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.
| SPONSOR: | Vigil | DATE TYPED: | 03/14/01 | HB | HJM - 75 | ||
| SHORT TITLE: | Local Government Infrastructure | SB | |||||
| ANALYST: | Padilla | ||||||
| Recurring
or Non-Rec |
Fund
Affected | ||||
| FY01 | FY02 | FY01 | FY02 | ||
| NFI | |||||
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates/Conflicts with/Companion to/Relates to
SOURCES OF INFORMATION
LFC Files
Department of Finance and Administration
SUMMARY
Synopsis of Bill
House Joint Memorial 75 requests the United States Congress to appropriate funds to assist local governments with infrastructure improvements. The memorial explains that local governments often have difficulty in financing improvements such as street paving, water and drainage systems and erosion prevention.
Significant Issues
In an annual effort to coordinate and plan local infrastructure capital improvements, DFA's Local Government Division works with municipalities, counties, tribes and other local government entities to prepare the Local Infrastructure Capital Improvement Plan (ICIP). The ICIP catalogs the needs of local governments in the following areas: water supply, housing, roads/streets/bridges, parks, fire equipment, wastewater, solid waste, cultural facilities, airports, administrative facilities, storm/surface water containment, service facilities and other.
The ICIP is used by the legislature (in making decisions on capital outlay), the New Mexico Finance Authority and by DFA (in making decisions on CDBG funding).
The State Highway and Transportation Department coordinates a related effort-the Transportation Improvement Plan--for local street improvement needs.
Federal agencies that provide funding (loans and grants) for local infrastructure development include the U.S. Department of Agriculture, the Department of Transportation, the Environmental Protection Agency and the Department of Housing and Urban Development. DFA reports that federal funding for water and wastewater projects has declined over the years.
The Department of Housing and Urban Development administers the Community Development Block Grant program (CDBG). CDBG funding is provided to entitlement cities, urban counties and states based on a formula and may be used for community and economic development activities. New Mexico receives approximately $20 million in CDBG funds annually.
Many local governments in New Mexico have large unused bonding capacities which could be tapped to finance infrastructure improvements.
FISCAL IMPLICATIONS
This is a memorial and contains no appropriation.
LP/njw