SJR 039 - Fiscal Note

Fiscal Note - SJR 039 - Polit. Subdiv. May Become Indebted by Simple Majority Vote

L.R. NO.  3531-01
BILL NO.  SJR 39
SUBJECT:  Constitutional Amendment: Bonded Indebtedness
TYPE:     Original
DATE:     March 4, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

General Revenue          ($16,700)                  $0                $0

Total Estimated
Net Effect on All
State Funds              ($16,700)                  $0                $0

                   ESTIMATED NET EFFECT ON FEDERAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999


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 State Tax Commission stated that the proposal would not
affect their agency.

Tax Commission officials note that the proposal would increase the aggregate
bond limit of school districts by $2,125,000,000. The actual effects of the
proposal would depend upon actions of school boards, in presenting bond
issues to the voters, and the voters, in approving or not approving proposed
bond issues.

The proposal would make passage of bond issues easier, but would have no
direct effect on any sources of income for municipalities, counties or school
districts.

Advertisement costs for the proposal would be $1,220 per newspaper column
inch for the text of the proposal, the introduction, title, fiscal note
summary, and affidavit.  The proposal would be on the ballot for the November
1996 general election.

FISCAL IMPACT - State Government FY 1997   FY 1998   FY 1999

Cost to General Revenue Fund
  Secretary of State
  Newspaper Advertisements     ($16,700)

FISCAL IMPACT - Local Government FY 1997   FY 1998   FY 1999

                                      $0        $0        $0

DESCRIPTION

This proposal would allow political subdivisions to issue bonds with simple
majority approval of voters. Currently, bond issues require two-thirds or
four-sevenths majorities depending on when they are put on ballots.

This proposal would increase by fifty percent the bonded indebtedness limit
for school districts.

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

Secretary of State
State Tax Commission