SJR 023 - Fiscal Note

Fiscal Note - SJR 023 - Establishes the budget stabilization fund

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 2388-01

BILL NO. SJR 23

SUBJECT: Constitutional Amendment: Appropriations

TYPE: Original

DATE: December 31, 1997

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
General Revenue	($146,000)	($0 to $110,000,000)	($0 to $110,000,000)
Budget Stabilization	$0	$0 to $110,000,000	$0 to $115,000,000
Total Estimated Net Effect on All State Funds	($146,000)	$0	$0

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
None
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials of the State Treasurer's Office (STO) and the Department of Revenue (DOR) said the proposal would not affect their offices administratively.

Transfers to the Budget Stabilization Fund could, according to projections in the Governor's budget for FY 1998, be up to approximately $110,000,000 for FY 00 and $115,000,000 in FY 01.

Advertisement costs for the proposal would be $3,990 per newspaper column inch for three publications of the text of the proposal, the introduction, title, fiscal note summary, and affidavit. The proposal would be on the ballot for the November 1998 general election.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
BUDGET STABILIZATION FUND
Income-Transfers from General Revenue Fund	$0	$0	$0
		to	to
		$110,000,000	$115,000,000
NET EFFECT TO BUDGET SAVINGS
FUND	$0	$0	$0
		TO	TO
		$110,000,000	$115,000,000
GENERAL REVENUE FUND
Cost-Secretary of State
Newspaper Advertisements	($146,000)
Cost-Transfers to Budget Stabilization Fund	$0	$0	($0
		to	to
		$110,000,000)	$115,000,000)
NET EFFECT TO GENERAL REVENUE
FUND	($146,000)	($0	($0
		TO	TO
		$110,000,000)	$115,000,000)
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	$0	$0	$0

FISCAL IMPACT - Small Business

No direct fiscal impact to small businesses would be expected as a result of this proposal.

DESCRIPTION

This proposal would create a Budget Stabilization Fund in the state treasury for use in meeting program funding requirements of the state. The legislature could appropriate monies to the Fund until the Fund's balance reached two and one-half percent the net General Revenue Fund collections for the preceding fiscal year.

In years in which the Governor reduced expenditures below appropriations or in which there were a budget need due to a disaster, the General Assembly could, upon request from the Governor and with a two-thirds majority vote of each chamber, appropriate money from the Budget Stabilization Fund to fulfill expenditures authorized by appropriations or to meet budget needs due to the disaster.

Monies (plus interest) spent from the Budget Stabilization Fund would be paid back to that Fund from whatever fund received monies from the Budget Stabilization Fund in one-third increments during each of the next three fiscal years after receipt of Fund monies.

If the balance of monies in and owed to the Budget Stabilization Fund at the end of any fiscal year would be less than two and one-half percent of net General Revenue Fund collections for that fiscal year the difference would stand appropriated and be transferred to the Budget Stabilization Fund by the fifteenth day of the succeeding fiscal year.

DESCRIPTION (continued)

If the balance in the Budget Stabilization Fund at the end of any fiscal year exceeded two and one-half percent of net General Revenue Fund collections for that fiscal year the difference would stand appropriated and be transferred to the General Revenue Fund by the fifteenth day of the succeeding fiscal year.

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

Section 33.285, RSMo, established a Budget Stabilization Fund in the state treasury.

SOURCES OF INFORMATION

Department of Revenue

State Treasurer

Secretary of State

Jeanne Jarrett, CPA

Director

December 31, 1997