[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.

Only the most recent FIR version (in HTML & Adobe PDF formats) is available on the Legislative Website. The Adobe PDF version includes all attachments, whereas the HTML version does not. Previously issued FIRs and attachments may be obtained from the LFC’s office in Suite 101 of the State Capitol Building North.

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

SPONSOR:	Campos		DATE TYPED:	02/06/02		HB
SHORT TITLE:		Rural Broadband Telecommunications Project				SB	406
					ANALYST:		Carrillo

APPROPRIATION

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

FY02

FY03

$500.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to HCO Request 926, SB180

SOURCES OF INFORMATION

General Services Department (GSD)

Information Technology Management Office

SUMMARY

Synopsis of Bill

Senate Bill 406, Rural Broadband Telecommunications Project, appropriates $500.0 from the General Fund to the Information Technology Commission for the purpose of funding a rural broadband telecommunications demonstration project ion San Miguel County. The bill contains both reversion and emergency clauses.

Significant Issues

According to the Information Technology Management Office (ITMO) staff this bill appears to be duplicative of the MAGnet initiative. MAGnet initiative funding has been used to contract for development of comprehensive telecommunications architecture for the state.

The General Services Department (GSD) staff notes rural communities throughout the state are trying to address their telecommunications issues. The state has put significant effort into developing a cost-effective and comprehensive approach to solving telecommunications access issues throughout rural New Mexico. Paramount among these is converting the State’s antiquated analog microwave system to digital technology, as required by the Federal Communications Commission by

2003. Several demonstration (pilot) programs have been conducted in recent years, such as the 1998 microwave project in Questa and a circuit aggregation MAGnet pilot project in Carlsbad (which is nearing completion).

FISCAL IMPLICATIONS

The appropriation of $500.0 contained in this bill is a recurring expense to the General Fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2003 shall revert to the General Fund. Earmarking reduces the ability of the legislature to establish spending priorities.

RELATIONSHIP

House Capital Outlay Request 926 -- $10,000.0 for continued conversion of the State’s microwave radio system to digital technology.

SB180, State Telecommunications Assessment & Network

WC/ar