124th MAINE LEGISLATURE
		LD 1664		LR 2421(02)
	An Act To Enhance the Redevelopment of the Brunswick Naval Air Station
	Fiscal Note for Bill as Amended by Committee Amendment "   "
	Committee: Business, Research and Economic Development
	Fiscal Note Required: Yes
Fiscal Note
Potential future biennium cost increase - General Fund
			2009-10	2010-11	Projections 2011-12	Projections 2012-13
Net Cost (Savings)
	General Fund		$0	$0	$24,270	$101,352
Appropriations/Allocations
	Other Special Revenue Funds		$0	$0	$24,720	$101,352
Revenue
	General Fund		$0	$0	($24,270)	($101,352)
	Other Special Revenue Funds		$0	$0	$24,720	$101,352
Transfers
	Other Special Revenue Funds		$0	$0	$0	$0
Fiscal Detail and Notes
	The bill establishes the Brunswick Naval Air Station Job Increment Financing Fund to (1) support local higher education programs and costs of the Midcoast Campus of Southern Maine Community College, and (2) support the Midcoast Regional Development Authority.  The Fund will annually receive from the state 50% of the employment tax increment attributed to employees at the base area that is greater than the base level of employment for a business.  This revenue would otherwise be credited to the General Fund.  The reduction in General Fund revenue is estimated to be $24,270 in fiscal year 2011-12 and $101,352 in fiscal year 2012-13.
	This legislation provides that in fiscal years 2011-12 and 2012-13 100% of the above amounts be transferred from the Fund to the Maine Community College System (MCCS) for higher education services costs associated with establishing and operating the Midcoast Campus.  In fiscal year 2014 MCCS will receive 75% of the revenue credited to the Fund and the Midcoast Regional Development Authority will receive the remaining 25% to fund municipal services in the base area, including water, sewer, electricity, telecommunications, fire protection, police protection, sanitation services and the maintenance of buildings, facilities, grounds and roads.  After that, the two purposes will each receive 50% of the Fund revenues until January 1, 2031.
	The Maine Community College System has estimated the first year cost of establishing and operating the Midcoast Campus to be approximately $1,277,328 and anticipates revenue from tuition to be $263,835 and rent revenue to be $10,000, resulting in net first year costs of $1,003,493.  Net costs are projected to be $1,429,291 in the second year of operation and $1,272,118 in the third year. Given that funding from the Brunswick Naval Air Station Job Increment Financing Fund will not be sufficient to support the estimated costs of establishing and operating the Midcoast Campus, MCCS is seeking to identify and secure alternative sources of funding.  The ability of MCCS to secure other funding sources, other than General Fund appropriations, to support the operating costs of the Midcoast Campus can not be determined at this time.
	The Maine Community College System has also identified approximately $4,800,000 in costs for renovations of certain buildings located at the Brunswick Naval Air Station that will be used to house the higher education engineering and economic development center. Public Law 2009, chapter 414, An Act To Authorize Bond Issues for Ratification by the Voters for the November 2009 and June 2010 Elections, includes a request for $4,750,000 for this purpose and will be presented to the voters as part of the June 2010 referendum.  If this measure is not approved by the voters, additional General Fund appropriations to the Maine Community College System will be required for the capital costs associated with establishing the Midcoast Campus.
	Any additional costs to the Bureau of Revenue Services associated with calculating job tax increments and related tasks can be absorbed within existing budgeted resources.