SENATE JOINT MEMORIAL 21

49th legislature - STATE OF NEW MEXICO - second session, 2010

INTRODUCED BY

Pete Campos

A JOINT MEMORIAL

REQUESTING THE LEGISLATIVE FINANCE COMMITTEE, THE DEPARTMENT OF FINANCE AND ADMINISTRATION AND THE LEGISLATIVE COUNCIL SERVICE TO COLLABORATE ON A PROCESS TO PRIORITIZE, REVIEW AND MONITOR CAPITAL OUTLAY PROJECTS.

     WHEREAS, the state currently has no uniform means for setting priorities for the expenditure of capital outlay funding when some capital outlay funds reflect the priorities of legislators and others reflect the priorities of the governor; and

     WHEREAS, uniformity of evaluation becomes even more difficult when some capital outlay projects are well on their way to completion while other exciting initiatives languish for lack of start-up money; and

     WHEREAS, the needs of legislative districts vary so widely that some districts may lack even minimally graded roads that enable students to attend schools while others refine the texture of asphalt at baseball field parking lots, and some districts have no playgrounds while others use capital outlay funds to refurbish elegant buildings; and

     WHEREAS, some capital outlay projects that otherwise would not be evaluated as a high priority become a priority if they must meet a deadline in order to draw down matching funds from other sources, and matching funds can save the state money in the long run; and

     WHEREAS, setting priorities so that the state's voters are treated equitably can be next to impossible, given the variety of needs, the levels of project completion and the urgency presented in communities across the state; and

     WHEREAS, some capital outlay projects can be funded in phases while others require all of the money at once in order to be completed; and

     WHEREAS, even though basic capital outlay priorities lack a standard framework for evaluation, models of evaluation have already been set for public schools, for roads with federal funding and for New Mexico Finance Authority Act projects; and

     WHEREAS, it appears that a committee or working group representing competing interests presented by geographic and population disparity would be helpful in sorting through priorities and devising a framework by which to weigh the need for, versus the availability of, capital outlay funds; and

     WHEREAS, while oversight and review of existing projects are currently provided by a variety of departments with a variety of standards, a single mode of evaluation and review would aid the state in deciding whether to continue or to divert funds that have been allocated to a capital outlay project;

     NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the legislative finance committee, the department of finance and administration and the legislative council service be requested to collaborate on a process to prioritize, review and monitor capital outlay projects; and

     BE IT FURTHER RESOLVED that the three entities establish a capital outlay planning and review committee; and

     BE IT FURTHER RESOLVED that the committee be granted the authority to request an audit by the state auditor or a financial compliance or performance audit by the department of finance and administration or the legislative finance committee; and

     BE IT FURTHER RESOLVED that, by January 1, 2011, the committee recommend to the legislature through the appropriate interim committee a framework for:

          A. making priority-setting for capital outlay projects more uniform;

          B. establishing procedures to ensure current and complete accounting and reporting on capital projects; and

          C. analyzing requests in light of the critical needs of the state; the need for the capital project; the ability to phase the capital project, if necessary; the ability of the recipient to provide adequate staffing and funding for future operations; the expected useful life of the capital project; the available alternatives to the capital project; the availability of matching funds; and other considerations as determined by the committee; and

     BE IT FURTHER RESOLVED that the capital outlay planning and review committee invite representatives of federal agencies that provide loans and grants to New Mexico communities to participate in its meetings and invite others who influence the amount and type of funding available for capital outlay projects; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the legislative finance committee, the department of finance and administration and the legislative council service.

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