Committee on Appropriations A/V — 2016

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Jim Terwilliger, Bureau of Finance & Management00:01:57
Report on the Council of Economic Advisors meeting in January00:02:20
Non-Farm Employment is projected to grow 1.2-1.3% in the next few years00:06:38
Non-Farm Income is also projected to grow 4.0-4.5%00:06:53
Net Farm Income is at a record high00:07:27
Machinery purchases in 2015 were down 23%00:07:38
For the first 7 months of FY16 machinery purchases are down another 15%00:07:55
Overall the state forecast has softened with slow, positive growth00:08:13
BFM has 4 months of collections when preparing the Governor's budget00:08:47
In the last 3 months the sales tax revenue has only grown 2.7%00:09:06
Streamlined sales have inpacted the revenue along with declining gas prices00:09:59
BFM Revenue Forecasts00:12:10
Revised General Fund Revenues for FY16 is $1,494,886,11100:13:05
Revised General Fund Revenues for FY17 is $1,488,822,08200:13:18
Sales & Use Tax in FY17 amounts to 61% or $901.5 million00:13:34
First 7 months of FY16 sales & use tax collections were $524.1 million, an increase of 3.51% from the first 7 months last year00:14:36
Estimated Sales Tax Revenue for FY16 is $868,618,419, a 3.83% change00:18:33
Estimated Sales Tax Revenue for FY17 is $901,489,790, a 3.78% change00:18:41
Senator Heineman question - reinvestment payments00:18:59
Lottery: includes instant and on-line tickets 00:20:40
The first $1.4 million of on-line lottery proceeds goes to the general fund00:21:04
Effective July 1, 2015 49.5% of video lottery incomes goes to the general fund00:21:15
Estimated FY16 Lottery revenue is $109,480,50300:21:30
Estimated FY17 Lottery revenue is $111,303,30100:21:34
Senator Heineman question - why a less growth in FY17 over FY1600:21:57
Senator Van Gerpen question - lottery proceeds going to education00:23:35
Contractor's Excise Tax - average increase over 8 years was 2.3%00:25:28
Fund is up 4% year to date00:25:44
Estimated FY16 Contractor's Excise Tax revenue is $103,223,784, a 3.10% increase00:26:27
Estimated FY17 Contractor's Excise Tax revenue is $107,396,509, a 4% growth00:26:34
Insurance Company Tax totals $51.5 million a 3.74% growth for the first 7 months of FY1600:27:10
Estimated FY16 Insurance Company Tax revenue is $83,353,56500:27:31
Estimated FY17 Insurance Company Tax revenue is $87,950,08000:27:37
Representative Hunhoff question - does contractor excise tax include highway funds00:28:12
Unclaimed Property Receipts through January 2016 total $61.5 million00:29:30
Estimated FY16 Unclaimed Property revenue is $56,005,31600:30:49
Estimated FY17 Unclaimed Property revenue is $52,178,600 a decrease of 6.83%00:31:09
Senator Van Gerpen question - historical trend on submitted claims00:31:48
Licenses, Permits & Fees - 70% of the revenue comes from securities fees00:32:45
$32.9 million has been collected in the first 7 months of FY16, an increase of 6.83% over last year00:32:49
Estimated FY16 Licenses, Permits & Fees revenue is $57,307,57800:34:20
Estimated FY17 Licenses, Permits & Fees revenue is $59,369,06700:34:25
Tobacco Taxes00:34:32
The Education Enhancement Tobacco Tax fund was repealed July 1, 201500:34:40
Estimated FY16 Tobacco Taxes net receipts going to the general fund is $56,894,52500:35:16
Estimated FY17 Tobacco Taxes net receipts going to the general fund is $55,885,78500:35:20
Collections through the first 7 months of FY16 totaled $39.0 million, up 11.42%00:35:40
Expect this revenue source to continue to decline00:37:25
Senator Heineman question - unclaimed property decline in FY17 over FY1600:37:35
Bank Franchise Tax -$7.4 million has been collected through the first 7 months of FY16, an increase of 25.47% over last year00:40:50
Estimated FY16 Bank Franchise Tax revenue is $7,793,51600:41:09
Estimated FY17 Bank Franchise Tax revenue is $11,424,177, an increase of 46.59%00:41:48
FY16 Governor's Revised December total is $1,502,295,32400:42:46
FY16 Governor's Revised February total is $1,494,886,111, a $7,409,213 reduction00:43:03
Governor's December Recommended FY17 receipts totaled $1,492,578,43100:44:11
Governor's February Revised FY17 receipts total $1,488,822,082 a reduction of $3,756,34900:44:38
Representative Partridge question - analysis procedure00:45:25
Aaron Olson, Principal Fiscal Analyst with the Legislative Research Council00:49:45
LRC's revised FY16 Sales & Use Tax receipts totals $866,031,204 a reduction of $6,613,37600:51:31
LRC's revised FY16 Lottery receipts is $109,769,277, an increase of $637,90400:51:57
LRC's revised FY16 Contractor's Excise Tax is $102,948,948 a reduction of $1,177,86200:52:17
LRC's revised FY16 Insurance Company Tax is $82,966,473, a reduction of $843,47100:52:40
LRC's revised FY16 Unclaimed Property Receipts is $56,005,317, a reduction of $1,952,24300:53:05
LRC's revised FY16 Bank Franchise Tax Receipts is $7,929,280, an increase of $2,510,76400:53:41
LRC's revised FY16 Estimate is $9,478,541 lower at a grand total of $1,492,813,78200:55:14
Senator Peters requested the 4 bills affecting the revenue and the amount of funding involved00:55:50
LRC's FY17 Sales and Use Tax estimate is $898,942,522, an increase of 3.80%00:56:40
LRC's FY17 Lottery estimate is $111,997,154, an increase of 2.03%00:57:36
LRC's FY17 Contractor's Excise Tax estimate is $107,427,227, an increase of 4.35%00:57:57
LRC's FY17 Insurance Company Tax estimate is $87,396,883, an increase of 5.34%00:58:11
LRC's Unclaimed Property Receipts estimate is $54,129,167, a reduction of 3.35% 00:58:28
LRC's FY17 estimate for ongoing general fund receipts totals $1,490,204,093, $2,374,338 below the Governor's estimate00:59:32
LRC's FY17 estimate includes $53,968,142 in new revenue for ongoing receipts00:59:50
Comparing Legislature Adopted figure to LRC revised FY16 is up $3,118,86501:00:32
LRC's revised FY16 compared to Actual FY15 is up $54,851,00801:00:40
LRC's estimate for FY16 is $2,069,328 less than BFM01:01:58
LRC's estimate for FY17 is $1,382,011 higher than BFM01:02:14
Senator Tidemann complimented Aaron Olson for his work on the revenue numbers01:03:30
Representative Ring echoed Senator Tidemann's comments01:04:30
Committee recessed until 2:00 p.m.01:07:12
Committee reconvened at 2:00 p.m.01:08:29
Senator Peters explained that the Subcommittee did not include any open bills in their revenue estimates01:08:50
Senator Tidemann reported the Subcommittee's FY16 revised recommendation01:09:50
The Subcommittee recommends the FY16 revenue estimate be revised to $1,439,524,23501:09:51
Ongoing Receipts Subcommittee Recommendation: $1,439,524,23501:12:04
Grand Total of Ongoing and One-Time Receipts: $1,496,105,06801:12:10
Senator Tidemann reported the Subcommittee's recommendation for FY17 01:13:26
The Subcommittee recommends a FY17 general fund revenue target of $1,484,401,47801:13:27
Senator Van Gerpen question - comparing Subcommittee and LRC numbers01:14:57
Representative Partridge question - differences in net transfers in01:16:50
Senator Parsley comments on agriculture economy01:17:53
Senator Van Gerpen question - including open bills and net transfers in01:18:48
Senator Heineman comments on consumer spending01:19:28
Senator White comments on revenue safety net01:20:07
Adjourn01:21:45

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