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.

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(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Department of Public Safety (DPS)

SUMMARY

     Synopsis of HAFC Amendments

House Appropriation and Finance Committee amendment to HB947/HAFC changes the reversion date from the end of fiscal year 2001 to the end of fiscal year 2002.

Synopsis of Bill

HB947/HAFC appropriates $2,100.0 million in general fund to DPS to restore county roads used as a school bus routes and damaged by recent storm thaws. The appropriations shall be used to supplement any relief provided pursuant to a declaration of emergency by the governor under Sections 6-7-1 through 6-7-3 NMSA 1978 and may be used to satisfy any cost-sharing requirement for assistance granted pursuant to those sections. The bill contains an emergency declaration and a reversion clause at the end of FY2001.

Significant Issues

Under the provisions of the bill, the appropriation would go to DPS who would then disburse $300.0 to each of the following counties: Mora, Union, Harding, San Miguel, Guadalupe, Torrance and Santa Fe Counties.

PERFORMANCE IMPLICATIONS

DPS, Office of Emergency Management routinely manages the Governor's Disaster Assistance Program. This Bill will provide funds to supplement this program. Managing distribution of these funds will require extra effort on several DPS functional areas but should not impact the overall performance measures of the department.

ADMINISTRATIVE IMPLICATIONS

DPS reports passage of this bill should not cause significant administrative impacts on DPS. There will be some administrative requirements in providing the funding to local governments and monitoring use of the funds. This will not require any increase in FTE.

TECHNICAL ISSUES

DPS reports, although these funds are supplemental to the funds made available through the Governor's disaster declarations for the above named counties, an alternative to this bill would be an amendment that provides funds to the Department of Finance and Administration, Local Government Division, who in turn could serve as the flow-through agency to the local governments.

OTHER SUBSTANTIVE ISSUES

According to DPS, an issue may be the use of funds by the local jurisdiction. How does DPS ensure funds are being used to meet the intent of this bill if the funding is provided up front, prior to work completion?

The bill does not mention if the funding is to be provided to the counties on a reimbursement basis, as is the case with the Governor's Disaster Assistance Program, or provided prior to work beginning.

LAT/njw