Fiscal Note
SB0075S01 - U Star Initiative
State Impact:
Passage of this bill will require an appropriation of $50 million one-time in FY 2007 and a net appropriation of $15.25 million ongoing ($19.25 million, with transfers from ongoing General Fund appropriations to Utah State University and University of Utah of $1.6 million and $2.4 million, respectively) from the General Fund to the Utah Science Technology and Research Governing Authority.
A general obligation bond of $110 million will be issued for facilities (plus issuance costs) when the University of Utah and Utah State University meet conditions of the bill. Assuming a standard six-year repayment period with flattened payments at today’s interest rates, there will be six annual payments of approximately $20.6 million. The actual debt service schedule will vary according to how the bond is structured.
| Funding Source | FY 2007 Approp. | FY 2008 Approp. | FY 2007 Revenue | FY 2008 Revenue |
| General Fund | $19,250,000 | $19,250,000 | $0 | $0 |
| General Fund, One-Time | $50,000,000 | $0 | $0 | $0 |
| Dedicated Credits | $0 | $0 | $110,000,000 | $0 |
| General Fund | ($4,000,000) | ($4,000,000) | $0 | $0 |
| Total | $65,250,000 | $15,250,000 | $110,000,000 | $0 |
Individual and Business Impact:
Passage of this bill could enhance high technology and research development throughout the state. Entrepreneurs and businesses may benefit from the technology outreach program the bill creates.
Office of the Legislative Fiscal Analyst
2/24/2006, 4:19:57 PM