Fiscal Note - SB 0278 - St. Louis/Lambert Airport Shall Be Operated By a New Authority
L.R. NO. 0193-04
BILL NO. SB 278
SUBJECT: Airports
TYPE: Original
DATE: February 10, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
General Revenue $0 ($150,000) ($150,000)
Total Estimated
Net Effect on All
State Funds* $0 ($150,000) ($150,000)
* SUBJECT TO APPROPRIATION.
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None $0 $0 $0
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government
FISCAL ANALYSIS
ASSUMPTION
Officials of the Department of Transportation assume that there would be no
fiscal impact to the department or to the state as a result of this proposal,
as they assume that the Missouri-St. Louis Metropolitan Authority is not a
state agency, but is rather a political subdivision.
Officials of the City of St. Louis indicate that a legal interpretation from
the City Counselor's office indicates that the proposal would transfer
responsibility for all bonded indebtedness and other obligations of Lambert
airport to the state, as the Missouri-St. Louis Metropolitan Airport
Authority is a state agency. In addition to outstanding bonded indebtedness
and current construction liabilities estimated at $428,000,000, City
officials indicate that the responsibility for nuclear waste clean-up under
federal Superfund legislation estimated at $325,000,000 would possibly be
transferred to the Authority as well.
Oversight notes that the proposal states that "the authority shall honor all
bonds, debts, outstanding obligation and contracts of any airport or airport
authority affected by this section." However, RSMo 305.520 currently allows
the Missouri-St. Louis Metropolitan Airport Authority to assume and pay, or
guarantee the payment of the principal and interest of any bonds secured by
any airport in the Missouri-St. Louis metropolitan area. It further states
that such an assumption or guaranty does not constitute a debt of the
Authority or the state of Missouri within the meaning of the constitution and
state law. Therefore, Oversight assumes that there would be no impact to the
state as a result of this provision. However, this assumption is also based
on revenues earned by the airport being adequate to service all outstanding
indebtedness and obligations. If airport revenues are not adequate to
service the outstanding debt, then the state could potentially be required to
honor the debt in order to maintain the state's current bond rating.
Oversight also notes that a provision in the proposal would eliminate the
current statutory prohibition against the general assembly appropriating
funds to the Missouri-St. Louis Metropolitan Airport Authority. In a similar
proposal in the prior legislative session, Oversight assumed that the amount
that would likely be appropriated to the Authority would approximate the
amount last appropriated--$158,181 in FY 1983-- inflated to current dollars.
However, based on a vote of the Oversight Subcommittee on March 4, 1996,
costs of ($150,000) subject to appropriation were reflected in the final two
fiscal years presented.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
GENERAL REVENUE FUND
Costs-Transfers to Missouri-St. Louis
Metropolitan Airport Authority
Personal services (2 FTE's and fringe
benefits) $0 ($57,000) ($57,000)
Equipment & expense $0 ($93,000) ($93,000)
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND $0 ($150,000) ($150,000)
--SUBJECT TO APPROPRIATION--
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
0 0 0
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of
this proposal.
DESCRIPTION
The proposal would transfer the operation of any and all international
airports located in Missouri within fifty miles of the City of St. Louis to
the Missouri-St. Louis Metropolitan Airport Authority. The ownership of such
an airport would not change. The Authority would be required to honor all
bonds, debts, outstanding obligations and contracts of any such airport. The
membership of the Authority would also be revised.
The proposal would eliminate the current statutory prohibition against the
general assembly appropriating state moneys to the Missouri-St. Louis
Metropolitan Airport Authority.
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 Transportation
City of St. Louis
This Fiscal Note is not an official copy and should not be quoted or cited.