Impact assistance for development projects.

03LSO-0190.L1

FISCAL NOTE (HB0282)

The fiscal impact is indeterminable.

Source of potential revenue decrease: Investment income

Assumptions:

The amount of revenue decrease is indeterminable as it is not known how much will be loaned out each year. However, there is a potential investment return of 5.25% on any amount that is loaned out. Assuming the entire $100,000,000 is loaned out at 0% interest, there would be an investment income loss of $5,250,000 each year.

This bill increases the limitation on legislatively designated investments (LDI’s) to $600,000,000. This statute currently indicates that total investment of permanent funds in LDI’s shall not exceed $500,000,000. The total statutory allotment of all LDI’s listed in current statutes totals $647,950,000. The total outstanding investment of LDI’s currently in use at the end of December 2002 totaled just under $200 million. The State Treasurer has recommended removing from statute two of the LDI’s (one time funding items - Natrona Co. Water Treatment for $23 million and Green River/Rock Springs Water Treatment Plant for $24 million) that are totally repaid and also a $10 million mortgage loan program that has not been used in some time which would bring the current total statutory allotment down to $590,950,000. This would be prior to this additional $100,000,000 LDI.

Although the Treasurer’s Office would not require additional personnel or expect large administrative expenditures as a result of this legislation, the bill does require additional administrative and accounting duties for existing staff.

The addition of new section 35-12-201 to review loan applications would create an additional fiscal cost (Administrative Impact) on the Industrial Siting Council (ISC), since the ISC would not be reimbursed for this work as they normally are under the existing act. However, this fiscal impact is hard to determine (estimate maybe two to three applications per year), and current ISC resources would be adequate to cover this workload.

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

(information provided by Sharon Garland, Treasurer’s Office; phone 777-7475: James S. Uzzell, ISC; phone 777-7198)