SB 0782 - Fiscal Note

Fiscal Note - SB 0782 - Arts Trust Fund Money Not Placed in General Revenue

L.R. NO.  2996-01
BILL NO.  SB 782 with HCA 1
SUBJECT:  Taxation, Amusement, Boards
TYPE:     Original
DATE:     April 24, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

General Revenue                 $0        ($8,000,000)                $0

Missouri Arts
Council Trust                   $0          $8,000,000                $0

Total Estimated
Net Effect on All
State Funds                     $0                  $0                $0


                   ESTIMATED NET EFFECT ON FEDERAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

None

Total Estimated
Net Effect on All
Federal Funds                   $0                  $0                $0


                    ESTIMATED NET EFFECT ON LOCAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

Local Government                $0                  $0                $0


                              FISCAL ANALYSIS

ASSUMPTION

Officials of the Department of Revenue and the Office of Administration
assume this proposal would not fiscally impact their agencies.

Officials of the Department of Economic Development (DED) assume this
proposal would allow any unexpended balances in the Missouri Arts Council
Trust Fund to remain in the Trust rather than be transferred to General
Revenue at the end of each biennium. DED based their estimates on FY96 and
FY97 transfers of $2,000,000 to the Trust and $110,000 in annual
appropriations out of the Trust. An interest rate of 6 percent was assumed.

Based on the Governor's recommendations for the FY96 supplemental and FY97
budget for DED, Oversight assumes the fiscal impact of this legislation on
the General Revenue Fund and the Missouri Arts Council Trust Fund would be
approximately $8.0 million. No interest rate was assumed.

Oversight assumes this proposal would allow any unexpended balances in the
Missouri Humanities Council Trust Fund to remain in the Trust rather than to
be transferred to General Revenue at the end of each biennium. However, the
General Assembly to date has not appropriated funds to the Missouri
Humanities Council (established by TAFP HS for HB 194, signed 7/5/95).
Therefore, for purposes of this fiscal note, Oversight assumes this portion
of the legislation has no impact to state funds.

FISCAL IMPACT - State Government          FY 1997      FY 1998     FY 1999
                                         (10 Mo.)
Loss to General Revenue Fund
   Transfer from Missouri Arts Council Trust
    Fund Discontinued                          $0 ($8,000,000)          $0

ESTIMATED NET EFFECT TO
GENERAL REVENUE FUND                           $0 ($8,000,000)          $0

MISSOURI ARTS COUNCIL TRUST FUND

Savings to Missouri Arts Council Trust Fund
   Transfer to General Revenue discontinued    $0   $8,000,000          $0

ESTIMATED NET EFFECT TO MISSOURI
ARTS COUNCIL TRUST FUND                        $0   $8,000,000          $0


FISCAL IMPACT  - Local Government         FY 1997      FY 1998     FY 1999
                                         (10 Mo.)

                                                0            0           0

DESCRIPTION

This bill requires that any unexpended money in the Missouri Arts Council
Trust Fund or the Missouri Humanities Council Trust Fund at the end of the
biennium will not be transferred and placed to the credit of the general
revenue fund.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.


SOURCES OF INFORMATION

Department of Revenue
Department of Economic Development
Office of Administration