Fiscal Note on Species Conservation Trust Fund

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Fiscal Note January 3, 2007 Department of Natural Resources comments on: LLS 07-0459.01- Species Conservation Trust Fund Overview The bill provides for the following related to the state's Species Conservation Trust Fund (SCTF) (24-33-111, C.R.S.): In FY 07-08 - allows the DNR Executive Director to obligate & spend: 0 $6,000,000 from the SCTF capital account for the Three State Species Recovery Agreement on the Platte River; 0 $400,000 for sagebrush/short grass prairie/acquatic species and $80,000 for SLV Willow Flycatcher conservation plan - both from the SCTF operation and maintenance account On or after July 1, 2008 - transfer $7,000,000 from the Operational Account of the Severance Tax Trust Fund into the capital account of the SCTF. On or after July 1, 2009 - transfer $6,000,000 from the Operational Account of the Severance Tax Trust Fund into the capital account of the SCTF. Impacts Capital Account - Insufficient Funds. Although the intent of the bill greatly assists the State and the Department in addressing projects on the species conservation eligibility list, there appears to be a problem with the funding for FY 2007-08. Specifically, the draft bill allows $6,000,000 to be obligated and spent out of the SCTF capital account. As of November 30, 2006, the balance in the capital account available for new projects, however, was only $1,446,820. With estimated interest earned on the balance for the remainder of FY 06-07, the estimated available balance in the capital account on July 1, 2007 will be approximately $1,595,000. This means that the available funds in the SCTF capital account will be insufficient to fund the $6,000,000 authorized through this bill --- shortfall =$6,000,000 -$1,595,000 = $4,405, 000. The Department recommends that this shortfall be rectified by amending page 4, line 8 of the draft bill to add an additional paragraph (perhaps (IV) (A)) that reads: "(A) SIX MILLION DOLLARS AND TRANSFER SUCH SLJM TO THE CAPITAL ACCOUNT OF THE SPECIES CONSERVATION TRUST FUNDCREATED IN 24-33-111 (2) (a), C.R.S., ON OR AFTER JULY l, 2007." O&MAccount - San Luis Valley project in FY2007-08. The amount that was recommended on the species conservation eligibility list to the General Assembly for the San Luis Valley Willow Flycatcher conservation plan was $85,000, not the $80,000 that appears for the project in the draft bill. The Department recommends that the bill draft be amended to change the amount on page 3, line 22 from "$80,000" to "$85,00011 .