OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http: //www.cga.ct.gov/ofa

HB-7432

AN ACT CONCERNING ELECTRICITY AND ENERGY EFFICIENCY.

AMENDMENT

LCO No.: 8810

House Calendar No.: 702

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 07

FY 08

Department of Revenue Services

TF - Revenue Impact

See Below

See Below

Department of Revenue Services

GF - Revenue Loss

up to 124.7 million

None

Note: TF=Transportation Fund; GF=General Fund

Municipal Impact: None

Explanation

The amendment: (1) suspends the motor fuels tax on gasoline and diesel fuel upon passage through 9/3/07 and (2) transfers up to $124.7 million1 from the resources of the General Fund to the Special Transportation Fund. The General Fund fiscal impact in FY 07 is a revenue loss of up to $124.7 million1. There is no fiscal impact to the Special Transportation Fund in FY 07 and FY 08 because the revenue loss from the suspension of the motor fuels tax is offset by the revenue transfer from the General Fund.

The table below shows the impact to the Special Transportation Fund by fiscal year.

Description

FY 07

FY 08

 

($-millions)

Suspend the motor fuels tax upon passage through 9/3/07

Up to ($41.0) 1

($83.7)

Transfer resources from the General Fund to the Special Transportation Fund

Up to 41.01

83.7

Net Impact

None

None

The FY 07 General Fund surplus is projected at $846.8 million. However, the amendment transfers up to $124.7 million1 from the resources of the General Fund in FY 07, which will reduce the projected surplus to $722.1 million.

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose.

1 The fiscal impact will depend on the number of days in June the motor fuels tax is suspended.