124th MAINE LEGISLATURE
		LD 1483		LR 2009(01)
	An Act To Stimulate the Maine Economy by Making Funds Available to First-time Home Buyers To Allow Them To Take Advantage of the Federal First-time Home Buyer Tax Credit
	Preliminary Fiscal Impact Statement for Original Bill
	Sponsor: Rep. Cleary of Houlton
	Committee: Appropriations and Financial Affairs
	Fiscal Note Required: Yes
Preliminary Fiscal Impact Statement
			2009-10	2010-11	Projections 2011-12	Projections 2012-13
Net Cost (Savings)
	General Fund		$21,000	$0	$0	$0
	Highway Fund		$4,200	$0	$0	$0
Revenue
	General Fund		($21,000)	$0	$0	$0
	Highway Fund		($4,200)	$0	$0	$0
	Other Special Revenue Funds		($16,800)	$0	$0	$0
Fiscal Detail and Notes
	This bill allows the State Treasurer to deposit up to $4 million with financial institutions at interest rates that are up to 2% below market with the requirement that these financial institutions pass the interest rate reduction on to bridge loans made to first-time homebuyers.  At the full 2% the loss of interest earnings to the Treasurer's Cash Pool would be $80,000.  However, as the projected earnings rate in the Cash Pool is currently 1.05%, the loss based on the lower discount would be $42,000.  The federal first-time homebuyers’ tax credit is scheduled to expire on December 1, 2009 and this fiscal note assumes that the deposits would be limited to fiscal year 2010 only.  If the bill intends for the reduced rate deposit program to continue beyond the federal tax credit that expires on December 1, 2009, language needs to be added to the bill to make this clear.  Additional costs to the Maine State Housing Authority and the State Treasurer can be absorbed within existing budgeted resources.