Date: 06/22/2009
Final
Update About Moneys Available for Capital Projects
COMMITTEE ON CAPITAL DEVELOPMENT
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10:14 AM -- Update About Moneys Available for Capital Projects
The committee was called to order. A quorum was present. Ms. Lisa Esgar, Deputy Director, Governor's Office of State Planning and Budgeting (OSPB), gave the committee an overview of the OSPB June 22, 2009, economic forecast, as it relates to future funding for capital construction and controlled maintenance. Committee members received an excerpt of OSPB's June 2009 Revenue Forecast (Attachment A). Ms. Esgar began her presentation by discussing the projected General Fund transfer that will be available for capital construction and controlled maintenance projects for FY 2010-11 and FY 2011-12. Ms. Esgar talked the committee through the table on the first page of Attachment A and outlined the projects that received funding for FY 2009-10. Ms. Esgar emphasized the importance of funding Level 1 controlled maintenance projects in order to keep the state's current inventory of General Fund buildings up-to-date. Ms. Esgar addressed a question about the projected General Fund transfer for Level 1 controlled maintenance projects for FY 2010-11 and FY 2011-12. In response to a question about the Department of Revenue, Colorado Integrated Tax Architecture (CITA) project, Ms. Esgar clarified OSPB's recommendation for ongoing funding for CITA, and explained that the Department of Revenue will be required to request funding for each year of the project.
10:24 AM
Ms. Esgar answered questions about possible cost savings that may be realized from Senate Bill 09-280, which makes cuts to 61 prior years' projects in order to address the budgetary shortfall for FY 2008-09 and FY 2009-10. Ms. Esgar reminded the committee that the OSPB has not identified any inflation costs savings for previously appropriated projects. She then explained that federal mineral lease (FML) revenue is a very volatile fund source, particularly because of fluctuating demand for and prices of natural gas. She directed the committee to page 3 of Attachment A, which is a comparison of the amount of FML revenue projected to be available in various economic forecasts for certificates of participation (COP) payments for projects authorized by Senate Bill 08-233. Ms. Esgar also reviewed the table at the bottom of page 4 of Attachment A. Ms. Esgar explained that an appropriation from the Capital Construction Fund to the Higher Education FML Revenues Fund authorized by Senate Bill 09-280, ensured sufficient revenue to make both the FY 2008-09 and FY 2009-10 COP payment for the higher education projects authorized by Senate Bill 08-233.