Business ready communities.

03LSO-0569.L1

FISCAL NOTE (HB0264)

This bill contains an appropriation of $25,000,000 from the BUDGET RESERVE ACCOUNT to the Permanent Wyoming Mineral Trust Fund.

This bill contains an appropriation of $5,000,000 from the GENERAL FUND to the proposed business ready community account.

	FY 2004	FY 2005	FY 2006
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue Increase (Decrease):
BUSINESS READY COMM ACCT	1,312,500	7,500,000	10,000,000
SCHOOL CAP CON ACCOUNT	0	(6,187,500)	(8,687,500)

Source of revenue increase (decrease):

Redistribution of coal lease bonus revenues from School CapCon Account to the proposed business ready community account (BRCA)($7.5 million less General Fund transfer to BRCA in FY05, $10 million less General Fund transfer to BRCA in FY06).

Transfer from General Fund to the proposed BRCA of $25 million times the previous fiscal year average annual rate of return from the Permanent Wyoming Mineral Trust Fund (PWMTF).

Assumptions:

Coal bonus revenue estimates for FY05 and FY06 based on January 2003 CREG projections. Bill also proposes distribution of coal bonus revenues to BRCA of $12.5 million less General Fund transfer to BRCA in FY07, and $15 million per year less General Fund transfer to BRCA in FY08-FY14.

Average annual rate of return from PWMTF estimated at 5.25 percent.

Funds in the proposed BRCA are continuously appropriated to the Wyoming Business Council to be used only for grants authorized under the proposed Wyoming Business ready community program.

Assume no decrease in General Fund revenue because the transfer from the General Fund to the proposed BRCA ($25 million x annual rate of return from the PWMTF) is offset by the $25 million appropriation from the Budget Reserve Account to the PWMTF.

Prepared by: Dean Temte, LSO Phone: 777-7881