HB1644 (2006) Detail

Relative to funding the fuel assistance program in the office of energy and planning and requiring a one-time reduction in the rate of the statewide enhanced education tax and making appropriations therefor.


HB 1644-FN – AS INTRODUCED

2006 SESSION

06-2200

09/10

HOUSE BILL 1644-FN

AN ACT relative to funding the fuel assistance program in the office of energy and planning and requiring a one-time reduction in the rate of the statewide enhanced education tax and making appropriations therefor.

SPONSORS: Rep. Rowe, Hills 6; Rep. Carew, Hills 1; Rep. Field, Merr 7; Rep. Putnam, Rock 8

COMMITTEE: Finance

ANALYSIS

This bill makes appropriations from the undesignated general fund surplus for the fiscal year ending June 30, 2005 to:

I. The office of energy and planning for the purpose of funding the fuel assistance program.

II. The department of revenue administration for the purpose of a reduction of the rate of the statewide enhanced education tax for the 2007 tax year.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

06-2200

09/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Six

AN ACT relative to funding the fuel assistance program in the office of energy and planning and requiring a one-time reduction in the rate of the statewide enhanced education tax and making appropriations therefor.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Appropriations; Office of Energy and State Planning; Department of Revenue Administration.

I. The sum of $15,000,000 of undesignated general fund surplus for the fiscal year ending June 30, 2005 is hereby appropriated for the biennium ending June 30, 2007 to the office of energy and planning for the purpose of funding the fuel assistance program. This appropriation is in addition to any other funds appropriated to the office of energy and planning. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

II. The sum of the undesignated general fund surplus for the fiscal year ending June 30, 2005 in excess of $45,500,000 shall be appropriated for the biennium ending June 30, 2007 to the department of revenue administration, for the purpose of reducing the rate of the statewide enhanced education tax for the 2007 tax year. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

2 One-time Rate Reduction of Statewide Enhanced Education Tax. Notwithstanding RSA 76:3, the commissioner of the department of revenue administration shall reduce the rate of the enhanced education property tax for the 2007 tax year to reflect the amount appropriated to the department of revenue administration under section 1 of this act.

3 Effective Date. This act shall take effect upon its passage.

LBAO

06-2200

11/28/05

HB 1644-FN - FISCAL NOTE

AN ACT relative to funding the fuel assistance program in the office of energy and planning and requiring a one-time reduction in the rate of the statewide enhanced education tax and making appropriations therefor.

FISCAL IMPACT:

      The Office of Energy and Planning indicates this bill will increase state expenditures by $7,500,000 in FY 2006 and FY 2007. The Department of Revenue Administration indicates this bill will increase state general fund expenditures by an indeterminable amount in FY 2007. There is no fiscal impact on state, county and local expenditures or county and local revenue.

      This bill appropriates $15,000,000 from the general fund to the Office of Energy and Planning in FY 2006 for the purpose of funding the fuel assistance program.

      This bill appropriates the sum of undesignated general fund surplus for FY 2005 in excess of $45,500,000 from the general fund to the Department of Revenue Administration in FY 2007 for the purpose of reducing the rate of the statewide enhanced education tax for the 2007 tax year.

METHODOLOGY:

    The Office of Energy and Planning assumes that state expenditures to fund fuel assistance will increase by $15,000,000 over the biennium, with expenditures split evenly, $7,500,000 in FY 2006 and $7,500,000 in FY 2007.

    The Department of Revenue Administration states that, based on the FY 2005 unaudited financial statements, the undesignated general fund surplus totaled $82,202,000. This surplus total would provide an appropriation of $36,702,000 ($82,202,000 - $45,500,000) to be appropriated to the education trust fund for the purpose of reducing the rate of the statewide enhanced education tax for the 2007 tax year. The Department estimates that a rate reduction of approximately 25 cents would offset this appropriation, lowering the enhanced education property tax to $3.08 in FY 2007. The Department states that this tax rate change can be administered within their existing budget.