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SPONSOR: |
Nava |
DATE TYPED: |
2/4/03 |
HB |
|
||
SHORT TITLE: |
Next Generation Trust Fund |
SB |
228 |
||||
|
ANALYST: |
Smith |
|||||
REVENUE
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
FY03 |
FY04 |
|
|
|
|
(3,720.0) |
|
Recurring |
Tobacco
Settlement Permanent Fund |
|
3,720.0 |
|
Recurring |
Next
Generation Trust Fund |
|
|
(744.0) |
Recurring |
Tobacco
Settlement Program Fund/General Fund |
|
|
|
|
|
(Parenthesis ( ) Indicate Revenue Decreases)
Responses
Received From
DFA
SUMMARY
Synopsis
of Bill
Senate Bill 228
intercepts 10 percent of the revenue received from the tobacco master settlement
agreement and uses it to finance the “next generation trust fund. The new fund will be administered as an
endowment; the income from the fund will be distributed to the youth
development fund. A new board will oversee this fund; it will support
development programs and activities for youth between the ages of 5 and 20.
Twenty percent of this fund could be used for administrative overhead. The fund
is non-reverting. The revenue intercepts begin after July 1, 2003.
FISCAL IMPLICATIONS
The fund will actually
receive cash in the spring of 2004. Since it intercepts prior to receipt by the
tobacco settlement permanent fund,
the tobacco settlement program fund will bear one half of the
loss in FY05. This is ultimately a general fund impact.
This bill creates a
new fund and provides for continuing appropriations. The LFC objects to including continuing appropriation language in
the statutory provisions for newly created funds. Earmarking reduces the ability of the legislature to establish
spending priorities.
CONFLICT
This bill conflicts
with HB244 and SB298 which abolish the tobacco funds and divert all the revenue
to the general fund.
TECHNICAL ISSUES
SS/njw