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F I S C A L   I M P A C T   R E P O R T

 

 

SPONSOR:
Stewart

 

DATE TYPED:

02/04/02

 

HJR

15/aHEC

 

SHORT TITLE:

Permanent School Fund Distribution

 

SB

 

 

 

ANALYST:

Smith

 

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

 

 

 

 

      79,812.7

See Narrative

Recurring

General Fund

 

(79,812.7)

See Narrative

Recurring

Land Grant Permanent Fund

 

(Parenthesis ( ) Indicate Revenue Decreases)

 

SOURCES OF INFORMATION

 

State Investment Council (SIC)

 

     Synopsis of Amendment    

 

The amendment restricts the increased distribution to the common school funds portion of the Land Grant Permanent Fund.

 

SUMMARY

 

     Synopsis of Original Bill

 

The resolution proposes to increase the distribution from the Land Grant Permanent Fund (LGPF) by 1.3 percent to 6.0 percent. Currently, the distribution is set at 4.7 percent.

 

FISCAL IMPLICATIONS

 

The estimate assumes that it would take Congress the balance of FY03 to enact enabling legislation.  In addition, the estimate assumes that the other beneficiaries of the fund would be held harmless over time.

 

SIC has stated that the distribution from the LGPF could be increased by 0.1 percent without eroding the corpus of the fund. As the accompanying graph demonstrates, this proposal would generate

increasingly smaller distributions over time. By the year 2028, the corpus of the LGPF would be sufficiently eroded as to generate less under a 6% distribution plan than it would under current law.

 

SS/njw:ar

Attachment                                                                                                                                                                                                                                                                                                             

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