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F I S C A L I M P A C T R E P O R T





SPONSOR: Cisneros DATE TYPED: 02/12/01 HB
SHORT TITLE: Red River Ski Area Expansion SB 471
ANALYST: Padilla


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY01 FY02 FY01 FY02
$ 500.0 Non-Recurring General Fund



(Parenthesis ( ) Indicate Expenditure Decreases)



SOURCES OF INFORMATION



LFC files

Economic Development Department (EDD)

Energy, Minerals and Natural Resources Department (EMNRD)

Department of Environment



SUMMARY



Synopsis of Bill



Senate Bill 471 appropriates $500.0 from the general fund to the Local Government Division of the Department of Finance and Administration for the purpose of planning for redevelopment and expansion of the Red River ski area.



Significant Issues



The bill covers expenditures for a master plan, feasibility study and environmental impact statement for redevelopment and expansion of the Red River Ski area.



The Red River ski area is a private, for-profit enterprise. Land management is by the Carson National Forest. Because the appropriation made by this bill would directly benefit the Red River ski area, the bill may violate the anti-donation clause of the New Mexico constitution.



FISCAL IMPLICATIONS



The appropriation of $500.0 contained in this bill is a non-recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2002 shall revert to the general fund.



OTHER SUBSTANTIVE ISSUES



The Department of Environment adds:



Senate Bill 471 correctly recognizes the need for environmental impact analysis before any redevelopment of the ski area is undertaken. The Red River watershed is severely degraded by both natural and human-induced impacts. The Red River ski area is one of these. Redevelopment of the ski area implies modifications to the existing circumstance. Any such modifications must be analyzed for possible impacts to the watershed and the Red River. One important goal of redeveloping the ski area should be to minimize impacts to the watershed and the Red River.



ALTERNATIVES



The Economic Development Department believes the community of Red River could apply for grant funding from the Carson National Forest for a master plan and an environmental impact statement. EDD notes that the Santa Fe National Forest provided a grant for similar work for the Santa Fe ski basin.



POSSIBLE QUESTIONS



Does the appropriation contained in this bill violate the anti-donation clause of the New Mexico constitution?



LP/ar