September 15th, 2005
OFM Fiscal Impact Statement for I-900
The Office of Fiscal Management has released their fiscal impact statement for Initiative 900. It is as follows:
Fiscal Impact Statement for Initiative 900
Initiative 900 would reduce state sales-and-use tax revenue flowing to the state fund that finances general government services. It directs that 0.16 percent of this revenue go to a new Performance Audits of Government Account to pay for performance audits of state and local governments. An estimated $17 million would be deposited in the account instead of the state General Fund in the 2005-07 Biennium, and an estimated $25 million would be deposited in the 2007-09 Biennium. Tax revenue in the General Fund pays for state services including education, social, health, and environmental services, and general government activities
Assumptions for Fiscal Analysis of Initiative 900
The estimates of the amount of sales-and-use tax revenue that would be deposited in the Performance Audits of Government Account is determined by applying the 0.16 percent diversion rate specified in the initiative to the sales-and-use tax collections projected in the June 2005 revenue forecast produced by the state Economic and Revenue Forecast Council.
The General Fund reduction of $17 million estimated for the 2005-07 Biennium assumes an effective date for the initiative of Dec. 8, 2005. The General Fund reduction of $25 million that is estimated for the 2007-09 Biennium reflects the fiscal impact of the initiative over a full, 24-month biennium.
Permanent Defense will be making the OFM’s fiscal impact statement available as a PDF from the Release Center.