45th legislature - STATE OF NEW MEXICO - second session, 2002

REQUESTING THAT THE DEPARTMENT OF FINANCE AND ADMINISTRATION AND THE TAXATION AND REVENUE DEPARTMENT CONDUCT A STUDY TO DETERMINE THE FEASIBILITY OF USING FISCAL AND TAX FORECASTING SOFTWARE.

WHEREAS, every year, the New Mexico legislature proposes numerous measures to provide tax relief or other economic stimulus benefits; and

WHEREAS, the legislature must understand both the short- and long-term costs and benefits of the proposed measures to properly evaluate their impact; and

WHEREAS, the state's economy is impacted by various factors, including population density in rural and urban areas; imports and exports; interstate, intrastate and international migration; agricultural, technological, tourism and other industries; and natural resources; and

WHEREAS, the state's efforts to formulate and implement appropriate tax and economic development policy must take into consideration the regional, as well as the statewide, implications of those efforts; and

WHEREAS, the recent economic impact of terrorist attacks, a major bankruptcy and substandard accounting and auditing practices require that the state's fiscal policy and revenue projections be as economically sound as possible; and

WHEREAS, the estimated three-year cost of the use of customized economic forecasting software is about three-thousandths of one percent of the projected general fund expenditures for fiscal year 2003;

NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the department of finance and administration and the taxation and revenue department be requested to investigate the purchase, lease or rental of customized software that will provide dynamic economic forecasting and fiscal analysis; and

BE IT FURTHER RESOLVED that the department of finance and administration and the taxation and revenue department take into consideration:

A. national, state, regional and local data variables that can affect the economy at state and local levels;

B. the feasibility of using state, regional or county models;

C. the diverse industries and small businesses that provide employment for the state;

D. variations in consumer income, spending and investment; and

E. existing and proposed national, state and local tax structures; and

BE IT FURTHER RESOLVED that, during the 2002 interim, the department of finance and administration and the taxation and revenue department demonstrate some of the available economic forecasting software to the revenue stabilization and tax policy committee and the legislative finance committee; and

BE IT FURTHER RESOLVED that the department of finance and administration and the taxation and revenue department present their findings and recommendations to the revenue stabilization and tax policy committee and the legislative finance committee by October 30, 2002; and

BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the department of finance and administration and the taxation and revenue department.