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SPONSOR: |
|
DATE
TYPED: |
|
HB |
244 |
||
SHORT
TITLE: |
Abolish Tobacco Settlement Permanent Fund |
SB |
|
||||
|
ANALYST: |
Smith |
|||||
REVENUE
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
FY03 |
FY04 |
|
|
|
42,900.0 |
37,200.0 |
|
Recurring |
General
Fund |
6,550.0 |
|
|
Nonrecurring |
General
Fund |
57,000.0 |
|
|
Nonrecurring |
Operating Reserve |
(57,000.0) |
|
|
Nonrecurring |
Tobacco Settlement Permanent Fund |
(42,900.0) |
(37,200.0) |
|
Recurring |
Tobacco
Settlement Permanent Fund |
(6,550.0) |
|
|
Nonrecurring |
Tobacco
Settlement Program Fund |
(Parenthesis ( ) Indicate Revenue Decreases)
Duplicates Senate Bill 298
Responses
Received From
Department
of Finance and Administration
SUMMARY
Synopsis
of Bill
House Bill
244 eliminates the tobacco settlement permanent and program funds and transfers
all balances to the general fund. All
future tobacco settlement payments will be deposited in the general fund. The balance in the tobacco settlement
permanent fund will be deposited in the general fund operating reserve.
Significant Issues
This is a critical component of the Executive's budget
recommendation.
FISCAL
IMPLICATIONS
The LFC disagrees with the Executive’s scoring
of the unappropriated balance of the tobacco settlement
program fund as recurring FY03 revenue. Furthermore, policy makers should be
aware that half of the FY03 revenue would otherwise be programmed to support
FY04 programs. The implication here is
that half of the FY04 revenue will have to support existing programs.
Recent stock market performance has put the cash
value of the permanent fund in doubt; the liquidated value of the fund may be
less than the $57 million.
TECHNICAL
ISSUES
The State Investment Council has noted that it could
take a couple of weeks to liquidate the portfolio in an orderly manner. It might be useful to amend the bill to
include an effective date prior to passage.
SS/sb