COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 2775-09
BILL NO.: HCS for SS for SB 549
SUBJECT: Tobacco Settlement Trust Fund
TYPE: Original
DATE: April 11, 2000
FISCAL SUMMARY
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Missouri Settlement Trust | $135,420,621 | $162,447,798 | $164,044,888 |
| General Revenue* | ($135,420,621) | ($162,447,798) | ($164,044,888) |
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
*Foregone revenue represents money deposited in Missouri Settlement Trust Fund which would otherwise have been deposited into the General Revenue Fund.
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 5 pages.
ASSUMPTION
Officials of the State Treasurer, in responses to similar proposals, stated that the proposal would establish a new accounting fund and would increase the number of transactions processed through the accounting system. It would also increase the amount of funds available for investment. The Treasurer's office would carry out its duties under this proposal with existing resources.
Officials of the Office of Administration's Division of Accounting, in responses to similar proposals, stated that they would establish an Internet website with a link from the Division of Accounting home page to display the information required by the proposal. This would be done with existing resources.
Officials of the Department of Health, the Department of Mental Health, the Department of Revenue, the Department of Elementary and Secondary Education, the Department of Economic Development, the Department of Higher Education, the University of Missouri and the Department of Social Services stated the proposal would not directly affect their agencies.
Oversight assumes that settlement funds would be deposited into the General Revenue Fund in the absence of this proposal.
Estimates of amounts Missouri will receive from the Master Settlement Agreement are ranged from estimates made by the Office of Administration - Division of Budget and Planning to estimates published by the National Governors Association (NGA).
Budget and Planning's estimates assume upward inflation adjustments of three percent (3%) to each years annual payment and downward volume adjustments of 10% in 2000, 12.7% in 2001, 14.9% in 2002, and 16.6% in 2003. These volume adjustment assumptions are those recommended by Federal Funds Information for States and are based on estimates developed by Standard and Poors.
The NGA figures do not include any offsets, reductions or adjustments; therefore, Oversight has included a 3% per year inflation adjustment.
For purposes of simplifying the fiscal note, Oversight has used the estimates of the Office of Budget and Planning. Please see the attachment for complete schedules of ranges of estimates.
FISCAL IMPACT - State Government FY 2001 FY 2002 FY 2003
MISSOURI SETTLEMENT TRUST FUND
Income - Tobacco Settlement ($135,420,621) ($162,447,798) ($164,044,888)
GENERAL REVENUE FUND
Foregone Revenue - Tobacco Settlement ($135,420,621) ($162,447,798) ($164,044,888)
FISCAL IMPACT - Local Government FY 2001 FY 2002 FY 2003
$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 the "Missouri Settlement Trust Fund". The State Treasurer would deposit all moneys received by the state of Missouri from awards or settlements into the Fund. Monies in the Fund would not revert to general revenue at the end of the biennium.
The General Assembly would not appropriate moneys deposited into the Fund until a vote on a constitutional amendment or January 3, 2001, whichever occurs sooner.
The Commissioner of Administration would maintain data on receipts to the Fund. The Commissioner would update the data at least quarterly and would make the data available on the Internet.
This proposal would also adopt sections 200 through 211 of Chapter 18 of the United States Code (Patent Rights in Inventions Made with Federal Assistance) as Missouri law, with references to "the State of Missouri" replacing references to "the United States" where appropriate.
This proposal contains an emergency clause.
DESCRIPTION (continued)
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. The proposal would not directly affect Total State Revenues.
SOURCES OF INFORMATION
Department of Elementary and Secondary Education
Department of Economic Development
Department of Higher Education
Department of Mental Health
Department of Health
Department of Revenue
Department of Social Services
Office of Administration
State Treasurer
University of Missouri
Jeanne Jarrett, CPA
Director
April 11, 2000
| Year | OA - B&P | Governors | 3% CPI Increase | ||
| Association | |||||
| 1998 | $54,590,426 | $54,590,426 | $54,590,426 | ||
| 1999 | $0 | $0 | $0 | ||
| 2000 | $129,451,392 | $145,841,736 | $150,216,988 | ||
| 2001 | $135,420,621 | $157,485,647 | $167,076,523 | ||
| 2002 | $162,447,798 | $189,094,295 | $206,623,336 | ||
| 2003 | $164,044,888 | $190,883,868 | $214,820,705 | ||
| 2004 | $143,399,390 | $159,313,061 | $184,659,769 | ||
| 2005 | $144,834,156 | $159,313,061 | $190,203,864 | ||
| 2006 | $146,278,082 | $159,313,061 | $195,907,271 | ||
| 2007 | $147,740,792 | $159,313,061 | $201,785,923 | ||
| 2008 | $164,693,218 | $175,833,051 | $181,916,875 | ||
| 2009 | $166,353,707 | $175,833,051 | $236,266,871 | ||
| 2010 | $168,003,541 | $175,833,051 | $243,352,943 | ||
| 2011 | $169,675,393 | $175,833,051 | $250,667,598 | ||
| 2012 | $171,378,869 | $175,833,051 | $261,340,664 | ||
| 2013 | $173,100,158 | $175,833,051 | $265,929,906 | ||
| 2014 | $174,833,563 | $175,833,051 | $273,895,144 | ||
| 2015 | $176,602,091 | $175,833,051 | $282,124,130 | ||
| 2016 | $178,364,609 | $175,833,051 | $290,581,700 | ||
| 2017 | $180,168,255 | $175,833,051 | $299,303,019 | ||
| 2018 | $188,424,839 | $182,059,072 | $319,204,171 | ||
| 2019 | $190,339,585 | $182,059,072 | $328,780,478 | ||
| 2020 | $192,257,965 | $182,059,072 | $338,629,874 | ||
| 2021 | $194,207,025 | $182,059,072 | $348,788,770 | ||
| 2022 | $196,152,138 | $182,059,072 | $359,257,167 | ||
| 2023 | $198,156,125 | $182,059,072 | $370,035,064 | ||
| 2024 | $200,180,829 | $182,059,072 | $381,140,667 | ||
| 2025 | $202,222,663 | $182,059,072 | $392,573,977 | ||
| Total | $4,513,322,118 | $4,589,951,302 | $6,989,673,821 |