Colorado Legislative Council Staff

LOCAL

CONDITIONAL FISCAL IMPACT

No State General Fund Impact


Drafting Number:

Prime Sponsor(s):

LLS 99-0275

Sen. Arnold

Date:

Bill Status:

Fiscal Analyst:

January 7, 1999

Senate Education

Steve Tammeus (303-866-2756)

 

TITLE:            CONCERNING THE AUTHORITY OF LOCAL GOVERNMENTS TO ISSUE REVENUE BONDS TO FINANCE EDUCATIONAL FACILITIES, AND, IN CONNECTION THEREWITH, AUTHORIZING COUNTIES AND MUNICIPALITIES TO ISSUE REVENUE BONDS TO FINANCE PUBLIC AND PRIVATE INSTITUTIONS OF HIGHER EDUCATION AS WELL AS PUBLIC AND PRIVATE ELEMENTARY AND SECONDARY SCHOOLS.



Fiscal Impact Summary

FY 1999/2000

FY 2000/2001

State Revenues

General Fund

 


 

State Expenditures

General Fund

 


 

FTE Position Change

0.0 FTE

0.0 FTE

Other State Impact: None.

Effective Date: July 1, 1999

Appropriation Summary for FY 1999-2000: None.

Local Government Impact: Authorizes counties and municipalities to elect to issue revenue bonds for educational facilities not covered under current law.



Summary of Legislation


            This bill expands county and municipality authority to issue revenue bonds to include facilities for public institutions of higher education, public and private elementary and secondary schools, and schools that are part of charter school districts.


            This bill will not affect state revenue or expenditures. The bill, however, authorizes counties and municipalities to elect to issue additional revenue bonds. Therefore, the bill is assessed as having a local conditional fiscal impact.





Local Government Impact


            Counties and municipalities that elect to issue these bonds may incur additional expenditures for the costs of administering the bond issuance and redemption, and the cost of investment earnings to be paid to bond holders. Additionally, those counties and municipalities may elect to generate new revenue in the form of user fees and charges, or new taxes, to cover the total costs of bond redemption. This fiscal note cannot assess the number of counties and municipalities that will elect to issue these bonds, or the resulting impact on the revenue and expenditures of those local governments.


            Additionally, in the event a county or municipality elects to issue revenue bonds to fund the cost of facilities for private or charter schools, and in the event the private or charter school ceases operations prior to bond redemption, the county or municipality may not have a sufficient revenue stream to cover the cost of bond redemption. The bondholder in those instances assumes full liability and risk for the amount of outstanding bonds.



State Appropriations


            This fiscal note would imply no new state appropriations are required for FY 1999-2000.



Departments Contacted

 

            Education       Higher Education       Local Affairs              Treasury