NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.

(Parenthesis ( ) Indicate Revenue Decreases)

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of SFC Amendment

The SFC amendment changes the effective date from July 1, 2000 to July 1, 2001.

Synopsis of SWMC Substitute Bill

This Substitute bill revises the Local DWI Grant Fund share of the state Liquor Excise Tax from 27.2% to 32.7% of net receipts, shifting about $2 million from the State General Fund to the Local DWI Grant Fund. A new distribution (appropriation) is provided to Bernalillo County in the amount of $2 million for funding alcohol detoxification and treatment facilities.

FISCAL IMPLICATIONS

Synopsis of SFC amendment

The SFC amendment would move back the fiscal impacts one year. The impact in FY 2000-2001 is estimated to be $178.4 and $2000.0 in FY 2001-2002.

The FY 2000-2001 fiscal impact results from the July 1, 2001 effective date of the bill. Money received in one month is distributed in the following month. Some taxes, like the Motor Vehicle Excise Tax, specify that money is distributed "as of the end of a month" no matter what the actual date of the computation and transfer. The Liquor Excise Tax and most other Tax Administration Act taxes are distributed under Section 7-1-6.1 NMSA 1978 which states that "the money … in the suspense fund as of the last day of the month" shall be identified and distributed. Thus, the change to the distribution percentage will be in effect in mid-July, 2001 when the distribution of June, 2001 revenue is executed.

The $178.4 thousand from FY 2000-2001 would be distributed to counties under the DWI Program Distribution.

ADMINISTRATIVE IMPLICATIONS

Minimal.

OTHER SUBSTANTIVE ISSUES

The following information was provided by the University of New Mexico Center on Alcoholism, Substance Abuse and Addictions (CASAA).

Alcohol is the drug most frequently abused in New Mexico. Marijuana use and heroin use are also too frequent, as is the use and abuse of methamphetamines and cocaine. New Mexico has not received a great deal of attention for its alcohol and drug problems in the national media, a very substantial problem with all of these substances exist.

For a number of years the National Institute on Alcohol Abuse and Alcoholism (NIAAA) has ranked states and counties throughout the nation regarding their problems with alcohol related mortality. For the most recent years available, 1979 through 1985, New Mexico has ranked number one. Furthermore, twelve of New Mexico's thirty-two counties have alcohol-related mortality which puts them in the highest 108 in the nation, and six of them are also in the highest 4%.

In addition to the above mortality issues, the health care system in New Mexico is burdened with a number of cases of alcohol-related illness. In the State's emergency rooms, it is estimated that up to 80% of all traumatic injuries involve alcohol. In addition, the problems of Fetal Alcohol Syndrome (FAS) and Fetal Alcohol Effects (FAE) are special concerns. They are presently the leading major birth defects in New Mexico, with a combined prevalence rate estimated to be 5.0 per 1,000 births.

Estimates in New Mexico indicate that 72% of those incarcerated in correctional institutions were under the influence of drugs or alcohol when the crime was committed, or were supporting drug habits at the time. In 1988, 38% of adults under active probation and 47% of adults on parole were diagnosed as having problems with substance abuse.

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