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(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to General Appropriations Act

SOURCES OF INFORMATION

Economic Development Department

LFC Files

SUMMARY

Synopsis of Bill

Senate Bill 12 appropriates $2,000.0 to the Economic Development Department for the Regional Community Development program. The bill stipulates funding for seven regional developer positions and to professionally market New Mexico to attract new businesses.

Significant Issues

During the 1999 Legislative Session, the appropriation to the Economic Development Division contained language that organized the state into seven regions and designated $50.0 of base budget funds per region. The primary focus of the program is to address the lowest unemployment rates throughout the state and assist programs, organizations and businesses create and retain jobs.

The Economic Development Division is in the first-year implementation of the Accountability in Government Act. Within the division, the Regional Community Development program has a number of output measures developed during the 1999 interim. Job creation and employment growth rank measures are included for the entire division. The following are the performance measures for the Regional Community Development program thus far:

FY99 FY00 FY01

Measure Baseline Projection Target

Number of rural projects assisted 130 149 168

Number of urban projects assisted 102 117 132

Number of rural training events/sessions 357 375 390

Number of urban training events/sessions 63 66 70

Number of Main Street programs that have received

funding and technical assistance 65 70 75

FISCAL IMPLICATIONS

The bill appropriates $2,000.0, an average of $285.7 per region, from the general fund for expenditure in fiscal year 2001. Any unexpended or unencumbered balance remaining at the end of fiscal year 2001 shall revert to the general fund.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

This bill relates to the General Appropriation Act (GAA). In 1999, the GAA designated $50.0 for each of the seven regions. In 2000, this program will be included in the GAA with the above stated measures.

MW/gm