LD 1163 LR 145(01)
An Act To Authorize a General Fund Bond Issue To Provide Funding for a Program of Student Debt Payment and To Provide for the Establishment of That Program
Preliminary Fiscal Impact Statement for Original Bill
Sponsor: Sen. Libby of Androscoggin
Committee: Appropriations and Financial Affairs
Fiscal Note Required: Yes
Preliminary Fiscal Impact Statement
Current biennium cost increase - General Fund
Bond Issues Term (years) Principal Rate (%) Interest Total Cost
General Fund - Taxable 10 $250,000,000 4.75% $65,312,500 $315,312,500
Referendum Costs Month/Year Election Type Question Length
Nov-18 General Bond Issue Standard
The Secretary of State's budget includes sufficient funds to accommodate one ballot of average length for the general election in November.  If the number or size of the referendum questions requires production and delivery of a second ballot, an additional appropriation of $107,250 may be required.
Fiscal Detail and Notes
The Finance Authority of Maine estimates its cost to establish and operate the Student Debt Cancellation and Refinance Program to be between $750,000 and $1,000,000 per year, or between 3% and 4%, assuming annual bond activity of $25,000,000 per year over the 10 year period.  Because this legislation provides that a portion of the bond monies may be used for administrative costs, no General Fund appropriations are required.