Bill Summary: This proposal removes cap on amount of aviation generated revenue that may be deposited in state aviation trust fund and expands purposes for which moneys in the aviation trust fund may be used.

☒ 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).

Officials at the Division of Budget and Planning (BAP) assume the proposed legislation should not result in additional costs or savings to BAP. This proposal seeks to eliminate the $6 million cap on the amount of revenue that can be deposited into the Aviation Trust Fund. Currently, any revenue above the $6 million cap on the fund is deposited into the General Revenue Fund (GR). Total Aviation Trust Fund (ATF) revenue collections for fiscal year 2005 through fiscal year 2007 are listed in the chart below:

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 FY09, $1,917,913 in FY10, $1,846,868 in FY11.

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 Fund could retain all the additional funds. For the purposes of this note the loss to General Revenue and the gain to the Aviation 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 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 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

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 act removes the cap on the amount of jet fuels sales taxes that can be deposited into the State Aviation Trust Fund. Under current law, only $6 million generated from jet fuel sales taxes may deposited to the credit of the Aviation Trust Fund (Section 144.805).

This act allows $2 million from the Aviation Trust Fund to be used for the study or promotion of expanded scheduled commercial service, for the study or promotion of intrastate scheduled commercial service, or to assist airport sponsors participating in a federally funded air service program supporting intrastate scheduled commercial service. The act further requires that there must have been at least $6 million deposited in the fund in the previous calendar year before aviation trust funds can be utilized for these purposes (Section 305.230).

This act allows moneys in the Aviation Trust Fund to be used to assist communities to match federal air traffic control tower cost-share program grants. Under the act, up to $500,000 per year may be used on a ratio of 50% state/50% local to meet the non-federal match requirement. No more than $100,000 per year may be used for any individual air traffic control tower (section 305.230).

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 the State Treasurer

Budget and Planning

Department of Revenue

Missouri Department of Transportation

Mickey Wilson, CPA

Director

February 13, 2008

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 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

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 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 FULL TIME EQUIVALENT (FTE)
FUND AFFECTED	FY 2009	FY 2010	FY 2011


Total Estimated Net Effect on FTE	0	0	0