SJR 025 - Fiscal Note

Fiscal Note - SJR 025 - Creates Budget Reserve Fund to provide moneys for financial emergencies and natural disasters

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 1707-01

BILL NO.: Truly Agreed To and Finally Passed SJR 25

SUBJECT: Budget Reserve Fund

TYPE: Original

DATE: April 28, 1999

---

FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
General Revenue		($135,000)
Budget Reserve Fund		$400,000,000
Cash Operating Reserve Fund		($270,000,000)
Budget Stabilization Fund		($130,000,000)
Total Estimated Net Effect on All State Funds	$0	($135,000)	$0

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials from the Governor's Office and the Office of Administration, Division of Budget and Planning assume no fiscal impact as a result of the proposal.

Officials from the State Treasurer's Office (STO) assume this proposal would create a new accounting fund. This would slightly increase the number of accounting transactions that are processed through the accounting system. It would also increase the funds available for investment. The fund will earn its own interest and will be exempt from the biennium transfer. The STO would absorb the costs associated with increased accounting transactions and investments through its current appropriations, thus resulting in a zero fiscal impact on the STO.

Advertisement costs for the proposal would be $3,990 per newspaper column inch for three printings of the text of the proposal, the introduction, title, fiscal note summary, and affidavit. The proposal would be on the ballot for the November 2000 general election.

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
GENERAL REVENUE FUND
Cost to General Revenue Fund
Secretary of State
Newspaper Advertisements		($ 135,000)
BUDGET RESERVE FUND
Transfer In
Transfer from Cash Operating Reserve Fund		$270,000,000
Transfer from Budget Stabilization Fund		$130,000,000
ESTIMATED NET IMPACT ON
BUDGET RESERVE FUND		$400,000,000
FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
(continued)
CASH OPERATING RESERVE FUND
Transfer Out
Transfer to Budget Reserve Fund		($270,000,000)
ESTIMATED NET IMPACT ON
CASH OPERATING RESERVE FUND		($270,000,000)
BUDGET STABILIZATION FUND
Transfer Out
Transfer to Budget Reserve Fund		($130,000,000)
ESTIMATED NET IMPACT ON
BUDGET STABILIZATION FUND		($130,000,000)
FISCAL IMPACT - Local Government	FY 2000	FY 2001	FY 2002
	(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

This proposal would establish a Budget Reserve Fund to provide monies for financial emergencies and natural disasters. The Budget Reserve Fund would replace two existing funds, the Cash Operating Reserve Fund and the Budget Stabilization Fund. The passage of this proposal by the voters would amend Article IV of the Constitution of the State of Missouri.

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

Office of Administration

Division of Budget and Planning

Secretary of State's Office

State Treasurer's Office

Office of the Governor

Cash Receipts Monthly Fund Activity Report

Jeanne Jarrett, CPA

Director

April 28, 1999