NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature. The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.
SPONSOR Wallace DATE TYPED 01/27/99 HB 72
SHORT TITLE Increase Small Cities Assistance SB
ANALYST Eaton
Estimated Revenue Subsequent Recurring Fund
FY99 FY2000 Years Impact or Non-Rec Affected
$ . $ 1,630.1 $ . Recurring Muni GF
$ . $ (1,630.1) $ . Recurring General Fund
(Parenthesis ( ) Indicate Revenue Decreases)
Duplicates/Conflicts with/Companion to/Relates to HB10; SB102
SOURCES OF INFORMATION
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of Bill:
The legislation would amend the Small Cities Assistance Act by increasing the maximum limit a city of 10000 or less persons may receive in assistance from $30,000 to $60,000.
Presently, all cities with populations less than 10000 persons are eligible to receive the same minimum and maximum of $15,000 and $30,000 respectively.
FISCAL IMPLICATIONS
The Small Cities Assistance distribution from the Assistance Fund is financed from 10 percent of the Compensating Tax receipts. Amounts not distributed revert to the general fund. TRD estimates a recurring negative impact on the general fund in the amount of approximately $1.63 million (Reversions) and a recurring positive impact on the Municipal General Funds for the same amount.
Attached is a table provided by TRD, detailing the affected municipalities and the estimated effect of this proposed legislation.
CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP
HB10, SB102
JBE/gm
Attachment