indicates the amount of matching local funding available. Ten percent of the funds can be used for training, technical assistance, engineering, and consulting.



State Revenues


            State revenue sources would not be impacted by this bill.



State Expenditures


            The bill contains appropriation clauses that provide $4,676,000 for use in the grant program to be created by DOLA. Of that amount, $2,800,000 would be from Capital Construction Funds, $376,000 would be from the General Fund, and $1,500,000 would be from the Local Government Severance Tax Fund. There is also an appropriation for $124,000 GF to the Department of Local Affairs. The $124,000 GF would be used to fund 2.0 contract FTE for personnel to develop the grant program, assist locals in the grant application process, and disperse grant money. Of that amount, $88,023 would be for personal services, $10,000 for contract services, $12,400 for travel, $8,600 for capital outlay, and $4,977 for operating expenses in FY 1999-00. In FY 2000-01, DOLA would require 2.0 contract FTE and $114,400 GF. Of that amount, $88,023 would be for personal services, $4,977 for operating expenses, $10,000 for contract services, and $11,400 for travel.



Local Government Impact


            The bill would provide $4,676,000 in annual grant funds for three fiscal years that would be available to local governments to develop consolidated telecommunications services.



State Appropriations


            The bill contains an appropriations clause that provides $2,800,000 in Capital Construction Funds, $376,000 in General Funds, and $1,500,000 million in Local Government Severance Tax Funds beginning in FY 1999-00 and designates the funds to be used for the grant program. It also contains an appropriation for $124,000 GF and 2.0 contract FTE to the Department of Local Affairs.

 


Departments Contacted


            All Departments