Fiscal Note

HB0119 - Emergency Communication Funding

State Impact:
If this bill is enacted, revenue to the Statewide Unified E-911 Emergency Services Fund will decrease by $2,579,400 in FY 2008 and $1,146,400 in FY 2009 and beyond. The Utah State Tax Commission will no longer be required to collect a portion of tax on individual telephone lines and will lose dedicated credits associated with collection of such tax equal to $39,600 in FY 2008 and $17,600 in FY 2009 and beyond. Enactment of this bill will appropriate $5.7 million from the Statewide Unified E-911 Emergency Services Fund on a one-time basis to the Department of Public Safety (DPS) for grants. This is in addition to $3.9 million appropriated to DPS from the account in the base budget bill (H.B. 1, 2007 General Session) and $5.4 million in nonlapsing balances anticipated in the DPS grant program for FY 2007. Finally, as the State is a consumer of telephone lines, the State would save $9,700 per year due to the decreased telephone surcharges enacted by this bill.

Funding SourceFY 2007
Approp.
FY 2008
Approp.
FY 2009
Approp.
FY 2007
Revenue
FY 2008
Revenue
FY 2009
Revenue
General Fund$0($6,500)($6,500)$0$0$0
Federal Funds$0($3,200)($3,200)$0$0$0
Dedicated Credits$0$0$0$0($39,600)($17,600)
Restricted Funds$0$5,700,000$0$0($2,579,400)($1,146,400)
   Total
$0

$5,690,300

($9,700)

$0

($2,619,000)

($1,164,000)

Individual, Business and/or Local Impact:
Telecommunications carriers will not longer be required to collect a portion of tax on individual lines and will lose associated revenue of $39,600 in FY 2008 and $17,600 in FY 2009 and beyond. Local governments may collect additional tax revenue associated with a $0.61 per line charge extended to new telecommunications technologies like Voice Over Internet Protocol (VOIP).

1/18/2007, 5:08:00 PM, Lead Analyst: Ball, J.Office of the Legislative Fiscal Analyst