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Tobacco securitization. |
03LSO-0217.C1 |
FISCAL NOTE (HB0178)
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FY 2005 |
FY 2006 |
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NON-ADMINISTRATIVE IMPACT |
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Anticipated Revenue Increase (Decrease): |
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SCHOOL CAP CON ACCOUNT |
152,164,000 |
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LOCAL GOVT. CAPCON |
65,836,000 |
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PWMTF TOBACCO ACCT |
58,000,000 |
58,000,000 |
58,000,000 |
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SCHOOL CAP CON ACCOUNT |
(40,484,000) |
(40,484,000) |
(40,484,000) |
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LOCAL GOVT. CAPCON |
(17,516,000) |
(17,516,000) |
(17,516,000) |
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WYO TOBACCO SETTLE INCOME |
3,000,000 |
6,000,000 |
9,000,000 |
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SCHOOL CAP CON ACCOUNT |
11,168,000 |
11,168,000 |
11,168,000 |
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LOCAL GOVT. CAPCON |
4,832,000 |
4,832,000 |
4,832,000 |
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GENERAL FUND |
840,000 |
840,000 |
840,000 |
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WYO TOBACCO SETTLE INCOME |
(16,840,000) |
(16,840,000) |
(16,840,000) |
Source of revenue increases and (decreases):
Tobacco securitization bond proceeds; redistribution of severance tax and FMR revenues from school capcon and local government capcon to proposed Permanent Wyoming Mineral Trust Fund (PWMTF) Tobacco Account for FY04-FY06; redistribution of tobacco settlement revenues to school capcon and local government capcon accounts for FY04-FY06; interest revenue from proposed PWMTF Tobacco Account.
Assumptions:
¨ Assume bond proceeds of $218 million available for immediate construction projects.
¨ Assume liability for $218 million in bond repayments due after FY06.
¨ Current Tobacco Trust Fund balance of approximately $40 million would be transferred to proposed PWMTF Tobacco Account.
¨ Assume $174 million in FMR’s and severance taxes redistributed from school capcon and local government capcon to proposed PWMTF Tobacco Account over three years ($58 million per year, FY04-FY06).
¨ Interest earned on proposed PWMTF Tobacco Account will be distributed to the General Fund. Upon distribution to the General Fund, the Treasurer will distribute an equal amount to the Tobacco Trust Income Account.
¨ Assume a 5.25% interest rate on $58 million per year.
¨ Assume tobacco settlement revenues of $16 million per year redistributed 69.8% to school capcon and 30.2% to local government capcon for FY04-FY06. Interest on $16 million ($840,000) currently going to Tobacco Settlement Income Account would go to General Fund.
¨ There would be a swap of FMR’s & severance taxes now going to the school capcon and the local government capcon with tobacco settlement funds for FY04-FY06.
Prepared by: Dean Temte, LSO Phone: 777-7881
(Information provided by Sharon Garland, Treasurer’s Office;
phone 777-7475)
This bill has administrative impact that appears to increase (or decrease) duties or responsibilities of one or more state agencies and may impact agency spending or staffing requirements. As introduced, the bill does not modify any state agency budget or current personnel authorizations. The following state agencies may be affected administratively:
Treasurer’s Office