ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED	FY 2009	FY 2010	FY 2011
General Revenue	(Unknown expected to exceed $100,000)	(Unknown expected to exceed $100,000)	(Unknown expected to exceed $100,000)
Total Estimated Net Effect on General Revenue Fund	(Unknown expected to exceed $100,000)	(Unknown expected to exceed $100,000)	(Unknown expected to exceed $100,000)

ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED	FY 2009	FY 2010	FY 2011
Aviation Trust Fund	Unknown expected to exceed $100,000	Unknown expected to exceed $100,000	Unknown expected to exceed $100,000
Total Estimated Net Effect on Other State Funds	Unknown expected to exceed $100,000	Unknown expected to exceed $100,000	Unknown expected to exceed $100,000

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2009	FY 2010	FY 2011
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)
FUND AFFECTED	FY 2009	FY 2010	FY 2011
Total Estimated Net Effect on FTE	0	0	0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2009	FY 2010	FY 2011
Local Government	$0	$0	$0

FY 2005	$9.2 million
FY 2006	$6.0 million
FY 2007	$7.5 million

Assuming revenue collections again reach the fiscal year 2005 level listed above; eliminating the cap could result in up to $3.2 million less being available to deposit into general revenue annually. This proposal essentially seeks to move money currently being deposited into the General Revenue fund to the Aviation Trust Fund. Both of these funds were originally established and currently reside within the State Treasury, so any movement between these funds will not impact total state revenue or the provisions of 18(e).

 

Officials at the Missouri Department of Transportation assume that with an effective date of January 1, 2009 and based on historic receipts of jet fuel sales tax receipts and growth rates from the US Department of Energy and some carriers requesting refunds of overpayments that the Aviation Fund would have an increase of $1,669,524 in FY 2009, $1,917,913 in FY 2010, $1,846,868 in FY 2011.

 

Officials at the Office of the State Treasurer and the Department of Revenue assume that there is no fiscal impact from this proposal.

 

Oversight assumes this proposal is removing the cap in the aviation trust fund. General Revenue could lose any money collected over the preexisting cap while the Aviation Trust Fund could retain all the additional funds. For the purposes of this note the loss to General Revenue and the gain to the Aviation Trust Fund is shown as "unknown expected to exceed $100,000" based on the past collections over the preexisting cap in the fund.

 

 

FISCAL IMPACT - State Government	FY 2009 (10 Mo.)	FY 2010	FY 2011
GENERAL REVENUE
Loss - General Revenue
Aviation jet fuel tax	(Unknown expected to exceed $100,000)	(Unknown expected to exceed $100,000)	(Unknown expected to exceed $100,000)
ESTIMATED NET EFFECT ON
GENERAL REVENUE	(Unknown expected to exceed $100,000)	(Unknown expected to exceed $100,000)	(Unknown expected to exceed $100,000)
AVIATION TRUST FUND
Revenue - Department of Transportation
Aviation jet fuel tax	Unknown expected to exceed $100,000	Unknown expected to exceed $100,000	Unknown expected to exceed $100,000
ESTIMATED NET EFFECT ON
AVIATION TRUST FUND	Unknown expected to exceed $100,000	Unknown expected to exceed $100,000	Unknown expected to exceed $100,000

 

 

FISCAL IMPACT - Local Government	FY 2009 (10 Mo.)	FY 2010	FY 2011
	$0	$0	$0

 

FISCAL IMPACT - Small Business

 

Having an adequate local airport is an important part of a community's economic development package used to attract and retain business and industry.

 

FISCAL DESCRIPTION

 

This bill removes the $6 million cap on the Aviation Trust Fund and specifies that if $6 million is deposited into the fund in the previous calendar year, $2 million may be expended annually to study or promote expanded or intrastate scheduled commercial service or to assist airport sponsors participating in a federally funded air service program supporting intrastate scheduled commercial service.

 

The bill also allows up to $500,000 in the fund to be used annually to meet the local match requirement under a federal cost-sharing program for air traffic control towers. Any expenditure under this program will require a non-federal match, with a ratio of 50% state and 50% local funds. Expenditures on any individual control tower will be capped at $100,000 per year.

 

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

 

Missouri Department of Transportation

Office of the State Treasurer

Budget and Planning

Department of Revenue

 

 

 

 

 

 

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                February 15, 2008