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 for
other purposes.
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 in
SPONSOR: |
Altamirano |
DATE TYPED: |
|
HB |
|
||
SHORT TITLE: |
Cumbres & Toltec Appropriation |
SB |
32 |
||||
|
ANALYST: |
|
|||||
APPROPRIATION
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
||
FY03 |
FY04 |
FY03 |
FY04 |
|
|
|
$1,600.0 |
|
|
Non-Recurring |
General
Fund |
(Parenthesis
( ) Indicate Expenditure Decreases)
Duplicates a Capital Request
LFC Files
Executive Recommendation
No
Responses Received From
Department
of Finance and Administration
SUMMARY
Synopsis
of Bill
Senate Bill 32
appropriates $1.6 million from the general fund to the Cumbres and Toltec
scenic railroad commission for repairs and maintenance.
FISCAL IMPLICATIONS
The appropriation of $1,600.0 contained in this bill is a
non-recurring expense to the general fund and is contingent upon an equal sum
from the state of
After operating
the C&TSR 75-year-old locomotives up 4% grades, around sharp curves and
hauling heavy loads, the costs of rehabilitating, operating and maintaining the
steam-powered railroad is taking its toll.
A 1995 study by an independent operator indicated that it could cost $15
million to bring the railroad up to its potential and standard working
order.
Recent information submitted to LFC indicates
that at least three of six locomotives are needed to start the 2003
Season. Upgrades are also necessary to
comply with Federal Railroad Administration regulations. The Commission needs approximately $1.3
million to upgrade three locomotives for the upcoming season. This appropriation in this bill also covers
maintenance costs of $100.0 and $180.0
for an assessment study.
OTHER SUBSTANTIVE
ISSUES
The Cumbres and Toltec Scenic Railroad (C&TSR) generates $45 million annually in economic activity for two of the poorest counties in the nation. The railroad attracts 55,000 to 70,000 tourists annually and employs 20 full-time and 50 part-time employees with a payroll of more than $1.5 million. The C&TSR is a prime source of tourism revenue to northern New Mexicans, particularly in the community of Chama. However, compounding financial, operational and unforeseen problems and a backlog of deferred maintenance and serious infrastructure needs are threatening the successful operation of the C&TSR.
TECHNICAL ISSUES
Recent information provided to the LFC as it relates to the new commission may require language changes to this legislation.
MM/prr;yr;ls