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

SPONSOR Rawson

DATE TYPED 3/8/05

HB

SHORT TITLE Create Farm and Ranch Livestock Fund

SB 1031

ANALYST Hadwiger

APPROPRIATION

(in $000s)

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$50.0

$13.0 Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

($13.0)

($13.0) Recurring

General Fund

$13.0

$13.0 Recurring

Farm and Ranch

Livestock Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Cultural Affairs Department (DCA)

Office of the Attorney General (AG)

SUMMARY

Synopsis of Bill

Senate Bill 1031 would create a Farm and Ranch Livestock Fund (a nonreverting fund in the

State Treasury), consisting of revenue from the sale of livestock, hay and other livestock-related

items not sold through the museum gift shop, as well as appropriations, gifts, and investment in-

come. The money in the fund would be appropriated to and administered by the Farm and Ranch

Heritage Museum Division. This money would be used to purchase livestock, feed, veterinary

care and supplies and other costs related to livestock.

Senate Bill 1031 -- Page 2

Significant Issues

The Cultural Affairs Department (DCA) explained that funds for items described in this bill cur-

rently derive from the Farm and Ranch Museum’s operations. Because of increased operating

costs, the museum’s ability to care and manage its livestock collections is being adversely af-

fected. As the Farm and Ranch Heritage Museum grows and develops, there is a need to in-

crease livestock collections, the greatest attraction for visitors to the museum. However, in order

to stay within budget, it will be increasingly difficult for the museum to offer programs and ex-

hibits relating to livestock. This livestock fund and accompanying appropriation would bring

greater fiscal stability to the museum’s livestock programming, as well as accommodate the ex-

pansion needed and planned for when the sheep/goat and large animals barns are completed.

FISCAL IMPLICATIONS

The appropriation of $50,000 contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of FY06 would not revert to the

general fund. Additionally, about $13,000 would be diverted from the General Fund to the new

Farm and Ranch Livestock Fund.

Continuing Appropriation

This bill creates a new fund and provides for continuing appropriations. The LFC objects to in-

cluding continuing appropriation language in the statutory provisions for newly created funds.

Earmarking reduces the ability of the legislature to establish spending priorities.

DH/rs