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 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:

Varela

 

DATE TYPED:

1/29/03

 

HB

65

 

SHORT TITLE:

Tourism Advertising & Promotion

SB

 

 

 

ANALYST:

Collard

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

$2,000.0

 

See Narrative

Recurring

General Fund

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

 

Responses Received From

Energy, Minerals, and Natural Resources Department

Tourism Department

 

SUMMARY

 

     Synopsis of Bill

 

House Bill 65 appropriates $2 million from the general fund to the Tourism Department for the purpose of tourism advertising and promotion.

 

     Significant Issues

 

FISCAL IMPLICATIONS

 

The appropriation of $2,000.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY04 shall revert to the general fund.

 

ADMINISTRATIVE IMPLICATIONS

 

The Tourism Department indicates they have the administrative infrastructure in place to administer this appropriation and project.  The department anticipates minimal additional funds will be spent for administrative costs.

 

OTHER SUBSTANTIVE ISSUES

 

The Energy, Minerals and Natural Resources Department (EMNRD) points out the appropriation does not include funding for state parks advertising and promotion.  State parks are a large part of the tourism industry in New Mexico.  Based on information from a 2002 New Mexico State University survey, state park visitors contributed over $104,000.0* to local economies.  Approximately 70 percent of the state’s population is located in communities within two to 40 miles of a state park.  These communities derive an economic benefit from over four million visitors to the state parks.  The department requests that a portion of this appropriation be directly allocated to state parks advertising and promotion and recommends that EMNRD and the Tourism Department work closely together to provide comprehensive advertising and promotion.

 

The Tourism Department notes that department experience and industry research have indicated an eight to one return in advertising and marketing to tourism visitations and this bill will help to increase those numbers, which will also help improve the agency’s performance measures pertaining to advertising.

 

* This amount was calculated by EMNRD based on actual numbers, however, due to the small sample size, it is a conservative estimation.

 

KBC/njw