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<br />It is noted on the attached tabulation that the theoretical <br />state revenue loss because of mineral fund distribution to counties is <br />$840,000. This represents only eight and one-half percent of the total <br />mineral leasing funds received by the state. We stress the term <br />"theoretical loss" because in actual fact the state will receive a net <br />revenue increase of over seven million dollars per year as a result of <br />the PILT Act. The amount will increase from year to year as the county <br />populations increase. <br /> <br />Under the present state law, the counties directly receive <br />only about seventeen percent of the mineral leasing funds paid to the <br />state by the federal government. S.B. 35 would maintain the existing <br />monetary distribution to the counties. We are under the impression that <br />Congress used the existing Colorado law in estimating the amount of <br />money that would be payable to Colorado counties under the PILT Act. <br /> <br />County budgets for over the past twenty years have been based <br />upon the receipt of relatively fixed amounts from the federal mineral <br />leasing fund. As already previously stated, the total of these funds . <br />paid to the respective counties is relatively small (17%) in proportion <br />to the total mineral leasing funds received by this state. We deem it <br />highly inadvisable to reduce the rather small county payments to an <br />even lower figure in order to recoup the theoretical loss of PILT funds. <br />If the federal government will accept at face value the sums which have <br />been distributed directly to the counties now for over twenty years, <br />then we believe that we should let well enough alone. <br /> <br />Since S.B. 35 would continue.,direct county payments in the <br />same amounts as in the past and would retain a valuable precedent, we <br />recommend that it be enacted without change. <br /> <br />FLS :mm <br />Attachments <br /> <br />C Y!'\ck",c--UYp AWdrhJJ d <br />~J rOjf'':S 0 ~ '--' <br /> <br />2461 <br /> <br />Memorandum <br /> <br />-4- <br /> <br />January 24, 1977 <br />