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 |
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State Expenditures General Fund |
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FTE Position Change |
0.0 FTE |
0.0 FTE |
Other State Impact: None. |
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Effective Date: July 1, 1999 |
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Appropriation Summary for FY 1999-2000: None. |
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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