[1]NOTE:
As provided in LFC policy, this report is intended only 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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SPONSOR: |
Rawson |
DATE TYPED: |
02/05/02 |
HB |
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SHORT TITLE: |
Revenue Source for Additional Funding |
SB |
304 |
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ANALYST: |
Gilbert |
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APPROPRIATION
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Appropriation
Contained |
Estimated
Additional Impact |
Recurring or Non-Rec |
Fund Affected |
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FY02 |
FY03 |
FY02 |
FY03 |
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NFI |
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(Parenthesis
( ) Indicate Expenditure Decreases)
LFC Files
Response Received From
State Department of Education (SDE)
State Land Office (SLO)
Public Employees Retirement Association (PERA)
Bernalillo County Metropolitan Court (BCMC)
Administrative Office of the Courts (AOC)
SUMMARY
Synopsis
of Bill
Senate
Bill 304 amends Section 6-3-18 NMSA 1978, by adding language that requires that
administrative heads of a state agencies, who are not appointed by the
governor, to provide a recommendation of a revenue source for additional
money requested within an agency’s budget.
Significant
Issues
As part of the Department of Finance and
Administration (DFA) and Legislative Finance Committee (LFC) mandated budget
preparation process, most agencies currently recommend a revenue source for all
appropriation requests.
However, a review of Chapter 6, Article 3,
“State Budgets,” reveals that there is not an explicit requirement for agency
appropriation requests to be exactly matched to revenue sources. In reality, the practice has been that such
a dollar for dollar match is implicit in the DFA and LFC budget preparation
process.
OTHER SUBSTANTIVE ISSUES
Although
most agencies already recommend a revenue source for appropriation requests,
the Administrative Office of the Courts (AOC) believes this bill would create
an onerous burden on the Judicial Branch. However, the AOC failed to list
specific reasons for this claim.
POSSIBLE QUESTIONS
Since requiring appropriation increases to have
a specified identified revenue source is good fiscal policy, why shouldn’t this
provision apply to all agencies; not just to those outside the Governor’s
direct control?
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