COMMITTEE ON CAPITAL DEVELOPMENT
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01:51 PM -- Revenue Update
Mr. Jason Schrock and Mr. Ron Kirk, both representing Legislative Council Staff, provided an update on revenue available for capital construction for FY 2010-11 from certain cash funds. Mr. Schrock first briefed the committee on the amount of money available for capital from Federal Mineral Lease (FML) revenue. Committee members received a collection of charts providing a forecast of expected FML revenue, and an overview of how these moneys are used to fund state programs (Attachment C). Mr. Schrock discussed the information contained in Attachment C, and explained how FML moneys accrue to certain funds dedicated to capital construction. Ms. Donaldson responded to questions regarding how certificates of participation (COPs) backed by FML revenue will be repaid in future fiscal years.
Discussion continued regarding the ability of the state to meet COP payment obligations with FML revenues in FY 2010-11 and thereafter. Mr. Schrock discussed trends in the energy market that may lead to increased FML revenue. Mr. Kirk provided an update on limited gaming revenue projections. Committee members received a collection of schematics showing projected limited gaming revenue and how the revenue is distributed (Attachment D). Mr. Kirk provided background on the information contained in Attachment D, including the projection for limited gaming revenue in upcoming fiscal years. Discussion ensued regarding what specific fees and taxes are included under the heading "limited gaming revenue." Mr. Kirk responded to questions regarding device fees that are levied on limited gaming operators.
Mr. Kirk continued to brief the committee on the limited gaming revenue forecast, explaining how limited gaming revenue is distributed for use on capital construction projects.