COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         4301-01

Bill No.:          SB 944

Subject:           Auditor, State; Bonds - General Obligation and Revenue

Type:              Original

Date:               January 28, 2008

Bill Summary:            Modifies the fees the Auditor receives for registering bonds.

FISCAL SUMMARY

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 pages.

☒ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).

☐ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).

FISCAL ANALYSIS

ASSUMPTION

Officials from the Office of Administration and Secretary of State's Office assume no fiscal impact to their agency.

Officials from the State Auditor's Office (SAU) assume using the new method as proposed by this legislation the amount paid for the bonds registered by the auditor's office in FY 07 would have been $86,500. 138 bond issuances were registered from $0 to $10,000,000 for a total of $69,000 (138x$500); 10 bond issuances were registered from $10,000,001 to $35,000,000 for a total of $10,000 (10x$1,000); 5 bond issuances were registered at $35,000,001 or above for a total of $7,500 (5x$1,500). Under the current method the state auditor's office was paid $1,020,782 in FY 07 for bond registration leaving a difference of $934,282. Since the number of bond registrations can vary each year, we also calculated these amounts for FY 06. Based on the same methodology above, the legislation would have resulted in a total fee of $96,000 in FY 06. During that same year (FY 06), the auditor's office was paid $1,231,169 for bond registration resulting in a difference of $1,135,169. While it is difficult to pinpoint an exact cost of this legislation, the General Revenue funding reduction is likely to fall between $934,282 and $1,135,169.

FISCAL IMPACT - Small Business

No direct fiscal impact to small businesses would be expected as a result of this proposal.

FISCAL DESCRIPTION

The proposed legislation changes the fee for the State Auditor to register bonds.

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

Office of Administration

Secretary of State's Office

State Auditor's Office

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                January 28, 2008