j_cdc_2016a_2016-01-06t09:14:00z3 Hearing Summary

Date: 01/06/2016

09:42 AM -- Senate Bill 09-228 Transfers



Mr. Greg Sobetski, Economist, Legislative Council Staff, explained the Senate Bill 09-228 transfers for Capital Construction. Committee members received a copy of Mr. Sobetski's presentation (Attachment G). Mr. Sobetski discussed the statutory transfers to both the Capital Construction Fund (CCF) and the Highway Users Tax Fund (HUTF) under SB 09-228, as well as the trigger mechanisms for the transfers. Mr. Sobetski responded to committee questions regarding the trigger mechanisms and the forecasted transfers for FY 2015-16 through FY 2017-18.



160106 AttachG.pdf





09:59 AM



Ms. Donaldson responded to a committee question regarding how capital construction funding will be impacted if the actual transfers are less than the forecasted transfers. Committee discussion ensued on potential legislation regarding the restoration of funding for capital construction if full transfers under SB 09-228 are not made.





10:03 AM



Mr. Sobetski discussed the forecasted transfers for FY 2016-17 and the forecasting error associated with the transfers. In response to a committee question, he also discussed the history of past statutory transfers. Finally, Mr. Sobetski discussed the enterprise status of the Hospital Provider Fee and how changing its status to an enterprise fund would impact the SB 09-228 transfers for capital construction. Mr. Sobetski responded to committee questions regarding the magnitude of General Fund revenue, the history of the Hospital Provider Fee, and the impact of changing the status of the Hospital Provider Fee on required adjustments to the Referendum C cap.





10:18 AM



Ms. Natalie Mullis, Chief Economist, Legislative Council Staff, came to the table to discuss the timing of the SB 09-228 transfers and the forecasting error associated with the transfer triggers. Committee discussion ensued on forecasting the state budget.